Germany will elect the MEPs it sends to the European Parliament in six months. At least, more than half of Germans already know that European elections will be held next year. Not quite as many know the month they will be in. But that’s a good start.
And what is probably the most important issue for German voters? Democracy and the rule of law. That is what 43 percent of the respondents said in the Eurobarometer 2023 survey in the fall. Germany is an exception because, in most EU countries, the fight against poverty and social exclusion is at the top of the list of priorities, according to the survey, conducted regularly in the EU countries.
The list of priorities offers even more exciting insights into European sensitivities: After public health in second place (which is not as significant to Germans), combating climate change is in third place across Europe. Here, the Germans’ rating is slightly above the average for all Europeans. However, the topic has become slightly less important than in the spring survey.
In contrast, the issue of migration and asylum has become more important. It is still only in eighth place in the EU when Europeans are asked about their priorities. But in Germany, the matter has gained the most importance with an increase of twelve percentage points.
“Over the past five years, we have listened,” comments EU Parliament President Roberta Metsola on the survey results. “And the European Parliament has delivered,” she says. Now, we must continue to listen carefully and set the right priorities. We need European answers to the geopolitical challenges of our time. In this way, the EU can perhaps motivate even more people to mark the election date in their calendars as a must.
The EU Commission is expected to impose provisional punitive duties on EVs from China by July 4 at the latest. This is likely to be the result of the anti-subsidy investigation that the Commission has been conducting since October 4. It is expected that the tariffs will be in the low double-digit percentage range. The provisionally imposed duties would then have to be made official within four months. The anti-subsidy proceedings must be concluded after 13 months.
Even before the start of the investigation, Commission President Ursula von der Leyen announced in her State of the Union address, the Commission had clear indications of massive subsidization of EVs made in China. The number of imported battery electric vehicles (BEV) from China has risen sharply, and very favorable offers have also been registered. The EU is one of the few markets open to BEV imports from China. Turkey and other non-EU countries have imposed tariffs on BEV imports from China.
In the case of EVs from China, the Commission has launched the anti-subsidy investigation on its own initiative. As a first step in the investigation, it wrote to manufacturers in the EU and China and asked them to complete a questionnaire. The team of around 25 officials investigating the Commission then selected companies for a representative sample. Companies based in the EU are required to respond. Companies based in China do not have to respond. The evaluation of the several hundred pages of questionnaires from the representative sample is currently underway. Commission officials are also planning to visit China in early 2024 to verify the information.
Since the EU anti-dumping rules were amended in 2017, the EU Commission has been able to initiate an anti-subsidy investigation itself. It does not require complaints from the companies concerned.
According to the Commission’s findings, China grants BEV manufacturers in the country extensive and diverse subsidies, such as grants for land purchases, low-interest loans and tax rebates. Not only companies from China are to receive subsidies. Companies such as VW, BMW, Mercedes and Tesla, which produce BEVs in China and also export them to Europe, also receive these subsidies. So far, there is no evidence that the subsidies favor a specific market segment. The volume segment is subsidized just as much as the premium class. It is said that Chinese companies and the state authorities in China are very willing to cooperate.
If the Commission’s suspicions of unlawful subsidization of BEVs are confirmed, the rate of the duties will be determined. The procedure for this stipulates that the information from the representative sample is decisive for the level of duties. The manufacturer’s data is used to calculate what percentage of the turnover of BEV vehicles the subsidy accounts for. If around 15 percent of turnover corresponds to the subsidies paid, a duty of 15 percent is set. Companies not selected for the representative sample will be subject to the weighted average duty rate of the companies that provided data during the investigation.
Companies that did not participate may request to have the duty rate applicable to them calculated. Companies that were selected to participate in the representative study but did not participate could be subject to higher duties. All parties involved in the process will be heard by the EU Commission.
The Member States have a say in the final imposition of duties resulting from the anti-subsidy investigation. There is a vote among the member states in the comitology procedure.
The EU took a major step towards a circular economy with the trilogue agreement on the Ecodesign Regulation. Large retailers are no longer allowed to destroy unsold clothing, shoes and accessories two years after the regulation comes into force. The ban only applies after six years for medium-sized companies, and there are exceptions for small retailers.
Negotiators reached an agreement on Monday and Tuesday night. The Parliament originally wanted to include electronics in the throwaway ban. The Commission will receive the right to introduce bans for other product groups in the future through delegated acts. However, product-specific regulations are lengthy and can drag on for years, the Federation of German Consumer Organizations (VZBV) criticized. However, it has been stipulated that companies must report annually on how many products they have disposed of and for what reasons.
However, what is actually new about the further development of the Ecodesign Directive into a regulation is its considerably broader scope. Previously, the legislation mainly concerned the energy consumption of goods. It moved toward a circular economy by implementing regulations from 2018/19, which added requirements for the availability of spare parts and the dismantling of household appliances.
The regulation now extends the scope to almost all products. The following are still excluded:
In addition to energy efficiency, the regulation will regulate many more requirements for durability, recyclability and water consumption. There will not be a ban on planned obsolescence. However, for the first time, a legal definition of premature wear and tear will be enshrined in a legal text, said Anna Cavazzini (Greens), Chair of the Internal Market Committee, yesterday.
Instead of “planned wear and tear,” the compromise now refers to “premature wear and tear” because intent is difficult to prove. On the one hand, this can form a legal basis for legal disputes if, for example, specific design features occur or software updates are no longer provided. On the other hand, it also binds the Commission when setting Ecodesign requirements.
The Commission must provide an initial overview of the products for which it intends to define which Ecodesign criteria in a work plan within nine months. The Parliament ensured that the Commission must prioritize certain products: in addition to textiles, these include iron, steel, aluminum, furniture, tires, detergents, paints, lubricants and chemicals.
