the ruble is no longer rolling and Putin’s currency reserves seem to be running out – now he wants to invent an obligation that gas may only be paid for in rubles. The details are still unclear. The Russian authorities now have one week to work out the details of this breach of contract. The federal government is examining the consequences but points out that the contracts were concluded with private companies.
The marathon summit in Brussels begins today, for which US President Joe Biden is also expected. It is questionable what he will bring with him. New sanctions against Russia? An energy partnership with Europe? Biden will attend the special NATO summit, then a meeting of the G7, and then the EU summit as well. Eric Bonse and Falk Steiner took a look at what’s in store for the next two days.
In the run-up to the EU summit, the Commission has named emergency measures on how member states can respond to high energy prices. The measures range from the implementation of an aggregator model to regulatory intervention in the energy markets. In addition, the EU Commission has presented a proposal for minimum gas storage volumes in the EU. Lukas Scheid analyzes the various options to be discussed on Thursday and Friday.
The final trialogue on the Digital Markets Act is about to begin. But many questions in the scope and governance sections are still open. However, the negotiators from the European Parliament, the Council, and the EU Commission have the most work to do in the area of gatekeepers. Till Hoppe has listed the questions that still need to be clarified.
A broad consensus and a big unknown: that’s how EU diplomats describe the situation ahead of an unusual marathon summit in Brussels, dominated by Russia’s war of aggression in Ukraine. There is broad consensus that the EU, like NATO and the G7, remains fully behind Ukraine. After the attack, everything must be done to help the country and defeat Kremlin leader Vladimir Putin, Council President Charles Michel told CNN.
“That means, first and foremost, we have to make sure that Putin is defeated. That has to be the current goal. This is a question of security for the future of Europe and for the future of the world.” It is a matter of “reaffirming our unity,” an EU official added. The big unknown is what US President Joe Biden will have in his luggage when he comes to Brussels on Thursday. Biden will first attend a special NATO summit, then a meeting of the G7 under the German presidency – and finally the EU summit, which begins in the afternoon.
He expects the US to impose new sanctions against Russia, an EU diplomat said. This would put pressure on the EU to also tighten its punitive measures. It is also conceivable, however, that Biden will make the EU an offer of cooperation on energy supplies. Commission President Ursula von der Leyen said she hoped for an agreement on additional supplies of liquefied natural gas (LNG). She will discuss with Biden on Thursday how US supplies to the EU could be given priority, the CDU politician told the European Parliament. “We are seeking a commitment on additional supplies for the next two winters.”
Von der Leyen said nothing about possible new sanctions. The Europeans have already adopted four sanctions packages. However, no embargo has yet been imposed on oil and gas deliveries from Russia, as is the case in the United States. In addition to Ukraine, Poland and Lithuania have also spoken out in favor of an import ban. Germany, Hungary, and some other EU states, however, oppose an energy embargo. The German government’s position remains unchanged, Chancellor Olaf Scholz said on Tuesday after a meeting with EU Parliament President Roberta Metsola in Berlin.
Within the framework of both the G7 and the EU, sanctions would now focus more on enforcement and the avoidance of circumvention, it was said in Berlin on Wednesday. Sanctions did not prevent escalation because they had no direct impact on the war effort, the reading in the German capital said. The sanctions packages would now have to be tested for their effectiveness. However, if further steps were necessary, they would be taken. The German government does not currently expect an embargo on Russian oil and gas.
Berlin expects intensive discussions, particularly on energy issues. On the one hand, the EU’s toolbox is praised, especially the possibility of addressing social hardships. On the other hand, Berlin warns against unintended interactions and isolated solutions – the further integration of the energy markets is now important. Remaining realistic is the motto – for example, also with regard to joint LNG purchasing, which is seen as fundamentally positive. But neither the amount of LNG available nor the transport capacities would be changed by such a project.
Berlin remains extremely skeptical about interventions in energy market pricing, such as those demanded by Spain. The German government’s argument is based on the fact that the energy sector is primarily made up of private-sector players who often operate across national borders. All that can be done is to provide them with a framework. With a view to the announcements expected in April from the German government on the expansion of renewable energies, the so-called Easter package, the importance of the European Fit for 55 package was once again emphasized. The goal is to permanently reduce dependence on Russian energy. Renewables are a particularly effective means of achieving this.
