While oil from Russia is no longer wanted, there are fears about Russian gas supplies. German industry is still too dependent to be able to cope with a shortfall. The demand for subsidies from the federal government for energy-saving measures in building renovations has increased to such an extent that the pots ran dry faster than expected. Manuel Berkel has analyzed why further applications can no longer be approved for the time being and why this is hitting the industry particularly hard at the present time.
Yesterday, several EU countries sent a letter to the Commission calling for mandatory solar rooves. Photovoltaic systems are to be installed on certain buildings on a mandatory basis in order to achieve the currently pressing targets. Not among the senders: Germany.
There is hacking and stalling everywhere you look. A compromise is also not in sight in the negotiations on ETS reform. Agreement on the introduction of the second ETS continues to be particularly difficult.
In France, on the other hand, everything happened surprisingly quickly: shortly after the presidential election, in which Jean-Luc Mélenchon narrowly missed the runoff, he is now forming a strong left-wing alliance with the Socialists and Greens against Emmanuel Macron in the run-up to the parliamentary elections. Tanja Kuchenbecker explains why this alliance could pose a threat to the EU.
Have a great weekend!
After the stop-and-go on federal funding for building renovation, the traffic light coalition cannot meet demand for another energy-saving program fast enough. For the time being, subsidies for the Energy and Resource Efficiency in the Economy (EEW) program would only be paid out for projects that have already been approved. This was explained by a spokesman for the Federal Office of Economics and Export Control (BAFA) on Thursday evening at the request of Europe.Table. However, the authority does not want to speak of a funding stop.
With the program, BAFA and KfW promote the acquisition of energy-efficient new plants, the optimization of existing processes, and the conversion of heat applications in industry and commerce to renewable energies. According to the Ministry of Economics, more than 11,000 applications with a total funding volume of €567 million were approved last year.
The background to the current delays is the rapid increase in interest from companies as a result of high energy costs and the ongoing budget negotiations. Following the change of government, the federal budget for 2022 has not yet been passed. “The ‘Energy and Resource Efficiency in Business’ (EEW) program is therefore under provisional budgetary management. For the EEW program, therefore, only projects that have already been approved will be paid out for the time being,” BAFA Europe.Table announced.
The authority went on to explain: “Additional funding for the issuance of new allocation notices is only available to a reduced extent until the federal budget comes into force. There can therefore be no question of a funding freeze.”
It remained open with this answer whether the Bundestag has already released additional subsidies despite the still pending adoption of the entire budget. In the morning, the responsible head of department in the Federal Ministry of Economics, Oliver Bornkamm, had still spoken at the Berlin Energy Days that it would only be possible to “put a stamp on the applications” once the Budget Committee had approved a further so-called over-budget commitment appropriation for additional funding.
In any case, the association of companies that earn their money from energy efficiency is alarmed. “The beginning of the legislative period coincides extremely unfavorably with acutely high demand in all sectors of the economy. It is therefore all the more important that the regular federal budget is in place soon,” says Tatjana Ruhl of the German Business Initiative for Energy Efficiency (DENEFF). At the Berlin Energy Days on Wednesday, DENEFF had already criticized the fact that the funds from the support program were currently being used primarily to draw up transformation concepts for companies – but not yet for investments that would quickly bring about energy or resource savings.
For the economy, the faltering award comes at an inopportune time. A few days ago, calculations by the Jülich Research Center revealed that several energy-intensive industries and power plants in the EU would have to be cut off from gas for weeks if Russian supplies were reduced by two-thirds and gas storage facilities were to be filled until winter.
However, some investments in saving energy or switching to renewable energies are worthwhile even without subsidies, given the current high gas and oil prices. “Many measures that companies previously rejected are now paying off,” said Paul Fay of the Association of Energy Efficiency Networks Germany (AGEEN) at the panel discussion. “We just have to hope that companies survive.”
The need for information also shows how threatening the situation is for many companies. Some companies are acutely preoccupied with securing their energy supplies in the first place and have no time to plan efficiency measures, said Steffen Joest of the Initiative for Energy Efficiency and Climate Protection Networks (IEEKN). Other companies were looking all the more for advice. Information is now being prepared on fast-acting optimizations in energy consumption that do not require major investments.
According to Bornkamm, the German Federal Ministry of Economics is currently examining how the EEW program can be further developed, in particular, to reduce gas consumption. Accordingly, new funding could be provided for deep geothermal energy, which can also supply renewable heat beyond 100 degrees, concentrating solar thermal energy and mobile heat storage systems.
Jean-Luc Mélenchon came third in the presidential election. While the Socialists and Greens did poorly, he finished behind the far-right Marine Le Pen and narrowly missed the runoff. Under this condition, he is now seeking to unite the fragmented left.
The Socialists and Greens have backed the line of Mélenchon and his party La France Insoumise (LFI, Indomitable France). Mélenchon’s line: anti-EU and anti-capitalist. Together, they announced a “new ecological and social people’s union” and are sacrificing their European ideals in order to continue playing politics. For Mélenchon stands for a Europe of nations and threatens with “European disobedience”.
The nationalist current is thus taking over the left in France and moving it to the far-left fringe. If the new alliance of the left wins a majority of the 577 seats in the parliamentary elections on June 12 and 19, Mélenchon could repeatedly run afoul of the pro-European Macron as prime minister.