In future, the criteria will be made transparent in a digital product passport – for buyers and for dealers, disposal companies and repair businesses. In accordance with the agreement, the Commission will also set up an internet portal that consumers can use to search for and compare information from the passports. “In the Internal Market Committee, we also successfully campaigned for a repair score,” says Cavazzini. “This will show how easy a product is to repair at the time of purchase.”
Companies are particularly critical of the agreement’s transparency requirements for the supply chain. Business Europe complained yesterday that the stakeholders are being overburdened for reasons that have nothing to do with the circular economy. For example, the definition of “substances of concern” is too broad and would lead to legal uncertainty.
Consumer advocates are particularly bothered by the weak standards for online stores. The umbrella organization BEUC wrote yesterday that the goods offered repeatedly failed safety tests and did not meet the sustainability criteria already in place. The Council, on the other hand, argued that it had merely based the regulation on the Digital Services Act. However, this was already too weak for BEUC: online retailers do not have to randomly check their goods, for example.
Consumer advocates generally consider the market surveillance in the Ecodesign Regulation to be too weak. “For this new law to work, it is essential that the political will is accompanied by adequate financial and human resources for its implementation and enforcement,” said Monique Goyens, Director General of BEUC. The resources must come from both the Commission and the monitoring authorities of the Member States.
Ahead of the EU-China Summit, EU Commission President Ursula von der Leyen warned of a growing trade imbalance with China and issued a challenge: The EU will not tolerate this significant imbalance in the long term, she said in an interview with AFP for several European news agencies on Tuesday. “We have tools to protect our market.”
The trade imbalance with the People’s Republic had doubled to nearly 400 billion euros over the past two years, von der Leyen added. The EU prefers negotiated solutions. It is “also in China’s interest” to make decisions in coordination with Europeans at the summit.
On Thursday, the EU-China Summit will take place in person for the first time since 2019: von der Leyen and Council President Charles Michel will meet Xi Jinping and Li Qiang in Beijing. However, there are not too high expectations for concrete results.
Jens Hildebrandt, Managing Director of the German Chamber of Commerce (AHK) in China, also wishes for balanced trade as a discussion topic at the meeting: “From our point of view, the level playing field must be back on the agenda,” said Hildebrandt during a press briefing in Beijing.
It should no longer be allowed that European companies in China do not encounter the same competitive conditions as the Chinese economy in some areas, while Chinese companies can fully exploit the European market, he said. Nevertheless, Hildebrandt warns against an escalation of economic tensions between Europe and the People’s Republic.
He hopes that no trade conflict will be triggered, emphasized Hildebrandt on Tuesday: “Because the German economy needs open markets.” In the ongoing EU investigations into the subsidization of Chinese EVs, one should not put oneself in a disadvantageous position, according to him. Hildebrandt expected clear statements from EU representatives at the summit: “The EU side must make it clear at the meeting in which areas de-risking is envisaged.”
According to Hildebrandt, visa-free entry or other relaxations as part of China’s charm offensive before the meeting help only “minimally” to restore trust. He does not expect major structural changes in the near future: “The Chinese government is currently limited in its actions,” said the AHK chief. Too deep cuts in the economy are not possible at the moment. Hildebrandt sees the fact that both sides are meeting in person for the first time again as positive.
Von der Leyen and EU Council President Charles Michel will initially meet China’s President Xi Jinping and then Premier Li Qiang on Thursday. The meeting is the first personal one within this summit format since 2019. At that time, the EU Commission chief was still Jean-Claude Juncker, the EU Council was led by Donald Tusk and China’s prime minister was Li Keqiang.
The online formats during the pandemic did not deliver significant results, and that is still putting it nicely: EU foreign chief Josep Borrell retrospectively called the 2022 meeting a “summit of the deaf” – Brussels primarily wanted to discuss the Ukraine crisis, while Beijing focused on trade issues.
However, too much should not be expected from the personal summit in Beijing. The initially planned two official days have now been reduced to one. EU Council President Michel is expected to fly back on Thursday to take care of preparations for the EU summit of heads of state and government. A stop in Shanghai on Friday had originally been planned for him.
A joint statement for the summit is not planned, nor is the signing of technical agreements that were coordinated during visits by other EU representatives in recent weeks.
The limited results of the Biden-Xi summit in San Francisco were already a sign that China does not want to make substantial offers to the West, says Abigaël Vasselier, Head of the Foreign Relations Team at the Merics China Research Institute. “Given the elections in Europe and the USA in 2024, it is unlikely that Beijing will make concessions to the heads of state and government who may no longer be in office in a few months.” China’s economic and political support for Russia will be a point of attack for the Europeans, says Vasselier.
Her colleague Grzegorz Stec, EU-China Analyst at Merics, also expects only limited results at the summit. “The summit will, however, set the tone and agenda for relations between the EU and China until the end of the current EU mandate,” says Stec. The main theme of the meeting will be risk reduction. “Ahead of the summit, Chinese diplomats proposed replacing de-risking with a ‘rebuilding strategic trust’ through more robust dialogues.”
Due to political tensions and China’s economic situation, some German companies are already reducing risk associated with China business, according to an AHK survey: 44 percent of 566 respondents stated that their company headquarters are taking such steps. Slightly more companies (45 percent) denied this. The remainder answered with “I don’t know.”
The companies are relying, for example, on supply chains independent of China or are additionally establishing business in other countries. India is the biggest beneficiary in Asia: 72 percent of the surveyed companies are already active there in addition to China.
However, it is important that 54 percent of the companies want to expand their investments in China, said AHK Chief Hildebrandt. A large part of these companies justified the plan by wanting to remain competitive in China. For example, some are localizing their research and development in China. Because the huge Chinese market remains irreplaceable, as stated in the AHK survey.
The rules of origin for EVs from the free trade and cooperation agreement between the UK and the EU should not take effect in 2024, but three years later, i.e. in 2027. According to reports, the EU Commission intends to make this proposal today, Wednesday. Otherwise, a ten percent duty would be due in January for every battery-EV traded between the UK and the EU.
