COP28 agenda + Gas embargo + Reconstruction funds

Dear reader,

It is a determined battle that the foreign ministers of the NATO states are waging at their two-day meeting in Brussels. It is a battle against the evil narrative of allegedly spreading Ukraine fatigue. They all reaffirmed their unwavering support for Ukraine, said Jens Stoltenberg.

It sounded like an incantation given the growing uncertainty about the financing of Western military aid and the military stalemate on the ground. At least, the NATO Secretary General was able to point to various pledges made in recent days. Germany had promised €8 billion for next year, the Netherlands more than €2 billion. And Romania had opened a training center to train pilots from Ukraine on F-16 fighter planes. The USA and Finland had also promised more air defense missiles and ammunition, said Stoltenberg.

After yesterday’s kick-off, the meeting continues today with the NATO-Ukraine Council, for the first time at the ministerial level and with Ukrainian counterpart Dmytro Kuleba. “We will support Ukraine for as long as it needs us,” emphasized Foreign Minister Annalena Baerbock in the run-up to the meeting. For Ukraine, it is also about liberating its population from brutal oppression in the Russian-occupied territories. Security and peace in Ukraine is not least an assurance of peace throughout Europe.

However, that NATO is not quite so united was evident elsewhere: the plan was actually to formally admit Sweden to the defense alliance at a ceremony on Wednesday and raise the blue and yellow flag of the 32nd member in front of NATO headquarters. However, Turkey and Hungary have still not finalized the ratification of the accession protocol despite promises made at the July summit in Vilnius. The parliament in Ankara has yet to approve.

The foreign ministers of the two NATO states had to listen to some plain language from their counterparts. All it takes is a phone call from President Recep Tayyip Erdoğan to his MPs, diplomats say, and Sweden’s accession could still happen before the end of the year.

Your
Stephan Israel

Climate Commissioner Hoekstra: traveling for the climate

By

Lukas Knigge

COP28, the most important UN climate conference since the Paris Summit 2015, is held in Dubai this year. For the first time, around 200 states of the UNFCCC framework convention will officially review their efforts in the form of the Global Stocktake (GST) and lay important foundations for future measures. The host, the United Arab Emirates (UAE), is expecting up to 70,000 visitors from all over the world to attend the conference from 30 November to 12 December.

For Europe, the new Climate Commissioner Wopke Hoekstra is the highest-ranking negotiator in Dubai. He has been in the office in Brussels for eight weeks but has hardly been at his actual workplace. Since then, he has traveled to 13 countries and taken part in over 60 face-to-face meetings and conferences. Hoekstra is doing what many missed about his predecessor Frans Timmermans: Instead of working on legislation in Brussels, he is making contacts full-time around the globe, forging alliances and trying to advance the European climate agenda.

Difficult talks in Riyadh and Beijing

In particular, his trips to China and the oil and gas-producing countries Saudi Arabia and the United Arab Emirates are likely to have served to prepare a very central European project for COP28: The structure of the “Loss and Damage” fund, agreed at COP27, is practically ready. Now it is a question of who provides how much capital. For Europe, one thing is clear: those who have achieved “significant growth” in recent decades with the help of fossil fuels should take responsibility for compensating for climate damage in the most affected countries. And that includes China, Saudi Arabia and the UAE.

In addition, Europe is pushing for a decision to phase out or phase down the use of fossil fuels. This will be one of the most contentious issues, not least because it directly affects the business model of the host country, the UAE. Nevertheless, Hoekstra is reported to have repeatedly pushed for a formulation on fossil fuels during his talks with COP28 President Sultan Al Jaber.

Balanced travel program

However, Hoekstra was also active in the global South. Primarily because the industrialized countries still need to implement confidence-building measures, as the promise of US$100 billion in annual climate aid for the South will only be achieved after a significant delay. Nevertheless, or perhaps precisely for this reason, Linda Kalcher, Executive Director of the Brussels-based think tank Strategic Perspectives, considers Hoekstra’s choice of destinations to be balanced. There is a balance between the countries of the Global South and the Global North. Hoekstra wants to listen to the various partners. “That is important to build trust.”