First Mélenchon won over the Communists (PCF) and Greens, then the Socialists, whose party council was to decide officially on Thursday evening whether to enter into the alliance. An agreement with LFI had already preceded. Together, they want to fight the “injustice” of Macron’s policies, make France more social, and prevent the extreme right from taking power. The Greens were able to win over Mélenchon with his climate policy program, and they all agree on raising the minimum wage.
For Mélenchon, Brussels is the capitalist opponent; he has always criticized Germany as a partner. He has become somewhat more moderate in tone in recent days so as not to frighten his partners, but he does not rule out breaking EU law if necessary. Above all, the debt rules are a thorn in his side; after all, he needs a lot of money to finance his social plans, including retirement at 60. He also disagrees with NATO; he wants to pull France out. Mélenchon came under criticism during the Ukraine war because he had previously shown himself to be too Russia-friendly. He was quick to condemn the attack on Ukraine, however. Nevertheless, his desire to break away from the US and NATO is clear.
If the now united left gains a majority, it will be difficult for Macron, who will have to agree on legislation and ministerial posts with his political opponents. This is called “cohabitation” in France. Macron must hope to hold a majority in parliament with his allies, and could also make deals with the right. Macron’s LREM party, which wants to call itself “Renaissance” in the future, is already joining forces with François Bayrou’s MoDEM and Edouard Philippe’s Horizons.
However, political experts believe that Mélenchon’s momentum, which has been building at the national level, will wane at the regional level. This is because there, citizens usually vote for the candidate they already know. In the ranks of LREM, many also hope that a Prime Minister Mélenchon will scare off the French. According to polls, around six out of ten French people are in favor of cohabitation, but only a minority are in favor of a Prime Minister Mélenchon.
As in the presidential elections, there will be two rounds of voting. If no one gets an absolute majority in the first round of the parliamentary elections, all those who have achieved at least 12.5 percent of the registered voters advance to the second round. A relative majority is then sufficient to claim victory. In this election, it is important to have alliance partners.
Polls are less meaningful than in presidential elections because they involve local politicians. According to the latest Harris Interactive poll, LREM would get 24 percent in the first round, Marine Le Pen’s RN (Rassemblement National) 23 percent, and Mélenchon’s LFI 19 percent. The Union of the Left could collectively reach 28 percent, LREM alone 24 percent, Le Pen’s far-right 23 percent, and the Republicans 8 percent. So far, there are only polls for the first round of voting.
However, the polling institute Harris Interactive vaguely estimates that LREM, with alliance partners, could still end up with 336 to 378 seats, i.e., an absolute majority. This would eliminate the danger of Mélenchon as Prime Minister for Europe. LREM initially had 306 seats in Macron’s first mandate, while LFI came in with only 17 seats. It is not considered certain that the left will win through the Union. Only 70 to 90 seats in total are assumed. The far-right could get up to 95 seats if RN does not combine with the other far-right. The Republicans are likely to get 35 to 65 seats.
However, Mélenchon’s plans also met with criticism from numerous Socialists and Greens. Former Prime Minister Bernard Cazeneuve even announced his intention to leave the Socialist party, reasoning: “The independence of the Republic has never meant breaking its military alliances or coming to terms with authoritarian regimes or dictatorships.” The reorientation of EU policy could only destroy the European project. Former President François Hollande also warned that the alliance would call into question European commitment. Green presidential candidate Yannick Jadot declared, “That would be the end of the EU.”
Several EU countries are calling for mandatory solar roofs on certain buildings in the EU in order to become independent of Russian energy more quickly. In a letter to the EU Commission on Thursday, several energy ministers inside proposed a solar law within the REPowerEU plan. “Every photovoltaic plant immediately and directly reduces our energy dependence on Russia,” they wrote. At the same time, there would be less exposure to high electricity prices, and climate-damaging greenhouse gases would be reduced.
The letter, is available to Europe.Table, was signed by Austria, Belgium, Lithuania, Luxembourg, and Spain. The five countries demand that administrative buildings, supermarkets, flat roofs, and industrial plants be mandatorily equipped with photovoltaic systems. Solar roofs should also become the norm for new as well as renovated houses.
For example, at least 70 million solar roofs could be installed in the EU by 2030, generating 1100 terawatt-hours of electricity and creating local jobs, the letter says. By comparison, photovoltaic systems in Germany produced about 48 terawatt-hours of electricity last year, according to the Fraunhofer Institute.
In addition, more money from the EU budget must be made available for the expansion, the energy ministers demand. The EU Commission should analyze exactly what investments and research are needed in the EU to boost solar energy as quickly as possible.
Germany has not signed despite a similar announcement in the coalition agreement (p. 44). Sources in the EU Parliament said that Robert Habeck initially agreed to sign, but then canceled.
On May 18, the EU Commission plans to present the concrete plan of the REPowerEU package to become independent of Russian energy supplies as quickly as possible. dpa/luk
Even after an intensive week of negotiations on ETS reform, a compromise is still not in sight. On Wednesday, the rapporteurs negotiated until well after midnight at the so-called shadow meeting – apparently without success. And the negotiations continued on Thursday. The key sticking points have not yet been resolved.