The duty is envisaged if less than 45 percent of the value added takes place in the UK or the EU. As battery production for EVs has not yet ramped up in the EU and the UK, the batteries are mainly imported from Asia and the US. The Member States and the UK government would have to agree to the Commission’s proposal. mgr
Ahead of the fifth trilogue on the AI Act, the assessments could not be more different: “We are very hopeful,” said Carme Artigas, Spanish Secretary of State for Digitalization and Artificial Intelligence at the meeting of ministers in the Telecommunications Council on Tuesday. “We have a sufficiently concrete but also broad mandate from the member states, which will give us the necessary flexibility.” She conceded that some positions were still a long way from the parliamentary positions, but that they could come closer.
The representatives of France and Germany, on the other hand, emphasized the differences: “Overall, the AI regulation is not ready for a decision,” said Federal Digital Minister Volker Wissing. And his French counterpart Jean-Noël Barrot said that, regardless of the outcome of this Wednesday’s trilogue, “there is still a lot to do and we cannot avoid convening another trilogue in the coming weeks if necessary.”
The Spanish, on the other hand, clarified that they definitely want to complete work on the AI regulation under their Council Presidency, i.e. before the end of the year. The trilogue begins today, Wednesday, at 3 pm. “We hope that it will end this night”, said Artigas. Wissing, on the other hand, said that “the conclusion of the negotiations in this EP legislature is still essential for us.” However, this would also include a conclusion under the Belgian Council Presidency at the beginning of 2024.
Wissing also explained a problem from a German perspective: “We cannot support the proposal for general-purpose AI models yet.” Instead, he once again spoke out in favor of mandatory self-regulation. Wissing called the two-tier approach proposed by Parliament difficult. “We are critical of both differentiation criteria.” There was also a need for further improvement in the definitions. “Clear and distinct definitions of the key terms and risks are central elements of the act and the applicability of the law.”
In addition to the discussion on the AI Act, the ministers found a general direction for the Gigabit Infrastructure Act (GIA). The first trilogue (handshake) took place after the ministerial meeting, as Parliament had already determined its position in September. The GIA is intended to replace the Broadband Cost Reduction Directive (BCRD) from 2014. It is an essential part of achieving the European connectivity targets.
The law, which aims to achieve minimum harmonization, is intended to reduce the unnecessarily high costs of building electronic communications infrastructures, some of which are caused by the approval procedures for the construction or expansion of networks. It is intended to speed up network expansion, create legal certainty and transparency for all economic players involved and enable more efficient planning and expansion procedures for operators of public electronic communications networks. vis
The European Commission has approved up to €1.2 billion in state aid for another Important Project of Common European Interest (IPCEI). This IPCEI is intended to support research, development and first industrial applications of advanced cloud and edge computing technologies in Europe, as the Commission announced on Tuesday.
It is the first IPCEI in the field of cloud and edge computing. Seven Member States have registered their participation in the project called IPCEI Next Generation Cloud Infrastructure and Services (IPCEI CIS): France, Germany, Hungary, Italy, the Netherlands, Poland and Spain. The Commission expects that the up to €1.2 billion in public funding from the Member States will unlock an additional €1.4 billion in private investment.
As part of this IPCEI CIS, 19 companies – including small and medium-sized enterprises – are planning to carry out 19 highly innovative projects. German participants are Deutsche Telekom, SAP and Siemens. The individual projects are divided into four areas and cover the entire cloud edge continuum, from the basic software level to industry-specific applications. The projects aim to support the digital and green transformation.
The research, development and initial industrial deployment phases will run between 2023 and 2031, with schedules varying depending on the project and the companies involved. At least 1,000 highly skilled jobs will be created directly and indirectly during this phase and many more in the commercialization phase. The first result of the IPCEI – an open-source reference infrastructure – is expected by the Commission towards the end of 2027. vis
The EU Commission hopes that the Mercosur agreement can be signed after Javier Milei takes office as Argentina’s new president. Milei, who describes himself as an anarcho-capitalist, takes office on December 10. He had positioned himself against the agreement during the election campaign. By the Christmas break, it will be clear whether the four Mercosur states and the EU Commission can agree on minor changes to the agreement, which has been under negotiation since 2019, in order to sign the agreement before the European elections, according to reports in Brussels.
According to negotiating circles, the imminent change of government in Argentina had thwarted plans to sign the agreement. The original plan was to sign the agreement at the Mercosur summit in Rio de Janeiro on December 7 at the end of Brazil’s Mercosur presidency. After Brazil, Paraguy will take over the presidency of the Mercosur group. As Commission President Ursula von der Leyen and Permanent Council President Charles Michel will be at the EU-China Summit on December 7, Spain’s Prime Minister Pedro Sánchez should sign the agreement on behalf of the EU. Spain holds the rotating presidency of the Council until the end of the year. mgr
The Spanish EU Council Presidency has made another attempt to get the stalled negotiations on the mid-term review of the multi-annual EU budget back on track. According to a document obtained by Contexte, Madrid is aiming to make cuts compared to the EU Commission’s proposal, with only the budget item for aid to Ukraine remaining untouched. In total, the Commission had estimated additional costs of almost €66 billion until 2027, including the subsidies to Ukraine, whereas the Spanish Presidency only envisages €51 billion for this period.
Specifically, Madrid is proposing to add €10.5 billion to the budget for the challenges associated with migration. The Commission had requested €12.5 billion for this item. There is also to be less money for the STEP transformation fund. Instead of €10 billion, as requested by the Commission, Madrid only wants to provide €7 billion to strengthen EU competitiveness. In addition, the additional costs due to higher interest rates for the bonds from the Next Generation EU program are to be reduced from €18.9 billion (Commission proposal) to €15 billion.