Hoekstra’s lack of expertise in relation to the climate negotiations has long been a major point of criticism. For Kalcher, this is incomprehensible, also because the absence of the well-known Timmermans is not a risk. On the one hand, because Hoekstra’s experience as finance minister in the Netherlands could be an advantage with regard to the technical issues surrounding the loss-and-damage fund. Secondly, because Spanish Environment Minister Teresa Ribera will represent the EU as Council President at COP28.

Ribera is familiar with international climate negotiations. She has a reputation for being an extremely well-connected and respected negotiator. “It is reassuring that the Spanish Presidency is representing the EU at COP28,” says Kalcher. That is a good combination with the new Commissioner.

What is on the COP28 agenda?

Officially, the Global Stocktake (GST) is intended to result in a legally binding decision by the conference: What it contains and what future framework conditions it will lay down will be hotly disputed until the very last minute. After all, they will be reflected in the next national climate plans (NDCs), submitted in 2025. Europe is likely to be one of the most ambitious, with a carbon reduction target for 2035 of probably 90 to 95 percent.

The goal of tripling global renewable energy capacity by 2030 and doubling energy efficiency is also on the conference agenda and is intended to drive forward the global energy transition. The goal is supported by a large number of countries, which is why it can be assumed that this will be one of the agreements reached at the COP in Dubai.

Health and climate a topic for the first time

For the first time, the topic of health in the context of climate change is to be given broad coverage. An alliance of scientists, states and civil society wants to promote a greater focus on the risks of the climate crisis for all populations. Forest protection will also feature prominently. The end of deforestation has often been decided upon but never implemented. Without an end to the destruction of forests, there will be no chance of achieving the 1.5-degree target. However, it is unclear whether the topic will be part of the official decision in Dubai.

Geopolitical crises will not be on the official program but will be hotly debated: The conference begins with the “Climate Action Summit” of many heads of state and government, who will also exchange views on geopolitics on the sidelines of the meeting. Commission President Ursula von der Leyen will also be traveling to Dubai for the event. The war over Gaza and the Russian attack on Ukraine will dominate the atmosphere, as will the tensions between the USA and China, the global inflation and debt crisis and the alarm signals of the climate crisis.

EU explores embargo on Russian gas

In the trilogue on the Gas Market Regulation, European legislators continue to examine options for member states to prevent the import of Russian gas. The final trilogue was actually scheduled for the night from Monday to Tuesday. However, since eight points could not be agreed on, a political agreement is now to be reached on December 8. One of the outstanding issues is the role of Russian gas imports, according to reports from negotiating circles yesterday.

The Polish rapporteur Jerzy Buzek (EPP) had introduced an article that would have obliged the Member States to stop importing gases from Russia via pipeline or LNG terminals. This Article 3a was deleted on Monday night, according to an internal negotiation document Table.Media was able to see.

EU states should be able to refuse LNG imports for neighboring countries

However, a ban is not yet completely off the table, according to information from negotiating circles yesterday. However, there is uncertainty among the legal services of the EU institutions as to whether and how import restrictions can be enforced. This is due to WTO rules on the one hand, but also to the principle that the EU states can decide independently on their energy mix.

The proposal from the Council’s general approach to leave it up to the member states to decide whether to ban gas imports from Russia is still under discussion. According to the negotiation document from Monday night, a new feature is that EU states with LNG terminals can reject requests from other member states that would like to import Russian gas via such a terminal.

Agreement failed mainly due to hydrogen network planning

However, the main reason for the lack of agreement in the most recent trilogue was the dispute over which institution should carry out the long-term network planning for hydrogen pipelines. The Parliament wants to transfer the task to the existing association of transmission system operators ENTSOG and hopes that this will speed up the development of the hydrogen network.