The draft conclusions of the EU summit reflect the numerous reservations. In the area of energy policy, it only talks about joint oil and gas purchases. “Looking ahead to next winter, member states and the Commission will urgently… cooperate on joint purchases of gas, LNG, and hydrogen,” it says. The draft also provides for a new solidarity fund for Ukraine. A donor conference is to be organized for this purpose. New arms deliveries worth up to €500 million are also planned. The money is to come from the EU’s so-called Peace Facility. Two weeks ago, €450 million had already been released.
In addition, the heads of state and government want to adopt the new security strategy. The “Strategic Compass” addresses the “Russian aggression” in Ukraine and analyzes new threats, such as disinformation and cyberattacks. It also envisages a rapid EU intervention force of up to 5,000 troops. The German government has offered to provide the core of this new unit in the first year. However, the EU force is not expected to be operational until 2025. It will probably not be able to intervene in Ukraine. With Falk Steiner
In order to cushion high energy prices, the EU Commission on Wednesday outlined possible emergency measures, which it, however, associates with high costs and further disadvantages. The options are not binding and are to be discussed at the EU summit this week.
For example, one option could be to provide indirect support to consumers and businesses, for example through an aggregator model. Here, member states create a public body that buys energy on favorable terms and passes it on to certain consumer groups at prices below the market level by subsidizing the difference between retail prices and wholesale prices.
Other options include intervening directly in wholesale electricity markets by compensating electricity generators for part of their high fuel costs so that they lower their offer price on the wholesale market. It would also be possible to cap the price of electricity on the wholesale market by setting a reference benchmark and subsidizing the difference with the offer price.
However, according to the Commission, in addition to high costs, these options pose the risk of distorting competition as well as a risk to cross-border electricity trade and thus also to security of supply. Neighboring countries could buy electricity in Europe because of the lower prices. Incentives for the reduced use of fossil fuels and the expansion of renewable capacities are also lacking, which is why the Commission questions the climate compatibility of these measures.
The Commission sees another possibility in limiting excessive profits by electricity producers. Contracts for differences could be used to oblige electricity producers to repay profits above a fixed base price. Although this would not lower prices, the revenues could be used to finance direct payments to consumers and companies.
To address the problem of high energy prices at their source – the price of gas – the Commission envisages two options. A price cap for gas only: this would likely reduce consumer prices, but there would be a risk of lower supply volumes from suppliers, which would pose a risk to the security of supply.
The Commission favors the option of joint gas purchases from third countries – as well as LNG or hydrogen. To this end, the Commission wants to set up a task force to negotiate energy partnerships with suppliers. The establishment of such a negotiating group is to be discussed at the EU summit.
The Commission presented a concrete legislative proposal for Europe’s gas storage facilities. The authority is demanding mandatory minimum storage volumes from the operators of gas storage facilities in Europe. In the coming winter, member states must ensure that storage facilities are at least 80 percent full by Nov 1, according to the Commission’s proposal. The Commission also sets interim targets along the way.
Starting in 2023, the minimum fill level will be 90 percent by Nov 1. However, member states are to be given the flexibility to meet this target as late as Dec. 1 if there are technical difficulties, “for example with pipelines […] or with injection facilities.” In addition, the targets are also to be suspended in “EU-wide emergencies” where there is insufficient gas available.
To provide incentives for storage operators, member states are to be able to take “all necessary measures, including financial incentives or compensation payments for market participants.” A complete price reduction on transmission charges at the entry and exit point of storage facilities is also conceivable, according to the Commission.
The proposal also includes requiring storage operators to report levels to national authorities, and member states, in turn, to monitor them monthly and report to the Commission. Operators must also have their facilities certified (Europe.Table reported) to avoid “potential risks from external interference with critical storage infrastructure.” Germany, with 245.3 terawatt-hours, has just under a quarter of the EU’s gas storage capacity.
It is now up to the heads of state and government, and then the EU Parliament, to negotiate the Commission’s proposal and also reach an agreement.