According to information from diplomatic circles, an initial discussion on the new Spanish negotiation proposal took place at the ambassador level at the beginning of the week. The initial situation among the member states showed an unchanged mixed mood. Germany, as well as other net contributors, agree with the package proposed by Brussels for Ukraine – €17 billion in grants and €33 billion in loans – but show little willingness to provide additional funds for the other budget items such as migration management and STEP. This would have to be achieved through redeployment and cuts in the existing budget.
Other member states, on the other hand, are calling for additional funds, as the Commission is also demanding. In addition, some only want to agree to an overall package for the second half of the EU financial framework and therefore do not want to exclude aid to Ukraine separately. Despite the different positions, the diplomats were confident that there would definitely be a solution to support Ukraine. “Aid to Ukraine will be secured, we can manage that as the EU,” they said in Brussels. However, time is pressing, as the EU summit is due to agree on the second half of the EU financial framework by 2027 as early as next week. cr
According to EU representatives, a fundamental agreement on a reform of the European fiscal rules before the end of the year is increasingly unlikely. The differences are too big, several EU insiders told the news agency Reuters.
The EU finance ministers are meeting in Brussels on Friday. Until then, Germany and France were supposed to explore a compromise. Both countries had emphasized at the beginning of November that progress had been made in the negotiations. However, no agreement has been announced since then.
“I don’t think a common approach will be found before the end of the year,” said a person familiar with the matter. There are still too many differences of opinion. “A deal on Friday is very unlikely,” said a second EU representative. A third insider said they were not far away from an agreement but there were still different red lines. However, these could be cleared with more negotiations.
The common position of the member states should actually be negotiated with the European Parliament at the beginning of 2024. Time is short because the Parliament will be newly elected in June 2024 and will dissolve before then. rtr
Just under six months before the European elections in June 2024, many Germans are critical of the work of the EU. In the representative “Europe Check-Up” survey, two out of three Germans state that they are not satisfied with the EU’s current policies. Only 17 percent are satisfied. The survey was commissioned for the first time by the non-partisan initiative “Let’s do something for Europe together.” The opinion research institute Civey surveyed 5,000 Germans on its behalf at the beginning of November.
Moreover, Germans have even less trust in the EU institutions than in the traffic light government: in a direct comparison, only one in ten respondents say that they have more trust in the EU institutions than in the federal government. Trust in the traffic light government is also currently low.
There also seems to be a lack of knowledge about the EU. In response to the question “Could you explain the various EU institutions to a friend?”, 44 percent answered “no”, while 40 percent said “yes.” However, actual knowledge was not surveyed.
“Let’s do something for Europe together” sees a need for action. However, in their opinion, there is also reason to hope: half of those surveyed are concerned about more national rather than European solutions. There is also a desire to talk more about Europe’s positive achievements, say more than six out of ten respondents. lei
Dutch-born Jules Maaten travels a lot. He moves between Brussels, where he heads the European Office of the Friedrich Naumann Foundation, the Netherlands, his home country, and Berlin as the center of German politics. The 62-year-old studied history and law at the Free University of Amsterdam. He joined the Young Liberals at the age of 16. The first European elections took place shortly afterward – a particularly politicizing time: “The first European elections were a breakthrough. I consciously experienced the development of a democratic Europe from the very beginning.”
Maaten initially gained political experience at local level. From 1986 to 1991, he was a local councilor in Amstelveen. “The local work was formative for me. When you talk about problems there, the people affected are just a few meters away.” In the meantime, he also worked in the Dutch parliament, but he was increasingly drawn to international work.
In 1991, Maaten went to London as Secretary General of the Liberal International until he entered the European Parliament in Brussels in 1999. Ten years earlier, he had already run unsuccessfully for this position. He served two terms as a member of the European Liberal and Democratic Party and was put forward as the lead candidate in 2004. He always tried to keep his experience as a local politician in mind. But Maaten admits: “It’s not so easy to take that with you when you go to Brussels.”
For ten years, he was a member of the Committee on the Environment, Public Health and Food Safety (ENVI). His most important dossier was his role as rapporteur for the Tobacco and Alcohol Directive. “The big warnings on cigarette packets today are my fault,” he says jokingly.
The former MEP believes that many issues “must remain national issues.” Especially in the areas of health, education and social policy. However, there are also “exceptions where European cooperation brings more advantages.” For example, given migration, there is “no other solution than a European one.” But “it is very difficult to distinguish between what Europe should and should not do.” For Maaten, the guiding principle for decision-making is the question: “What can help the citizens? If it is regulated at European level, at national or even local level?”
His assessment of the European Commission’s climate policy is largely positive: “There has been a lot of progress.” However, he is currently experiencing counter-pressure, which may manifest in a new Commission. “But that’s normal, in politics you take two steps forward and one step back.” In his opinion, reducing the radicalism with which the Green Deal is pushed forward would not be a bad thing.
Following his political mandate, Maaten’s path led him to the Friedrich Naumann Foundation, where he has worked since 2010. Initially in posts in South Africa and the Philippines. In 2022, he took over the management of the EU office. He is currently working on a project called Europe2050, in which he and his team are developing and discussing long-term visions for Europe. For example, what a possible relationship with the UK or Turkey could look like.
A Dutchman representing a German foundation may be unusual, but for Maaten, it was an obvious step. He learned German as a child – “mainly from watching Sportschau.” In his political thinking, he is now more German than Dutch. Nevertheless, he follows Dutch politics with interest. Hence Timmermans’ decision to leave the Commission and stand as a candidate in the national parliamentary elections. Maaten, who worked with Timmermans in another capacity as an MEP, does not have a bad word to say about the Social Democrat: “I hold him in high esteem. His personality is not easy but he really knows what he’s doing.” Like many, Maaten had also calculated Timmermans’ chances of becoming Prime Minister. However, his election result has now fallen behind that of right-wing populist Geert Wilders, who is considered a supporter of a referendum on leaving the EU. Clara Baldus
Germany will elect the MEPs it sends to the European Parliament in six months. At least, more than half of Germans already know that European elections will be held next year. Not quite as many know the month they will be in. But that’s a good start.