According to insiders, the particularly difficult negotiations on the introduction of a second emissions trading scheme for road transport and heating buildings (ETS 2) failed to produce any convergence. It is still unclear whether and when ETS 2 will be introduced and to what extent its proceeds will be used for social compensation.
In the CBAM, according to insiders, there is a majority of Social Democrats, Greens, Liberals and Leftists who want to see the border adjustment mechanism fully in place already by 2030, while the free CO2 allowance allocations for industry would be eliminated. According to insiders, the conservative EPP around the main rapporteur Peter Liese wants to see the CBAM fully in place by 2033 at the earliest.
Next Tuesday, the last so-called shadow meeting of the rapporteurs will take place – possibly the last chance to find a compromise. The following week (May 16-17), the report is to be voted on in the lead ENVI committee. If no agreement is reached before then, Peter Liese’s report risks going to the vote without a majority.
According to insiders, the German government wants to improve the enforcement of sanctions against Russia with a package of measures before the summer break. In the first of two parts of the planned legislative package, cooperation between the relevant authorities is to be intensified. This is intended to improve the agencies’ access to information already available elsewhere.
Their responsibilities will also be expanded, according to government sources. There will also be better opportunities to identify and seize assets. Sanctioned persons will have to disclose their assets under the threat of fines and penalties.
The draft for a so-called formulation aid is in the final vote within the government. According to Federal Finance Minister Christian Lindner, the cabinet is expected to give its approval by Monday at the latest. The first part of the bill should then be through parliament by the summer break. The wording aid for the parliamentary groups of the traffic light coalition is intended to speed up the legislative process.
“We actually need a central authority,” said a government representative. However, this would not be feasible in the short time available. Therefore, gaps in the legislation should be closed quickly in order to effectively enforce the sanctions imposed by the EU against Russian individuals and companies. Among other things, asset freezes and travel restrictions were imposed after the Russian attack on Ukraine.
A task force set up in mid-March is to ensure enforcement and has submitted proposals for the planned changes to the law. In the second part, measures are to be implemented for which the government needs more time. The focus here is on structural reforms. However, a draft is to be launched before the end of the year.
According to government representatives, asset tracing reaches its limits when oligarchs disguise their assets through nested corporate structures. For this reason, a central coordination office is planned. There will also be a register for assets of unclear origin and for sanctioned assets. A reporting obligation for sanctions violations is to be added to the Money Laundering Act, and a whistleblower office is to be set up. rtr
German Chancellor Olaf Scholz wants to supply Eastern European EU countries without ports on the North and Baltic Seas with LNG gas. Germany will show solidarity when it comes to supplying all EU states with alternatives to Russian gas, Scholz said Thursday after a meeting with Czech Prime Minister Petr Fiala in Berlin. Fiala said Scholz had assured him that the Czech Republic could be supplied via the liquefied natural gas terminals planned by Germany. This is a very important statement. The Czech Republic is more than 95 percent dependent on Russian pipeline gas.
What exactly the cooperation would look like would have to be seen, Scholz said when asked whether the Czech Republic could also participate in the planned LNG terminal in Wilhelmshaven. Fiala stressed that a country has always been among the supporters of the toughest sanctions against Russia, because it is the only way to impress the Russian leadership. But one needs help with the conversion.
The Düsseldorf-based energy group Uniper, the German government and the state of Lower Saxony had on Thursday concretized their plans to build a terminal for liquefied natural gas (LNG) in Wilhelmshaven. Uniper announced in the Lower Saxony port city, in the presence of Federal Economics Minister Robert Habeck and Lower Saxony’s Energy Minister Olaf Lies, that it would invest €65 million as the terminal’s builder and operator. rtr
The German government wants to encourage chip companies to invest in Europe and Germany with €14 billion. This was said yesterday by Federal Minister of Economic Affairs Robert Habeck (Greens) at an event of family entrepreneurs in Hanover. The semiconductor shortage is a massive problem, he said, which is why the state is helping here with billions. “That’s really a lot of money.”
Habeck thus officially confirmed for the first time the planned funding volume, which Europe.Table had already reported on in March. However, the ongoing budget preparation by the traffic light coalition has triggered considerable uncertainty in the semiconductor industry, as it allows hardly any transparency about the planned sums. The 32 companies that want to participate in the planned second Important Project of Common European Interest (IPCEI) for microelectronics in particular are waiting for clarity.
The US company Intel, which plans to invest €17 billion in the construction of two semiconductor plants in Magdeburg, can count on massive support from the federal budget. According to government and industry circles, the company has been promised funding of around €7 billion. Habeck said there should be other examples like Magdeburg. He hopes for momentum here. tho/rtr
In its new compromise proposals on Articles 70 to 85 of the AI Regulation, the French EU Council Presidency proposes to give member states an additional year for implementation. Accordingly, the Presidency wants to extend the general deadline for the application of the Regulation from 24 to 36 months after its entry into force in order to give member states and companies more time to prepare. The deadline for the establishment of notified bodies is also to be extended from three to twelve months.
The French Council Presidency would also like to see changes to the sanctions provisions. On the one hand, the sanctions provided must be effective, proportionate, and dissuasive. On the other hand, the size and interests of SMEs, including start-ups, and their economic viability must be taken into account.