Today, the negotiators from the European Parliament, the Council and the EU Commission will meet on the Digital Markets Act, for the fourth and probably last time. According to the agenda, the meeting is to begin at 3 p.m., but the end remains open. It is likely to be a long meeting: the representatives of the three institutions still have a number of points to clarify.
Thresholds: EP rapporteur Andreas Schwab (CDU/EVP) wants to set the threshold for so-called gatekeeper platforms with €80 billion market capitalization and €8 billion annual turnover higher than the Council (€65 and €6.5 billion). As a possible compromise, €75 and €7.5 billion are emerging here.
Services: Schwab also wants to ensure that virtual assistants and browsers are also considered core platform services and thus fall under the DMA. It is already clear that search engines, social networks, video sharing platforms, messengers, cloud computing services, and advertising platforms, among others, will be included.
The DMA provides for a number of behavioral requirements and prohibitions for digital groups, which the Commission classifies as gatekeepers. The following requirements are still in dispute:
Interoperability: The EP wanted to enforce that gatekeepers must open both their social networks and messenger services to users of competing offerings. However, the Council and the Commission do not consider this feasible for networks such as Facebook, Instagram, and YouTube. The Parliament is likely to give in here: “This is a thick board,” says S&D negotiator René Repasi.
In the case of messenger services, on the other hand, it is becoming apparent that Meta will have to enable other providers to dock with WhatsApp. Users of Signal or Telegram could then also reach contacts on market leader WhatsApp, free of charge and end-to-end encrypted. However, the Commission believes that secure participation in group chats cannot be implemented quickly enough from a technical point of view. The EP is pushing for this function to be added to the DMA as soon as possible.
Personalized advertising: in the EP, the Social Democrats, the Greens, and the Left in particular had insisted on limiting the pooling of personal data, especially for the big advertising marketers Google and Facebook. The compromise now stipulates that the companies must again obtain users’ consent. If they refuse, they must still be allowed to use the respective offer largely without restriction. Still in dispute is the question of whether or not minors may consent to the processing of data for advertising purposes. S&D and Co want to give this group special protection. Repasi emphasizes: “If the Council and the Commission want to weaken the provisions in the DMA, they must support stricter regulations in the DSA. The trilogue on the Digital Services Act, which is running in parallel, is also negotiating how to deal with personalized advertising.
Preferences: The EP wants to be able to force Apple and Google in particular to offer their users more alternatives to their own apps. For example, users should be able to delete preinstalled programs more easily. Still in dispute is for which apps the platforms must also offer selection screens during installation: The Council wants to narrowly limit the list, Schwab, Repasi and Co are pushing for a longer list.
Side-loading: It is clear that consumers will also be able to install alternative app stores on their devices in the future. However, the fourth trilogue still has to clarify what minimum security restrictions the gatekeepers may set for this. Apple in particular had doggedly resisted opening up its app store environment, pointing to the risks of malware.
FRAND terms of use: In view of the conditions at Apple, the Commission had proposed to stipulate fair and non-discriminatory general terms of use in the gatekeepers’ app stores. The EP wanted to extend this requirement to all core platform services. A possible compromise could include a longer list of services for which the corporations must fulfill the so-called FRAND conditions for business customers.
Role of national authorities: The division of responsibilities between the EU Commission and national antitrust authorities in enforcing the DMA – a core concern of the German government and the German Federal Cartel Office – is still a matter of dispute. It is becoming apparent that the Commission will retain the final say, but that the national authorities will be involved via the European Competition Network (ECN). Schwab would waive the Commission’s required veto on national decisions by the antitrust authorities in exchange for the Council moving on its demands on prohibitions and restrictions.
Future-proofing: It should be possible to adjust the list of prohibitions and restrictions in Articles 5 and 6 of the DMA if the digital groups demonstrate new problematic business practices. However, it has not yet been agreed in which legal procedure this should take place.
Markus Engels promptly answers the question of whether he has a “global solution” – against all expectations: “First: multilateralism only works if civil society is involved. Second, gross domestic product is not enough to measure prosperity.”