And what is probably the most important issue for German voters? Democracy and the rule of law. That is what 43 percent of the respondents said in the Eurobarometer 2023 survey in the fall. Germany is an exception because, in most EU countries, the fight against poverty and social exclusion is at the top of the list of priorities, according to the survey, conducted regularly in the EU countries.
The list of priorities offers even more exciting insights into European sensitivities: After public health in second place (which is not as significant to Germans), combating climate change is in third place across Europe. Here, the Germans’ rating is slightly above the average for all Europeans. However, the topic has become slightly less important than in the spring survey.
In contrast, the issue of migration and asylum has become more important. It is still only in eighth place in the EU when Europeans are asked about their priorities. But in Germany, the matter has gained the most importance with an increase of twelve percentage points.
“Over the past five years, we have listened,” comments EU Parliament President Roberta Metsola on the survey results. “And the European Parliament has delivered,” she says. Now, we must continue to listen carefully and set the right priorities. We need European answers to the geopolitical challenges of our time. In this way, the EU can perhaps motivate even more people to mark the election date in their calendars as a must.
The EU Commission is expected to impose provisional punitive duties on EVs from China by July 4 at the latest. This is likely to be the result of the anti-subsidy investigation that the Commission has been conducting since October 4. It is expected that the tariffs will be in the low double-digit percentage range. The provisionally imposed duties would then have to be made official within four months. The anti-subsidy proceedings must be concluded after 13 months.
Even before the start of the investigation, Commission President Ursula von der Leyen announced in her State of the Union address, the Commission had clear indications of massive subsidization of EVs made in China. The number of imported battery electric vehicles (BEV) from China has risen sharply, and very favorable offers have also been registered. The EU is one of the few markets open to BEV imports from China. Turkey and other non-EU countries have imposed tariffs on BEV imports from China.
In the case of EVs from China, the Commission has launched the anti-subsidy investigation on its own initiative. As a first step in the investigation, it wrote to manufacturers in the EU and China and asked them to complete a questionnaire. The team of around 25 officials investigating the Commission then selected companies for a representative sample. Companies based in the EU are required to respond. Companies based in China do not have to respond. The evaluation of the several hundred pages of questionnaires from the representative sample is currently underway. Commission officials are also planning to visit China in early 2024 to verify the information.
Since the EU anti-dumping rules were amended in 2017, the EU Commission has been able to initiate an anti-subsidy investigation itself. It does not require complaints from the companies concerned.
According to the Commission’s findings, China grants BEV manufacturers in the country extensive and diverse subsidies, such as grants for land purchases, low-interest loans and tax rebates. Not only companies from China are to receive subsidies. Companies such as VW, BMW, Mercedes and Tesla, which produce BEVs in China and also export them to Europe, also receive these subsidies. So far, there is no evidence that the subsidies favor a specific market segment. The volume segment is subsidized just as much as the premium class. It is said that Chinese companies and the state authorities in China are very willing to cooperate.
If the Commission’s suspicions of unlawful subsidization of BEVs are confirmed, the rate of the duties will be determined. The procedure for this stipulates that the information from the representative sample is decisive for the level of duties. The manufacturer’s data is used to calculate what percentage of the turnover of BEV vehicles the subsidy accounts for. If around 15 percent of turnover corresponds to the subsidies paid, a duty of 15 percent is set. Companies not selected for the representative sample will be subject to the weighted average duty rate of the companies that provided data during the investigation.
Companies that did not participate may request to have the duty rate applicable to them calculated. Companies that were selected to participate in the representative study but did not participate could be subject to higher duties. All parties involved in the process will be heard by the EU Commission.
The Member States have a say in the final imposition of duties resulting from the anti-subsidy investigation. There is a vote among the member states in the comitology procedure.
The EU took a major step towards a circular economy with the trilogue agreement on the Ecodesign Regulation. Large retailers are no longer allowed to destroy unsold clothing, shoes and accessories two years after the regulation comes into force. The ban only applies after six years for medium-sized companies, and there are exceptions for small retailers.
Negotiators reached an agreement on Monday and Tuesday night. The Parliament originally wanted to include electronics in the throwaway ban. The Commission will receive the right to introduce bans for other product groups in the future through delegated acts. However, product-specific regulations are lengthy and can drag on for years, the Federation of German Consumer Organizations (VZBV) criticized. However, it has been stipulated that companies must report annually on how many products they have disposed of and for what reasons.
However, what is actually new about the further development of the Ecodesign Directive into a regulation is its considerably broader scope. Previously, the legislation mainly concerned the energy consumption of goods. It moved toward a circular economy by implementing regulations from 2018/19, which added requirements for the availability of spare parts and the dismantling of household appliances.
The regulation now extends the scope to almost all products. The following are still excluded:
In addition to energy efficiency, the regulation will regulate many more requirements for durability, recyclability and water consumption. There will not be a ban on planned obsolescence. However, for the first time, a legal definition of premature wear and tear will be enshrined in a legal text, said Anna Cavazzini (Greens), Chair of the Internal Market Committee, yesterday.
Instead of “planned wear and tear,” the compromise now refers to “premature wear and tear” because intent is difficult to prove. On the one hand, this can form a legal basis for legal disputes if, for example, specific design features occur or software updates are no longer provided. On the other hand, it also binds the Commission when setting Ecodesign requirements.
The Commission must provide an initial overview of the products for which it intends to define which Ecodesign criteria in a work plan within nine months. The Parliament ensured that the Commission must prioritize certain products: in addition to textiles, these include iron, steel, aluminum, furniture, tires, detergents, paints, lubricants and chemicals.