Moreover, the confidentiality requirements, including business confidentiality, should apply not only to national authorities and Notified Bodies, but also to the Commission, the future AI Committee, and all persons contributing to the implementation of the Regulation. ank
The EU regulation for COVID-19 digital certificates is to be maintained for another year, until June 2023. The EP plenary approved the negotiations on the extension of the certificates for EU citizens and third-country nationals. Negotiations with the Council can begin immediately, according to the Parliament, so that the rules can enter into force before the current regime expires on June 30. This should ensure that EU citizens can benefit from their right to free movement regardless of how the COVID-19 pandemic develops.
If Parliament has its way, member states should only impose additional restrictions on COVID-19 certificate holders if absolutely necessary. And even then, they should be limited and proportionate, based on the latest scientific advice from the European Center for Disease Prevention and Control (ECDC) and the EU Health Security Committee.
They also call on the Commission to examine six months after the extension whether the COVID certificates are then still necessary and proportionate. MEPs want to keep the period during which the regulation applies as short as possible. As soon as the epidemiological situation allows, the regulation should be suspended. ank
Mario Draghi is in favor. Will Emmanuel Macron also support a revision of the EU treaties, with the aim of burying the unanimity rule in particular? We will get the answer – perhaps – on May 9 at the European Parliament in Strasbourg, where the French president will speak at the closing ceremony of the Conference on the Future of Europe.
Over the past twelve months, 800 randomly selected citizens have debated digitally submitted ideas as well as inputs from national events and citizens’ forums in the conference plenary (also known as CoFoE in EU jargon). The result of this process is 49 reform proposals integrating over 300 measures in nine thematic areas: Environment, Health, Economy/Social Justice, Europe in the World, Values/Rule of Law, Digital Transformation, European Democracy, Migration, and Education/Youth/Sport.
These recommendations are part of the final report, which will be handed over to Ursula von der Leyen, EU Parliament President Roberta Metsola and Emmanuel Macron at a ceremony in Strasbourg on May 9. France holds the rotating EU Council presidency until June 30. The French president plans to give a speech on Europe there – on the same day that he will meet German Chancellor Olaf Scholz on his first official state visit after his re-election. Will there be a second Sorbonne speech?
In Brussels, MEP Pascal Durand (Renew), a member of the European Parliament’s Committee on Constitutional Affairs, is looking into just that. He exchanges views with Clément Beaune, Secretary of State for European Affairs in Paris, on Macron’s speech on May 9.
Durand does not want to reveal the content of the speech in an interview with Europe.Table, but he dampens expectations: One should “not confuse the roles” – that of Emmanuel Macron as President of the Council, and that of the President of the French Republic. “As president of the member state that currently holds the rotating presidency of the European Union, it is difficult for him to make a difference,” he explains.
For the MEP, however, the conference itself has opened a new path “linking representative and participatory democracy.” It is of strategic importance, in his opinion, because the conference takes place at a time when citizens have a “complex” relationship with participatory democracy. However, it is also because of the Covid crisis and the Russian invasion of Ukraine, which have painfully brought the necessary reform of EU institutions back into the spotlight. Brussels is now looking for its magic potion to join forces.
According to Pascal Durand, one of the big criticisms from citizens is the unanimity principle in the Council. After all, he said, “no democracy works with the unanimity rule.” As a reminder, the Council must vote unanimously in a number of areas that member states consider sensitive. For example, in the Common Foreign and Security Policy, EU enlargement, budget issues or the granting of new rights to EU citizens.
For Italian Prime Minister Draghi, the European Union must be reformed so that the project can meet the current challenges. He urged the member states before the European Parliament on Tuesday to consider a recasting of the treaties so that the common project has the political weapons to influence the international stage.
“If this requires the start of a path that will lead to the revision of the treaties, this should be embraced with courage and confidence,” Draghi stressed – taking particular aim at the unanimity principle. Negotiations on the sixth sanctions package proposed by the Commission this week are a good example of institutional deadlock. EU diplomats are meeting today to possibly give the green light to the new package against Russia. But there is opposition, especially from Hungary and Slovakia, to an oil embargo, despite long transition periods.
Ambitions have to be lowered again and again in order to find a compromise among governments. That irritates many in Brussels. “Officially, the Council is made up of 27 member states, but you can tell it’s really 28 or 29,” says an EU official who regularly attends EU summits. After all, “China and Russia also invite themselves to Council meetings.” That’s aimed at Hungary.
Where do we go from here? “The question is whether the 49 recommendations will not disappear into an institutional drawer,” says Pascal Durand. If the representatives of the three EU institutions did not follow up on the recommendations formulated by the citizens, “then this conference will be a failure.” The European Parliament is pushing the pace. On Wednesday, MEPs adopted a declaration aimed at ensuring that the results of the citizens’ dialogue are implemented. MEPs want to launch a constitutional convention for a comprehensive reform of the European Union.
This includes, for example, the demands to abandon the principle of unanimity in almost all policy areas (yes, again), furthermore to grant the European Parliament a right of initiative for legislative proposals as well as for significantly more EU competencies in the areas of health and social policy.
This requires amendments to the EU treaties. They can be amended by a constitutional convention in which representatives of the national parliaments and governments, as well as the European Parliament and the Commission, participate. The last far-reaching reform of the European Union took place in 2007 with the signing and subsequent implementation of the Lisbon Treaty. That was a long time ago.