The Council and Commission, on the other hand, want to establish an independent European Network of Hydrogen Network Operators (ENNOH). The Commission is now to develop a technical solution.

Mandatory joint gas purchasing probably off the table

At least for seven other outstanding points, political guidelines were agreed on Monday night – including imports of Russian gas. The Parliament’s wish to make joint gas procurement mandatory during an energy crisis is likely to be off the table. “We can accept that as a Parliament,” said negotiating circles yesterday. However, this point must be part of an overall solution to all outstanding issues.

However, the Parliament would still like to include hydrogen in joint gas purchasing. As a compromise, the Council has proposed including a declaration of intent in a recital to procure hydrogen throughout the EU when sufficient quantities are available.

Meanwhile, criticism of Monday’s agreement on the Gas Market Directive was voiced in Parliament yesterday. “The possibility for member states to individually review whether gas transmission system operators can continue to keep and operate their hydrogen pipelines after 2030, unfortunately, plays into the hands of the Green Ministry of Economic Affairs and the German government in their radical upheaval of German industry,” said Christian Ehler (CDU). ber

EU Commission approves reconstruction funds for Berlin

The EU Commission gave the green light on Tuesday for the disbursement of €4 billion from the Covid recovery program to Germany. If the Council of Member States agrees as expected in December, the first tranche from the Next Generation EU program can flow to Berlin. The German government applied for the payment in mid-September.

In total, a good €30 billion has been reserved for Germany until the end of 2026 in the program launched in 2021. €14 billion is expected to flow in 2024 in two further tranches. However, the EU funds will hardly help the budget holders of the traffic light coalition to overcome the current financial bottlenecks, as they have already been booked: “The grants are already included in the federal government’s financial plan,” said a spokesperson for the Federal Ministry of Finance upon request.

In order to receive the funds from the Recovery and Resilience Facility (ARF), the federal government had to provide evidence of 36 individual reforms or investments. The EU funds are now refinancing federal spending on things such as the environmental bonus for EVs, the expansion of the charging infrastructure and the decarbonization of industry. The funds from Brussels are also used for the digitalization of administration and laptops for teachers. tho

First post-pandemic EU-China summit in Beijing

The EU and China are in the final preparations for next week’s summit in Beijing. As the European External Action Service (EEAS) announced on Tuesday, the Deputy Secretary-General for Political Affairs at the EEAS, Enrique Mora, and China’s Vice Foreign Minister, Sun Weidong, exchanged views on several topics such as the war in Ukraine, the situation in the Middle East and stability in the Taiwan Strait and the South China Sea. At Monday’s meeting, the EU once again urged China to participate in a peaceful solution to the war in Ukraine.

The EU-China summit will be held next Thursday and Friday in Beijing. EU Commission President Ursula von der Leyen and EU Council President Charles Michel will meet China’s President Xi Jinping; Premier Li Qiang will then chair the actual summit alongside the EU representatives. The list of topics is long. It is very likely that Beijing will once again express its disapproval of the EU investigation into Chinese EVs.

After several years of video links, the summit will now be held in person for the first time since 2019. In 2019, Donald Tusk and Jean-Claude Juncker still represented the EU. On the Chinese side, it was Premier Li Keqiang. Xi received Charles Michel in Beijing in December 2022. He last met von der Leyen in April, shortly after the EU Commission President gave a keynote speech on China. ari

Slovakian truckers threaten to block Ukrainian border

Slovakian truck drivers are threatening to block the country’s most important border crossing with Ukraine from Friday. This follows criticism of cheap competition from Ukraine. The truckers want the EU to take measures to restrict competition with Ukrainian hauliers, said the head of the Slovakian truck drivers’ association UNAS.

Polish truck drivers have been blocking several border crossings to Ukraine since early November. They are demanding that the European Union reintroduce a permit system for Ukrainian truckers entering the EU and for EU truck drivers entering Ukraine, with exceptions for humanitarian aid and military supplies. The permits were scrapped following Russia’s invasion of Ukraine last year.