Economic prosperity has become decoupled from social prosperity. The “Recoupling Dashboard” developed by Global Solutions adds factors such as solidarity, individual development, and environmental protection. The federal government’s new annual economic report shows alternatives to gross domestic product (GDP), which is a success, he said. “Companies don’t just want to balance the books, they want their commitment to society and the environment to be considered.”
After studying social sciences and law, Engels wrote his dissertation on social rights and their justiciability. The thoughtful-looking gentleman, his forehead resting on his hand in the video interview, co-wrote the European Charter of Fundamental Rights as a scientific advisor. Proud of it, he acknowledges, “When you read it, think of me. I was involved in it.”
The move to Global Solutions in 2018 came unexpectedly after years with the SPD. Engels already accompanied Martin Schulz during his time as an EU politician. During his candidacy for chancellor in 2017, Engels took over as campaign manager. The change was then announced at the beginning of 2018, shortly after the failed candidacy. The 54-year-old remembers the time; many preconceptions about a rough everyday working life among politicians would not be true: “I made close friends and worked trustingly with colleagues.”
Engels sees Global Solutions as a “public good. It’s a nonprofit, but it belongs to the world.” With an “open arms policy,” he says, proposals from academia, civil society and NGOs are being heard, currently in preparation for the G7 summit in Germany. “I am impressed by the creativity of the people I meet in the process.” Engels speaks with an infectious belief in the good. He says he was modeled on Egon Bahr, who changed East-West politics in 1963 with his speech “Change through rapprochement.” Engels: “International problems need international answers. Climate change, pandemics, and digitalization cannot be solved without countries like China or Saudi Arabia.”
Nevertheless, national identity remains important: “I am European and benefited from the removal of borders – my wife comes from the former GDR. But I’m connected to the Ruhr Valley, that’s my local identity,” Engels explains. Toward the end of the conversation, he digresses to the 1970s. “Men sat in their armchairs in the evening and watched sports shows. We talked about the ‘bag of rice in China’ when something didn’t concern us. I don’t think things were better in the old days.” Vera Almotlak
the ruble is no longer rolling and Putin’s currency reserves seem to be running out – now he wants to invent an obligation that gas may only be paid for in rubles. The details are still unclear. The Russian authorities now have one week to work out the details of this breach of contract. The federal government is examining the consequences but points out that the contracts were concluded with private companies.
The marathon summit in Brussels begins today, for which US President Joe Biden is also expected. It is questionable what he will bring with him. New sanctions against Russia? An energy partnership with Europe? Biden will attend the special NATO summit, then a meeting of the G7, and then the EU summit as well. Eric Bonse and Falk Steiner took a look at what’s in store for the next two days.
In the run-up to the EU summit, the Commission has named emergency measures on how member states can respond to high energy prices. The measures range from the implementation of an aggregator model to regulatory intervention in the energy markets. In addition, the EU Commission has presented a proposal for minimum gas storage volumes in the EU. Lukas Scheid analyzes the various options to be discussed on Thursday and Friday.
The final trialogue on the Digital Markets Act is about to begin. But many questions in the scope and governance sections are still open. However, the negotiators from the European Parliament, the Council, and the EU Commission have the most work to do in the area of gatekeepers. Till Hoppe has listed the questions that still need to be clarified.
A broad consensus and a big unknown: that’s how EU diplomats describe the situation ahead of an unusual marathon summit in Brussels, dominated by Russia’s war of aggression in Ukraine. There is broad consensus that the EU, like NATO and the G7, remains fully behind Ukraine. After the attack, everything must be done to help the country and defeat Kremlin leader Vladimir Putin, Council President Charles Michel told CNN.
“That means, first and foremost, we have to make sure that Putin is defeated. That has to be the current goal. This is a question of security for the future of Europe and for the future of the world.” It is a matter of “reaffirming our unity,” an EU official added. The big unknown is what US President Joe Biden will have in his luggage when he comes to Brussels on Thursday. Biden will first attend a special NATO summit, then a meeting of the G7 under the German presidency – and finally the EU summit, which begins in the afternoon.