While oil from Russia is no longer wanted, there are fears about Russian gas supplies. German industry is still too dependent to be able to cope with a shortfall. The demand for subsidies from the federal government for energy-saving measures in building renovations has increased to such an extent that the pots ran dry faster than expected. Manuel Berkel has analyzed why further applications can no longer be approved for the time being and why this is hitting the industry particularly hard at the present time.
Yesterday, several EU countries sent a letter to the Commission calling for mandatory solar rooves. Photovoltaic systems are to be installed on certain buildings on a mandatory basis in order to achieve the currently pressing targets. Not among the senders: Germany.
There is hacking and stalling everywhere you look. A compromise is also not in sight in the negotiations on ETS reform. Agreement on the introduction of the second ETS continues to be particularly difficult.
In France, on the other hand, everything happened surprisingly quickly: shortly after the presidential election, in which Jean-Luc Mélenchon narrowly missed the runoff, he is now forming a strong left-wing alliance with the Socialists and Greens against Emmanuel Macron in the run-up to the parliamentary elections. Tanja Kuchenbecker explains why this alliance could pose a threat to the EU.
Have a great weekend!
After the stop-and-go on federal funding for building renovation, the traffic light coalition cannot meet demand for another energy-saving program fast enough. For the time being, subsidies for the Energy and Resource Efficiency in the Economy (EEW) program would only be paid out for projects that have already been approved. This was explained by a spokesman for the Federal Office of Economics and Export Control (BAFA) on Thursday evening at the request of Europe.Table. However, the authority does not want to speak of a funding stop.
With the program, BAFA and KfW promote the acquisition of energy-efficient new plants, the optimization of existing processes, and the conversion of heat applications in industry and commerce to renewable energies. According to the Ministry of Economics, more than 11,000 applications with a total funding volume of €567 million were approved last year.
The background to the current delays is the rapid increase in interest from companies as a result of high energy costs and the ongoing budget negotiations. Following the change of government, the federal budget for 2022 has not yet been passed. “The ‘Energy and Resource Efficiency in Business’ (EEW) program is therefore under provisional budgetary management. For the EEW program, therefore, only projects that have already been approved will be paid out for the time being,” BAFA Europe.Table announced.
The authority went on to explain: “Additional funding for the issuance of new allocation notices is only available to a reduced extent until the federal budget comes into force. There can therefore be no question of a funding freeze.”
It remained open with this answer whether the Bundestag has already released additional subsidies despite the still pending adoption of the entire budget. In the morning, the responsible head of department in the Federal Ministry of Economics, Oliver Bornkamm, had still spoken at the Berlin Energy Days that it would only be possible to “put a stamp on the applications” once the Budget Committee had approved a further so-called over-budget commitment appropriation for additional funding.
In any case, the association of companies that earn their money from energy efficiency is alarmed. “The beginning of the legislative period coincides extremely unfavorably with acutely high demand in all sectors of the economy. It is therefore all the more important that the regular federal budget is in place soon,” says Tatjana Ruhl of the German Business Initiative for Energy Efficiency (DENEFF). At the Berlin Energy Days on Wednesday, DENEFF had already criticized the fact that the funds from the support program were currently being used primarily to draw up transformation concepts for companies – but not yet for investments that would quickly bring about energy or resource savings.
For the economy, the faltering award comes at an inopportune time. A few days ago, calculations by the Jülich Research Center revealed that several energy-intensive industries and power plants in the EU would have to be cut off from gas for weeks if Russian supplies were reduced by two-thirds and gas storage facilities were to be filled until winter.
However, some investments in saving energy or switching to renewable energies are worthwhile even without subsidies, given the current high gas and oil prices. “Many measures that companies previously rejected are now paying off,” said Paul Fay of the Association of Energy Efficiency Networks Germany (AGEEN) at the panel discussion. “We just have to hope that companies survive.”
The need for information also shows how threatening the situation is for many companies. Some companies are acutely preoccupied with securing their energy supplies in the first place and have no time to plan efficiency measures, said Steffen Joest of the Initiative for Energy Efficiency and Climate Protection Networks (IEEKN). Other companies were looking all the more for advice. Information is now being prepared on fast-acting optimizations in energy consumption that do not require major investments.
According to Bornkamm, the German Federal Ministry of Economics is currently examining how the EEW program can be further developed, in particular, to reduce gas consumption. Accordingly, new funding could be provided for deep geothermal energy, which can also supply renewable heat beyond 100 degrees, concentrating solar thermal energy and mobile heat storage systems.
Jean-Luc Mélenchon came third in the presidential election. While the Socialists and Greens did poorly, he finished behind the far-right Marine Le Pen and narrowly missed the runoff. Under this condition, he is now seeking to unite the fragmented left.
The Socialists and Greens have backed the line of Mélenchon and his party La France Insoumise (LFI, Indomitable France). Mélenchon’s line: anti-EU and anti-capitalist. Together, they announced a “new ecological and social people’s union” and are sacrificing their European ideals in order to continue playing politics. For Mélenchon stands for a Europe of nations and threatens with “European disobedience”.
The nationalist current is thus taking over the left in France and moving it to the far-left fringe. If the new alliance of the left wins a majority of the 577 seats in the parliamentary elections on June 12 and 19, Mélenchon could repeatedly run afoul of the pro-European Macron as prime minister.