In future, the criteria will be made transparent in a digital product passport – for buyers and for dealers, disposal companies and repair businesses. In accordance with the agreement, the Commission will also set up an internet portal that consumers can use to search for and compare information from the passports. “In the Internal Market Committee, we also successfully campaigned for a repair score,” says Cavazzini. “This will show how easy a product is to repair at the time of purchase.”
Companies are particularly critical of the agreement’s transparency requirements for the supply chain. Business Europe complained yesterday that the stakeholders are being overburdened for reasons that have nothing to do with the circular economy. For example, the definition of “substances of concern” is too broad and would lead to legal uncertainty.
Consumer advocates are particularly bothered by the weak standards for online stores. The umbrella organization BEUC wrote yesterday that the goods offered repeatedly failed safety tests and did not meet the sustainability criteria already in place. The Council, on the other hand, argued that it had merely based the regulation on the Digital Services Act. However, this was already too weak for BEUC: online retailers do not have to randomly check their goods, for example.
Consumer advocates generally consider the market surveillance in the Ecodesign Regulation to be too weak. “For this new law to work, it is essential that the political will is accompanied by adequate financial and human resources for its implementation and enforcement,” said Monique Goyens, Director General of BEUC. The resources must come from both the Commission and the monitoring authorities of the Member States.
Ahead of the EU-China Summit, EU Commission President Ursula von der Leyen warned of a growing trade imbalance with China and issued a challenge: The EU will not tolerate this significant imbalance in the long term, she said in an interview with AFP for several European news agencies on Tuesday. “We have tools to protect our market.”
The trade imbalance with the People’s Republic had doubled to nearly 400 billion euros over the past two years, von der Leyen added. The EU prefers negotiated solutions. It is “also in China’s interest” to make decisions in coordination with Europeans at the summit.
On Thursday, the EU-China Summit will take place in person for the first time since 2019: von der Leyen and Council President Charles Michel will meet Xi Jinping and Li Qiang in Beijing. However, there are not too high expectations for concrete results.
Jens Hildebrandt, Managing Director of the German Chamber of Commerce (AHK) in China, also wishes for balanced trade as a discussion topic at the meeting: “From our point of view, the level playing field must be back on the agenda,” said Hildebrandt during a press briefing in Beijing.
It should no longer be allowed that European companies in China do not encounter the same competitive conditions as the Chinese economy in some areas, while Chinese companies can fully exploit the European market, he said. Nevertheless, Hildebrandt warns against an escalation of economic tensions between Europe and the People’s Republic.
He hopes that no trade conflict will be triggered, emphasized Hildebrandt on Tuesday: “Because the German economy needs open markets.” In the ongoing EU investigations into the subsidization of Chinese EVs, one should not put oneself in a disadvantageous position, according to him. Hildebrandt expected clear statements from EU representatives at the summit: “The EU side must make it clear at the meeting in which areas de-risking is envisaged.”
According to Hildebrandt, visa-free entry or other relaxations as part of China’s charm offensive before the meeting help only “minimally” to restore trust. He does not expect major structural changes in the near future: “The Chinese government is currently limited in its actions,” said the AHK chief. Too deep cuts in the economy are not possible at the moment. Hildebrandt sees the fact that both sides are meeting in person for the first time again as positive.
Von der Leyen and EU Council President Charles Michel will initially meet China’s President Xi Jinping and then Premier Li Qiang on Thursday. The meeting is the first personal one within this summit format since 2019. At that time, the EU Commission chief was still Jean-Claude Juncker, the EU Council was led by Donald Tusk and China’s prime minister was Li Keqiang.
The online formats during the pandemic did not deliver significant results, and that is still putting it nicely: EU foreign chief Josep Borrell retrospectively called the 2022 meeting a “summit of the deaf” – Brussels primarily wanted to discuss the Ukraine crisis, while Beijing focused on trade issues.
However, too much should not be expected from the personal summit in Beijing. The initially planned two official days have now been reduced to one. EU Council President Michel is expected to fly back on Thursday to take care of preparations for the EU summit of heads of state and government. A stop in Shanghai on Friday had originally been planned for him.
A joint statement for the summit is not planned, nor is the signing of technical agreements that were coordinated during visits by other EU representatives in recent weeks.
The limited results of the Biden-Xi summit in San Francisco were already a sign that China does not want to make substantial offers to the West, says Abigaël Vasselier, Head of the Foreign Relations Team at the Merics China Research Institute. “Given the elections in Europe and the USA in 2024, it is unlikely that Beijing will make concessions to the heads of state and government who may no longer be in office in a few months.” China’s economic and political support for Russia will be a point of attack for the Europeans, says Vasselier.
Her colleague Grzegorz Stec, EU-China Analyst at Merics, also expects only limited results at the summit. “The summit will, however, set the tone and agenda for relations between the EU and China until the end of the current EU mandate,” says Stec. The main theme of the meeting will be risk reduction. “Ahead of the summit, Chinese diplomats proposed replacing de-risking with a ‘rebuilding strategic trust’ through more robust dialogues.”
Due to political tensions and China’s economic situation, some German companies are already reducing risk associated with China business, according to an AHK survey: 44 percent of 566 respondents stated that their company headquarters are taking such steps. Slightly more companies (45 percent) denied this. The remainder answered with “I don’t know.”
The companies are relying, for example, on supply chains independent of China or are additionally establishing business in other countries. India is the biggest beneficiary in Asia: 72 percent of the surveyed companies are already active there in addition to China.
However, it is important that 54 percent of the companies want to expand their investments in China, said AHK Chief Hildebrandt. A large part of these companies justified the plan by wanting to remain competitive in China. For example, some are localizing their research and development in China. Because the huge Chinese market remains irreplaceable, as stated in the AHK survey.
The rules of origin for EVs from the free trade and cooperation agreement between the UK and the EU should not take effect in 2024, but three years later, i.e. in 2027. According to reports, the EU Commission intends to make this proposal today, Wednesday. Otherwise, a ten percent duty would be due in January for every battery-EV traded between the UK and the EU.