He expects the US to impose new sanctions against Russia, an EU diplomat said. This would put pressure on the EU to also tighten its punitive measures. It is also conceivable, however, that Biden will make the EU an offer of cooperation on energy supplies. Commission President Ursula von der Leyen said she hoped for an agreement on additional supplies of liquefied natural gas (LNG). She will discuss with Biden on Thursday how US supplies to the EU could be given priority, the CDU politician told the European Parliament. “We are seeking a commitment on additional supplies for the next two winters.”
Von der Leyen said nothing about possible new sanctions. The Europeans have already adopted four sanctions packages. However, no embargo has yet been imposed on oil and gas deliveries from Russia, as is the case in the United States. In addition to Ukraine, Poland and Lithuania have also spoken out in favor of an import ban. Germany, Hungary, and some other EU states, however, oppose an energy embargo. The German government’s position remains unchanged, Chancellor Olaf Scholz said on Tuesday after a meeting with EU Parliament President Roberta Metsola in Berlin.
Within the framework of both the G7 and the EU, sanctions would now focus more on enforcement and the avoidance of circumvention, it was said in Berlin on Wednesday. Sanctions did not prevent escalation because they had no direct impact on the war effort, the reading in the German capital said. The sanctions packages would now have to be tested for their effectiveness. However, if further steps were necessary, they would be taken. The German government does not currently expect an embargo on Russian oil and gas.
Berlin expects intensive discussions, particularly on energy issues. On the one hand, the EU’s toolbox is praised, especially the possibility of addressing social hardships. On the other hand, Berlin warns against unintended interactions and isolated solutions – the further integration of the energy markets is now important. Remaining realistic is the motto – for example, also with regard to joint LNG purchasing, which is seen as fundamentally positive. But neither the amount of LNG available nor the transport capacities would be changed by such a project.
Berlin remains extremely skeptical about interventions in energy market pricing, such as those demanded by Spain. The German government’s argument is based on the fact that the energy sector is primarily made up of private-sector players who often operate across national borders. All that can be done is to provide them with a framework. With a view to the announcements expected in April from the German government on the expansion of renewable energies, the so-called Easter package, the importance of the European Fit for 55 package was once again emphasized. The goal is to permanently reduce dependence on Russian energy. Renewables are a particularly effective means of achieving this.
The draft conclusions of the EU summit reflect the numerous reservations. In the area of energy policy, it only talks about joint oil and gas purchases. “Looking ahead to next winter, member states and the Commission will urgently… cooperate on joint purchases of gas, LNG, and hydrogen,” it says. The draft also provides for a new solidarity fund for Ukraine. A donor conference is to be organized for this purpose. New arms deliveries worth up to €500 million are also planned. The money is to come from the EU’s so-called Peace Facility. Two weeks ago, €450 million had already been released.
In addition, the heads of state and government want to adopt the new security strategy. The “Strategic Compass” addresses the “Russian aggression” in Ukraine and analyzes new threats, such as disinformation and cyberattacks. It also envisages a rapid EU intervention force of up to 5,000 troops. The German government has offered to provide the core of this new unit in the first year. However, the EU force is not expected to be operational until 2025. It will probably not be able to intervene in Ukraine. With Falk Steiner
In order to cushion high energy prices, the EU Commission on Wednesday outlined possible emergency measures, which it, however, associates with high costs and further disadvantages. The options are not binding and are to be discussed at the EU summit this week.
For example, one option could be to provide indirect support to consumers and businesses, for example through an aggregator model. Here, member states create a public body that buys energy on favorable terms and passes it on to certain consumer groups at prices below the market level by subsidizing the difference between retail prices and wholesale prices.
Other options include intervening directly in wholesale electricity markets by compensating electricity generators for part of their high fuel costs so that they lower their offer price on the wholesale market. It would also be possible to cap the price of electricity on the wholesale market by setting a reference benchmark and subsidizing the difference with the offer price.
However, according to the Commission, in addition to high costs, these options pose the risk of distorting competition as well as a risk to cross-border electricity trade and thus also to security of supply. Neighboring countries could buy electricity in Europe because of the lower prices. Incentives for the reduced use of fossil fuels and the expansion of renewable capacities are also lacking, which is why the Commission questions the climate compatibility of these measures.