First Mélenchon won over the Communists (PCF) and Greens, then the Socialists, whose party council was to decide officially on Thursday evening whether to enter into the alliance. An agreement with LFI had already preceded. Together, they want to fight the “injustice” of Macron’s policies, make France more social, and prevent the extreme right from taking power. The Greens were able to win over Mélenchon with his climate policy program, and they all agree on raising the minimum wage.
For Mélenchon, Brussels is the capitalist opponent; he has always criticized Germany as a partner. He has become somewhat more moderate in tone in recent days so as not to frighten his partners, but he does not rule out breaking EU law if necessary. Above all, the debt rules are a thorn in his side; after all, he needs a lot of money to finance his social plans, including retirement at 60. He also disagrees with NATO; he wants to pull France out. Mélenchon came under criticism during the Ukraine war because he had previously shown himself to be too Russia-friendly. He was quick to condemn the attack on Ukraine, however. Nevertheless, his desire to break away from the US and NATO is clear.
If the now united left gains a majority, it will be difficult for Macron, who will have to agree on legislation and ministerial posts with his political opponents. This is called “cohabitation” in France. Macron must hope to hold a majority in parliament with his allies, and could also make deals with the right. Macron’s LREM party, which wants to call itself “Renaissance” in the future, is already joining forces with François Bayrou’s MoDEM and Edouard Philippe’s Horizons.
However, political experts believe that Mélenchon’s momentum, which has been building at the national level, will wane at the regional level. This is because there, citizens usually vote for the candidate they already know. In the ranks of LREM, many also hope that a Prime Minister Mélenchon will scare off the French. According to polls, around six out of ten French people are in favor of cohabitation, but only a minority are in favor of a Prime Minister Mélenchon.
As in the presidential elections, there will be two rounds of voting. If no one gets an absolute majority in the first round of the parliamentary elections, all those who have achieved at least 12.5 percent of the registered voters advance to the second round. A relative majority is then sufficient to claim victory. In this election, it is important to have alliance partners.
Polls are less meaningful than in presidential elections because they involve local politicians. According to the latest Harris Interactive poll, LREM would get 24 percent in the first round, Marine Le Pen’s RN (Rassemblement National) 23 percent, and Mélenchon’s LFI 19 percent. The Union of the Left could collectively reach 28 percent, LREM alone 24 percent, Le Pen’s far-right 23 percent, and the Republicans 8 percent. So far, there are only polls for the first round of voting.
However, the polling institute Harris Interactive vaguely estimates that LREM, with alliance partners, could still end up with 336 to 378 seats, i.e., an absolute majority. This would eliminate the danger of Mélenchon as Prime Minister for Europe. LREM initially had 306 seats in Macron’s first mandate, while LFI came in with only 17 seats. It is not considered certain that the left will win through the Union. Only 70 to 90 seats in total are assumed. The far-right could get up to 95 seats if RN does not combine with the other far-right. The Republicans are likely to get 35 to 65 seats.
However, Mélenchon’s plans also met with criticism from numerous Socialists and Greens. Former Prime Minister Bernard Cazeneuve even announced his intention to leave the Socialist party, reasoning: “The independence of the Republic has never meant breaking its military alliances or coming to terms with authoritarian regimes or dictatorships.” The reorientation of EU policy could only destroy the European project. Former President François Hollande also warned that the alliance would call into question European commitment. Green presidential candidate Yannick Jadot declared, “That would be the end of the EU.”
Several EU countries are calling for mandatory solar roofs on certain buildings in the EU in order to become independent of Russian energy more quickly. In a letter to the EU Commission on Thursday, several energy ministers inside proposed a solar law within the REPowerEU plan. “Every photovoltaic plant immediately and directly reduces our energy dependence on Russia,” they wrote. At the same time, there would be less exposure to high electricity prices, and climate-damaging greenhouse gases would be reduced.
The letter, is available to Europe.Table, was signed by Austria, Belgium, Lithuania, Luxembourg, and Spain. The five countries demand that administrative buildings, supermarkets, flat roofs, and industrial plants be mandatorily equipped with photovoltaic systems. Solar roofs should also become the norm for new as well as renovated houses.
For example, at least 70 million solar roofs could be installed in the EU by 2030, generating 1100 terawatt-hours of electricity and creating local jobs, the letter says. By comparison, photovoltaic systems in Germany produced about 48 terawatt-hours of electricity last year, according to the Fraunhofer Institute.
In addition, more money from the EU budget must be made available for the expansion, the energy ministers demand. The EU Commission should analyze exactly what investments and research are needed in the EU to boost solar energy as quickly as possible.
Germany has not signed despite a similar announcement in the coalition agreement (p. 44). Sources in the EU Parliament said that Robert Habeck initially agreed to sign, but then canceled.
On May 18, the EU Commission plans to present the concrete plan of the REPowerEU package to become independent of Russian energy supplies as quickly as possible. dpa/luk
Even after an intensive week of negotiations on ETS reform, a compromise is still not in sight. On Wednesday, the rapporteurs negotiated until well after midnight at the so-called shadow meeting – apparently without success. And the negotiations continued on Thursday. The key sticking points have not yet been resolved.