The duty is envisaged if less than 45 percent of the value added takes place in the UK or the EU. As battery production for EVs has not yet ramped up in the EU and the UK, the batteries are mainly imported from Asia and the US. The Member States and the UK government would have to agree to the Commission’s proposal. mgr
Ahead of the fifth trilogue on the AI Act, the assessments could not be more different: “We are very hopeful,” said Carme Artigas, Spanish Secretary of State for Digitalization and Artificial Intelligence at the meeting of ministers in the Telecommunications Council on Tuesday. “We have a sufficiently concrete but also broad mandate from the member states, which will give us the necessary flexibility.” She conceded that some positions were still a long way from the parliamentary positions, but that they could come closer.
The representatives of France and Germany, on the other hand, emphasized the differences: “Overall, the AI regulation is not ready for a decision,” said Federal Digital Minister Volker Wissing. And his French counterpart Jean-Noël Barrot said that, regardless of the outcome of this Wednesday’s trilogue, “there is still a lot to do and we cannot avoid convening another trilogue in the coming weeks if necessary.”
The Spanish, on the other hand, clarified that they definitely want to complete work on the AI regulation under their Council Presidency, i.e. before the end of the year. The trilogue begins today, Wednesday, at 3 pm. “We hope that it will end this night”, said Artigas. Wissing, on the other hand, said that “the conclusion of the negotiations in this EP legislature is still essential for us.” However, this would also include a conclusion under the Belgian Council Presidency at the beginning of 2024.
Wissing also explained a problem from a German perspective: “We cannot support the proposal for general-purpose AI models yet.” Instead, he once again spoke out in favor of mandatory self-regulation. Wissing called the two-tier approach proposed by Parliament difficult. “We are critical of both differentiation criteria.” There was also a need for further improvement in the definitions. “Clear and distinct definitions of the key terms and risks are central elements of the act and the applicability of the law.”
In addition to the discussion on the AI Act, the ministers found a general direction for the Gigabit Infrastructure Act (GIA). The first trilogue (handshake) took place after the ministerial meeting, as Parliament had already determined its position in September. The GIA is intended to replace the Broadband Cost Reduction Directive (BCRD) from 2014. It is an essential part of achieving the European connectivity targets.
The law, which aims to achieve minimum harmonization, is intended to reduce the unnecessarily high costs of building electronic communications infrastructures, some of which are caused by the approval procedures for the construction or expansion of networks. It is intended to speed up network expansion, create legal certainty and transparency for all economic players involved and enable more efficient planning and expansion procedures for operators of public electronic communications networks. vis
The European Commission has approved up to €1.2 billion in state aid for another Important Project of Common European Interest (IPCEI). This IPCEI is intended to support research, development and first industrial applications of advanced cloud and edge computing technologies in Europe, as the Commission announced on Tuesday.
It is the first IPCEI in the field of cloud and edge computing. Seven Member States have registered their participation in the project called IPCEI Next Generation Cloud Infrastructure and Services (IPCEI CIS): France, Germany, Hungary, Italy, the Netherlands, Poland and Spain. The Commission expects that the up to €1.2 billion in public funding from the Member States will unlock an additional €1.4 billion in private investment.
As part of this IPCEI CIS, 19 companies – including small and medium-sized enterprises – are planning to carry out 19 highly innovative projects. German participants are Deutsche Telekom, SAP and Siemens. The individual projects are divided into four areas and cover the entire cloud edge continuum, from the basic software level to industry-specific applications. The projects aim to support the digital and green transformation.
The research, development and initial industrial deployment phases will run between 2023 and 2031, with schedules varying depending on the project and the companies involved. At least 1,000 highly skilled jobs will be created directly and indirectly during this phase and many more in the commercialization phase. The first result of the IPCEI – an open-source reference infrastructure – is expected by the Commission towards the end of 2027. vis
The EU Commission hopes that the Mercosur agreement can be signed after Javier Milei takes office as Argentina’s new president. Milei, who describes himself as an anarcho-capitalist, takes office on December 10. He had positioned himself against the agreement during the election campaign. By the Christmas break, it will be clear whether the four Mercosur states and the EU Commission can agree on minor changes to the agreement, which has been under negotiation since 2019, in order to sign the agreement before the European elections, according to reports in Brussels.
According to negotiating circles, the imminent change of government in Argentina had thwarted plans to sign the agreement. The original plan was to sign the agreement at the Mercosur summit in Rio de Janeiro on December 7 at the end of Brazil’s Mercosur presidency. After Brazil, Paraguy will take over the presidency of the Mercosur group. As Commission President Ursula von der Leyen and Permanent Council President Charles Michel will be at the EU-China Summit on December 7, Spain’s Prime Minister Pedro Sánchez should sign the agreement on behalf of the EU. Spain holds the rotating presidency of the Council until the end of the year. mgr
The Spanish EU Council Presidency has made another attempt to get the stalled negotiations on the mid-term review of the multi-annual EU budget back on track. According to a document obtained by Contexte, Madrid is aiming to make cuts compared to the EU Commission’s proposal, with only the budget item for aid to Ukraine remaining untouched. In total, the Commission had estimated additional costs of almost €66 billion until 2027, including the subsidies to Ukraine, whereas the Spanish Presidency only envisages €51 billion for this period.
Specifically, Madrid is proposing to add €10.5 billion to the budget for the challenges associated with migration. The Commission had requested €12.5 billion for this item. There is also to be less money for the STEP transformation fund. Instead of €10 billion, as requested by the Commission, Madrid only wants to provide €7 billion to strengthen EU competitiveness. In addition, the additional costs due to higher interest rates for the bonds from the Next Generation EU program are to be reduced from €18.9 billion (Commission proposal) to €15 billion.