The Commission sees another possibility in limiting excessive profits by electricity producers. Contracts for differences could be used to oblige electricity producers to repay profits above a fixed base price. Although this would not lower prices, the revenues could be used to finance direct payments to consumers and companies.
To address the problem of high energy prices at their source – the price of gas – the Commission envisages two options. A price cap for gas only: this would likely reduce consumer prices, but there would be a risk of lower supply volumes from suppliers, which would pose a risk to the security of supply.
The Commission favors the option of joint gas purchases from third countries – as well as LNG or hydrogen. To this end, the Commission wants to set up a task force to negotiate energy partnerships with suppliers. The establishment of such a negotiating group is to be discussed at the EU summit.
The Commission presented a concrete legislative proposal for Europe’s gas storage facilities. The authority is demanding mandatory minimum storage volumes from the operators of gas storage facilities in Europe. In the coming winter, member states must ensure that storage facilities are at least 80 percent full by Nov 1, according to the Commission’s proposal. The Commission also sets interim targets along the way.
Starting in 2023, the minimum fill level will be 90 percent by Nov 1. However, member states are to be given the flexibility to meet this target as late as Dec. 1 if there are technical difficulties, “for example with pipelines […] or with injection facilities.” In addition, the targets are also to be suspended in “EU-wide emergencies” where there is insufficient gas available.
To provide incentives for storage operators, member states are to be able to take “all necessary measures, including financial incentives or compensation payments for market participants.” A complete price reduction on transmission charges at the entry and exit point of storage facilities is also conceivable, according to the Commission.
The proposal also includes requiring storage operators to report levels to national authorities, and member states, in turn, to monitor them monthly and report to the Commission. Operators must also have their facilities certified (Europe.Table reported) to avoid “potential risks from external interference with critical storage infrastructure.” Germany, with 245.3 terawatt-hours, has just under a quarter of the EU’s gas storage capacity.
It is now up to the heads of state and government, and then the EU Parliament, to negotiate the Commission’s proposal and also reach an agreement.
Today, the negotiators from the European Parliament, the Council and the EU Commission will meet on the Digital Markets Act, for the fourth and probably last time. According to the agenda, the meeting is to begin at 3 p.m., but the end remains open. It is likely to be a long meeting: the representatives of the three institutions still have a number of points to clarify.
Thresholds: EP rapporteur Andreas Schwab (CDU/EVP) wants to set the threshold for so-called gatekeeper platforms with €80 billion market capitalization and €8 billion annual turnover higher than the Council (€65 and €6.5 billion). As a possible compromise, €75 and €7.5 billion are emerging here.
Services: Schwab also wants to ensure that virtual assistants and browsers are also considered core platform services and thus fall under the DMA. It is already clear that search engines, social networks, video sharing platforms, messengers, cloud computing services, and advertising platforms, among others, will be included.
The DMA provides for a number of behavioral requirements and prohibitions for digital groups, which the Commission classifies as gatekeepers. The following requirements are still in dispute:
Interoperability: The EP wanted to enforce that gatekeepers must open both their social networks and messenger services to users of competing offerings. However, the Council and the Commission do not consider this feasible for networks such as Facebook, Instagram, and YouTube. The Parliament is likely to give in here: “This is a thick board,” says S&D negotiator René Repasi.
In the case of messenger services, on the other hand, it is becoming apparent that Meta will have to enable other providers to dock with WhatsApp. Users of Signal or Telegram could then also reach contacts on market leader WhatsApp, free of charge and end-to-end encrypted. However, the Commission believes that secure participation in group chats cannot be implemented quickly enough from a technical point of view. The EP is pushing for this function to be added to the DMA as soon as possible.
Personalized advertising: in the EP, the Social Democrats, the Greens, and the Left in particular had insisted on limiting the pooling of personal data, especially for the big advertising marketers Google and Facebook. The compromise now stipulates that the companies must again obtain users’ consent. If they refuse, they must still be allowed to use the respective offer largely without restriction. Still in dispute is the question of whether or not minors may consent to the processing of data for advertising purposes. S&D and Co want to give this group special protection. Repasi emphasizes: “If the Council and the Commission want to weaken the provisions in the DMA, they must support stricter regulations in the DSA. The trilogue on the Digital Services Act, which is running in parallel, is also negotiating how to deal with personalized advertising.