According to insiders, the particularly difficult negotiations on the introduction of a second emissions trading scheme for road transport and heating buildings (ETS 2) failed to produce any convergence. It is still unclear whether and when ETS 2 will be introduced and to what extent its proceeds will be used for social compensation.
In the CBAM, according to insiders, there is a majority of Social Democrats, Greens, Liberals and Leftists who want to see the border adjustment mechanism fully in place already by 2030, while the free CO2 allowance allocations for industry would be eliminated. According to insiders, the conservative EPP around the main rapporteur Peter Liese wants to see the CBAM fully in place by 2033 at the earliest.
Next Tuesday, the last so-called shadow meeting of the rapporteurs will take place – possibly the last chance to find a compromise. The following week (May 16-17), the report is to be voted on in the lead ENVI committee. If no agreement is reached before then, Peter Liese’s report risks going to the vote without a majority.
According to insiders, the German government wants to improve the enforcement of sanctions against Russia with a package of measures before the summer break. In the first of two parts of the planned legislative package, cooperation between the relevant authorities is to be intensified. This is intended to improve the agencies’ access to information already available elsewhere.
Their responsibilities will also be expanded, according to government sources. There will also be better opportunities to identify and seize assets. Sanctioned persons will have to disclose their assets under the threat of fines and penalties.
The draft for a so-called formulation aid is in the final vote within the government. According to Federal Finance Minister Christian Lindner, the cabinet is expected to give its approval by Monday at the latest. The first part of the bill should then be through parliament by the summer break. The wording aid for the parliamentary groups of the traffic light coalition is intended to speed up the legislative process.
“We actually need a central authority,” said a government representative. However, this would not be feasible in the short time available. Therefore, gaps in the legislation should be closed quickly in order to effectively enforce the sanctions imposed by the EU against Russian individuals and companies. Among other things, asset freezes and travel restrictions were imposed after the Russian attack on Ukraine.
A task force set up in mid-March is to ensure enforcement and has submitted proposals for the planned changes to the law. In the second part, measures are to be implemented for which the government needs more time. The focus here is on structural reforms. However, a draft is to be launched before the end of the year.
According to government representatives, asset tracing reaches its limits when oligarchs disguise their assets through nested corporate structures. For this reason, a central coordination office is planned. There will also be a register for assets of unclear origin and for sanctioned assets. A reporting obligation for sanctions violations is to be added to the Money Laundering Act, and a whistleblower office is to be set up. rtr
German Chancellor Olaf Scholz wants to supply Eastern European EU countries without ports on the North and Baltic Seas with LNG gas. Germany will show solidarity when it comes to supplying all EU states with alternatives to Russian gas, Scholz said Thursday after a meeting with Czech Prime Minister Petr Fiala in Berlin. Fiala said Scholz had assured him that the Czech Republic could be supplied via the liquefied natural gas terminals planned by Germany. This is a very important statement. The Czech Republic is more than 95 percent dependent on Russian pipeline gas.
What exactly the cooperation would look like would have to be seen, Scholz said when asked whether the Czech Republic could also participate in the planned LNG terminal in Wilhelmshaven. Fiala stressed that a country has always been among the supporters of the toughest sanctions against Russia, because it is the only way to impress the Russian leadership. But one needs help with the conversion.
The Düsseldorf-based energy group Uniper, the German government and the state of Lower Saxony had on Thursday concretized their plans to build a terminal for liquefied natural gas (LNG) in Wilhelmshaven. Uniper announced in the Lower Saxony port city, in the presence of Federal Economics Minister Robert Habeck and Lower Saxony’s Energy Minister Olaf Lies, that it would invest €65 million as the terminal’s builder and operator. rtr
The German government wants to encourage chip companies to invest in Europe and Germany with €14 billion. This was said yesterday by Federal Minister of Economic Affairs Robert Habeck (Greens) at an event of family entrepreneurs in Hanover. The semiconductor shortage is a massive problem, he said, which is why the state is helping here with billions. “That’s really a lot of money.”
Habeck thus officially confirmed for the first time the planned funding volume, which Europe.Table had already reported on in March. However, the ongoing budget preparation by the traffic light coalition has triggered considerable uncertainty in the semiconductor industry, as it allows hardly any transparency about the planned sums. The 32 companies that want to participate in the planned second Important Project of Common European Interest (IPCEI) for microelectronics in particular are waiting for clarity.
The US company Intel, which plans to invest €17 billion in the construction of two semiconductor plants in Magdeburg, can count on massive support from the federal budget. According to government and industry circles, the company has been promised funding of around €7 billion. Habeck said there should be other examples like Magdeburg. He hopes for momentum here. tho/rtr
In its new compromise proposals on Articles 70 to 85 of the AI Regulation, the French EU Council Presidency proposes to give member states an additional year for implementation. Accordingly, the Presidency wants to extend the general deadline for the application of the Regulation from 24 to 36 months after its entry into force in order to give member states and companies more time to prepare. The deadline for the establishment of notified bodies is also to be extended from three to twelve months.
The French Council Presidency would also like to see changes to the sanctions provisions. On the one hand, the sanctions provided must be effective, proportionate, and dissuasive. On the other hand, the size and interests of SMEs, including start-ups, and their economic viability must be taken into account.