According to information from diplomatic circles, an initial discussion on the new Spanish negotiation proposal took place at the ambassador level at the beginning of the week. The initial situation among the member states showed an unchanged mixed mood. Germany, as well as other net contributors, agree with the package proposed by Brussels for Ukraine – €17 billion in grants and €33 billion in loans – but show little willingness to provide additional funds for the other budget items such as migration management and STEP. This would have to be achieved through redeployment and cuts in the existing budget.
Other member states, on the other hand, are calling for additional funds, as the Commission is also demanding. In addition, some only want to agree to an overall package for the second half of the EU financial framework and therefore do not want to exclude aid to Ukraine separately. Despite the different positions, the diplomats were confident that there would definitely be a solution to support Ukraine. “Aid to Ukraine will be secured, we can manage that as the EU,” they said in Brussels. However, time is pressing, as the EU summit is due to agree on the second half of the EU financial framework by 2027 as early as next week. cr
According to EU representatives, a fundamental agreement on a reform of the European fiscal rules before the end of the year is increasingly unlikely. The differences are too big, several EU insiders told the news agency Reuters.
The EU finance ministers are meeting in Brussels on Friday. Until then, Germany and France were supposed to explore a compromise. Both countries had emphasized at the beginning of November that progress had been made in the negotiations. However, no agreement has been announced since then.
“I don’t think a common approach will be found before the end of the year,” said a person familiar with the matter. There are still too many differences of opinion. “A deal on Friday is very unlikely,” said a second EU representative. A third insider said they were not far away from an agreement but there were still different red lines. However, these could be cleared with more negotiations.
The common position of the member states should actually be negotiated with the European Parliament at the beginning of 2024. Time is short because the Parliament will be newly elected in June 2024 and will dissolve before then. rtr
Just under six months before the European elections in June 2024, many Germans are critical of the work of the EU. In the representative “Europe Check-Up” survey, two out of three Germans state that they are not satisfied with the EU’s current policies. Only 17 percent are satisfied. The survey was commissioned for the first time by the non-partisan initiative “Let’s do something for Europe together.” The opinion research institute Civey surveyed 5,000 Germans on its behalf at the beginning of November.
Moreover, Germans have even less trust in the EU institutions than in the traffic light government: in a direct comparison, only one in ten respondents say that they have more trust in the EU institutions than in the federal government. Trust in the traffic light government is also currently low.
There also seems to be a lack of knowledge about the EU. In response to the question “Could you explain the various EU institutions to a friend?”, 44 percent answered “no”, while 40 percent said “yes.” However, actual knowledge was not surveyed.
“Let’s do something for Europe together” sees a need for action. However, in their opinion, there is also reason to hope: half of those surveyed are concerned about more national rather than European solutions. There is also a desire to talk more about Europe’s positive achievements, say more than six out of ten respondents. lei
Dutch-born Jules Maaten travels a lot. He moves between Brussels, where he heads the European Office of the Friedrich Naumann Foundation, the Netherlands, his home country, and Berlin as the center of German politics. The 62-year-old studied history and law at the Free University of Amsterdam. He joined the Young Liberals at the age of 16. The first European elections took place shortly afterward – a particularly politicizing time: “The first European elections were a breakthrough. I consciously experienced the development of a democratic Europe from the very beginning.”
Maaten initially gained political experience at local level. From 1986 to 1991, he was a local councilor in Amstelveen. “The local work was formative for me. When you talk about problems there, the people affected are just a few meters away.” In the meantime, he also worked in the Dutch parliament, but he was increasingly drawn to international work.
In 1991, Maaten went to London as Secretary General of the Liberal International until he entered the European Parliament in Brussels in 1999. Ten years earlier, he had already run unsuccessfully for this position. He served two terms as a member of the European Liberal and Democratic Party and was put forward as the lead candidate in 2004. He always tried to keep his experience as a local politician in mind. But Maaten admits: “It’s not so easy to take that with you when you go to Brussels.”
For ten years, he was a member of the Committee on the Environment, Public Health and Food Safety (ENVI). His most important dossier was his role as rapporteur for the Tobacco and Alcohol Directive. “The big warnings on cigarette packets today are my fault,” he says jokingly.
The former MEP believes that many issues “must remain national issues.” Especially in the areas of health, education and social policy. However, there are also “exceptions where European cooperation brings more advantages.” For example, given migration, there is “no other solution than a European one.” But “it is very difficult to distinguish between what Europe should and should not do.” For Maaten, the guiding principle for decision-making is the question: “What can help the citizens? If it is regulated at European level, at national or even local level?”
His assessment of the European Commission’s climate policy is largely positive: “There has been a lot of progress.” However, he is currently experiencing counter-pressure, which may manifest in a new Commission. “But that’s normal, in politics you take two steps forward and one step back.” In his opinion, reducing the radicalism with which the Green Deal is pushed forward would not be a bad thing.
Following his political mandate, Maaten’s path led him to the Friedrich Naumann Foundation, where he has worked since 2010. Initially in posts in South Africa and the Philippines. In 2022, he took over the management of the EU office. He is currently working on a project called Europe2050, in which he and his team are developing and discussing long-term visions for Europe. For example, what a possible relationship with the UK or Turkey could look like.
A Dutchman representing a German foundation may be unusual, but for Maaten, it was an obvious step. He learned German as a child – “mainly from watching Sportschau.” In his political thinking, he is now more German than Dutch. Nevertheless, he follows Dutch politics with interest. Hence Timmermans’ decision to leave the Commission and stand as a candidate in the national parliamentary elections. Maaten, who worked with Timmermans in another capacity as an MEP, does not have a bad word to say about the Social Democrat: “I hold him in high esteem. His personality is not easy but he really knows what he’s doing.” Like many, Maaten had also calculated Timmermans’ chances of becoming Prime Minister. However, his election result has now fallen behind that of right-wing populist Geert Wilders, who is considered a supporter of a referendum on leaving the EU. Clara Baldus