Preferences: The EP wants to be able to force Apple and Google in particular to offer their users more alternatives to their own apps. For example, users should be able to delete preinstalled programs more easily. Still in dispute is for which apps the platforms must also offer selection screens during installation: The Council wants to narrowly limit the list, Schwab, Repasi and Co are pushing for a longer list.
Side-loading: It is clear that consumers will also be able to install alternative app stores on their devices in the future. However, the fourth trilogue still has to clarify what minimum security restrictions the gatekeepers may set for this. Apple in particular had doggedly resisted opening up its app store environment, pointing to the risks of malware.
FRAND terms of use: In view of the conditions at Apple, the Commission had proposed to stipulate fair and non-discriminatory general terms of use in the gatekeepers’ app stores. The EP wanted to extend this requirement to all core platform services. A possible compromise could include a longer list of services for which the corporations must fulfill the so-called FRAND conditions for business customers.
Role of national authorities: The division of responsibilities between the EU Commission and national antitrust authorities in enforcing the DMA – a core concern of the German government and the German Federal Cartel Office – is still a matter of dispute. It is becoming apparent that the Commission will retain the final say, but that the national authorities will be involved via the European Competition Network (ECN). Schwab would waive the Commission’s required veto on national decisions by the antitrust authorities in exchange for the Council moving on its demands on prohibitions and restrictions.
Future-proofing: It should be possible to adjust the list of prohibitions and restrictions in Articles 5 and 6 of the DMA if the digital groups demonstrate new problematic business practices. However, it has not yet been agreed in which legal procedure this should take place.
Markus Engels promptly answers the question of whether he has a “global solution” – against all expectations: “First: multilateralism only works if civil society is involved. Second, gross domestic product is not enough to measure prosperity.”
Economic prosperity has become decoupled from social prosperity. The “Recoupling Dashboard” developed by Global Solutions adds factors such as solidarity, individual development, and environmental protection. The federal government’s new annual economic report shows alternatives to gross domestic product (GDP), which is a success, he said. “Companies don’t just want to balance the books, they want their commitment to society and the environment to be considered.”
After studying social sciences and law, Engels wrote his dissertation on social rights and their justiciability. The thoughtful-looking gentleman, his forehead resting on his hand in the video interview, co-wrote the European Charter of Fundamental Rights as a scientific advisor. Proud of it, he acknowledges, “When you read it, think of me. I was involved in it.”
The move to Global Solutions in 2018 came unexpectedly after years with the SPD. Engels already accompanied Martin Schulz during his time as an EU politician. During his candidacy for chancellor in 2017, Engels took over as campaign manager. The change was then announced at the beginning of 2018, shortly after the failed candidacy. The 54-year-old remembers the time; many preconceptions about a rough everyday working life among politicians would not be true: “I made close friends and worked trustingly with colleagues.”
Engels sees Global Solutions as a “public good. It’s a nonprofit, but it belongs to the world.” With an “open arms policy,” he says, proposals from academia, civil society and NGOs are being heard, currently in preparation for the G7 summit in Germany. “I am impressed by the creativity of the people I meet in the process.” Engels speaks with an infectious belief in the good. He says he was modeled on Egon Bahr, who changed East-West politics in 1963 with his speech “Change through rapprochement.” Engels: “International problems need international answers. Climate change, pandemics, and digitalization cannot be solved without countries like China or Saudi Arabia.”
Nevertheless, national identity remains important: “I am European and benefited from the removal of borders – my wife comes from the former GDR. But I’m connected to the Ruhr Valley, that’s my local identity,” Engels explains. Toward the end of the conversation, he digresses to the 1970s. “Men sat in their armchairs in the evening and watched sports shows. We talked about the ‘bag of rice in China’ when something didn’t concern us. I don’t think things were better in the old days.” Vera Almotlak