Moreover, the confidentiality requirements, including business confidentiality, should apply not only to national authorities and Notified Bodies, but also to the Commission, the future AI Committee, and all persons contributing to the implementation of the Regulation. ank
The EU regulation for COVID-19 digital certificates is to be maintained for another year, until June 2023. The EP plenary approved the negotiations on the extension of the certificates for EU citizens and third-country nationals. Negotiations with the Council can begin immediately, according to the Parliament, so that the rules can enter into force before the current regime expires on June 30. This should ensure that EU citizens can benefit from their right to free movement regardless of how the COVID-19 pandemic develops.
If Parliament has its way, member states should only impose additional restrictions on COVID-19 certificate holders if absolutely necessary. And even then, they should be limited and proportionate, based on the latest scientific advice from the European Center for Disease Prevention and Control (ECDC) and the EU Health Security Committee.
They also call on the Commission to examine six months after the extension whether the COVID certificates are then still necessary and proportionate. MEPs want to keep the period during which the regulation applies as short as possible. As soon as the epidemiological situation allows, the regulation should be suspended. ank
Mario Draghi is in favor. Will Emmanuel Macron also support a revision of the EU treaties, with the aim of burying the unanimity rule in particular? We will get the answer – perhaps – on May 9 at the European Parliament in Strasbourg, where the French president will speak at the closing ceremony of the Conference on the Future of Europe.
Over the past twelve months, 800 randomly selected citizens have debated digitally submitted ideas as well as inputs from national events and citizens’ forums in the conference plenary (also known as CoFoE in EU jargon). The result of this process is 49 reform proposals integrating over 300 measures in nine thematic areas: Environment, Health, Economy/Social Justice, Europe in the World, Values/Rule of Law, Digital Transformation, European Democracy, Migration, and Education/Youth/Sport.
These recommendations are part of the final report, which will be handed over to Ursula von der Leyen, EU Parliament President Roberta Metsola and Emmanuel Macron at a ceremony in Strasbourg on May 9. France holds the rotating EU Council presidency until June 30. The French president plans to give a speech on Europe there – on the same day that he will meet German Chancellor Olaf Scholz on his first official state visit after his re-election. Will there be a second Sorbonne speech?
In Brussels, MEP Pascal Durand (Renew), a member of the European Parliament’s Committee on Constitutional Affairs, is looking into just that. He exchanges views with Clément Beaune, Secretary of State for European Affairs in Paris, on Macron’s speech on May 9.
Durand does not want to reveal the content of the speech in an interview with Europe.Table, but he dampens expectations: One should “not confuse the roles” – that of Emmanuel Macron as President of the Council, and that of the President of the French Republic. “As president of the member state that currently holds the rotating presidency of the European Union, it is difficult for him to make a difference,” he explains.
For the MEP, however, the conference itself has opened a new path “linking representative and participatory democracy.” It is of strategic importance, in his opinion, because the conference takes place at a time when citizens have a “complex” relationship with participatory democracy. However, it is also because of the Covid crisis and the Russian invasion of Ukraine, which have painfully brought the necessary reform of EU institutions back into the spotlight. Brussels is now looking for its magic potion to join forces.
According to Pascal Durand, one of the big criticisms from citizens is the unanimity principle in the Council. After all, he said, “no democracy works with the unanimity rule.” As a reminder, the Council must vote unanimously in a number of areas that member states consider sensitive. For example, in the Common Foreign and Security Policy, EU enlargement, budget issues or the granting of new rights to EU citizens.
For Italian Prime Minister Draghi, the European Union must be reformed so that the project can meet the current challenges. He urged the member states before the European Parliament on Tuesday to consider a recasting of the treaties so that the common project has the political weapons to influence the international stage.
“If this requires the start of a path that will lead to the revision of the treaties, this should be embraced with courage and confidence,” Draghi stressed – taking particular aim at the unanimity principle. Negotiations on the sixth sanctions package proposed by the Commission this week are a good example of institutional deadlock. EU diplomats are meeting today to possibly give the green light to the new package against Russia. But there is opposition, especially from Hungary and Slovakia, to an oil embargo, despite long transition periods.
Ambitions have to be lowered again and again in order to find a compromise among governments. That irritates many in Brussels. “Officially, the Council is made up of 27 member states, but you can tell it’s really 28 or 29,” says an EU official who regularly attends EU summits. After all, “China and Russia also invite themselves to Council meetings.” That’s aimed at Hungary.
Where do we go from here? “The question is whether the 49 recommendations will not disappear into an institutional drawer,” says Pascal Durand. If the representatives of the three EU institutions did not follow up on the recommendations formulated by the citizens, “then this conference will be a failure.” The European Parliament is pushing the pace. On Wednesday, MEPs adopted a declaration aimed at ensuring that the results of the citizens’ dialogue are implemented. MEPs want to launch a constitutional convention for a comprehensive reform of the European Union.
This includes, for example, the demands to abandon the principle of unanimity in almost all policy areas (yes, again), furthermore to grant the European Parliament a right of initiative for legislative proposals as well as for significantly more EU competencies in the areas of health and social policy.
This requires amendments to the EU treaties. They can be amended by a constitutional convention in which representatives of the national parliaments and governments, as well as the European Parliament and the Commission, participate. The last far-reaching reform of the European Union took place in 2007 with the signing and subsequent implementation of the Lisbon Treaty. That was a long time ago.