UNAS head Stanislav Skála said they would wait until Thursday for a reaction from the Transport Ministry before making a final decision on the blockade. The EU transport ministers will meet in Brussels on December 4. However, he had no great hopes of a breakthrough. “It seems that neither the Ukrainian side nor the (European) Commission are willing to back down,” he said.

Ukraine is criticizing the drivers’ protest because it is hindering exports and preventing the delivery of essentials such as LPG to the country. rtr

Finland closes last border for passenger traffic to Russia

Finland will close its last border crossing to Russia, which is still open for passenger traffic, for the time being. This was announced by Finnish Prime Minister Petteri Orpo at a televised press conference on Tuesday. Most recently, only one border crossing north of the Arctic Circle remained open.

Finland has a 1,340-kilometer border with Russia. The only border crossing between Finland and Russia at Raja-Jooseppi that is still open for passenger traffic is to be closed from Thursday, initially for two weeks. Only the Vainikkala border station in south-eastern Finland will remain open for rail freight traffic.

The Finnish government accuses Moscow of deliberately allowing asylum seekers without valid papers to enter Finland. “Russia has caused this situation and it can also stop it,” said Prime Minister Orpo. The sharp rise in the number of asylum seekers entering Finland was “an organized activity” and not a genuine emergency. Given the increase in arriving asylum seekers, the EU border protection agency Frontex announced last week that it would soon send 50 officers, additional personnel and patrol vehicles to Finland. These should help with the registration of migrants, checking documents and as interpreters, for example. rtr

Un criticizes Denmark’s plans to send asylum seekers to Rwanda

The UN Committee against Torture has expressed concern about Denmark’s efforts to transfer asylum seekers to third countries such as Rwanda while their applications are being examined. The reason for this is concern for the safety of migrants.

The criticism comes two weeks after the UK Supreme Court ruled that Rwanda could not be considered a safe third country, blocking similar plans by the UK to transfer asylum seekers to Rwanda. British Prime Minister Rishi Sunak said he would pass an emergency law to declare Rwanda a safe destination for migrants.

Denmark has pursued an increasingly tough immigration policy over the past decade and passed a law in 2021 allowing refugees arriving on Danish soil to be taken to asylum centers in a partner country. Last year, Denmark agreed with Rwanda to look into setting up a program under which asylum seekers arriving in Denmark could be transferred to the African country. The Danish government is now trying to set up a similar program with the EU or other EU members. So far, however, no migrants have been sent to Rwanda.

Denmark to stick to the project

“It remains the government’s goal to relocate asylum processing to a partner country in collaboration with the EU,” Kaare Dybvad Bek, Danish Minister for Immigration and Integration, told Reuters in writing. The UK’s ruling does not change the fact that new solutions are needed.

In a report, the UN committee expressed concern about Danish legislation and recommended revising it in line with international standards. Italy announced this month that it would set up camps in Albania to house migrants trying to reach land. German Chancellor Olaf Scholz indicated that he would be open to examining Italy’s plans in Albania. rtr

Banks are granting fewer loans to companies

Lending to companies in the eurozone has fallen for the first time in eight years as a result of the ECB’s tight interest rate hike policy. Financial institutions in the currency area granted 0.3 percent fewer loans to companies in October than in the same month last year, as the European Central Bank (ECB) announced on Tuesday.

The last time lending to companies shrank was in July 2015, when the eurozone economy threatened to slide into deflation. In September, it had still managed to grow by a mere 0.2 percent. Borrowing costs for companies have risen sharply in the wake of the ECB’s interest rate hikes. In addition, many companies are holding back on investments due to the weak economy.

The ECB has now raised its key rates ten times in a row since summer 2022. In October, it took a break at its interest rate meeting because inflation had already fallen sharply. The key deposit rate on the financial market, which financial institutions receive from the central bank for parking surplus funds, is currently 4.00 percent. In June 2022, the rate was still at minus 0.50 percent. rtr

Artificial intelligence: Berlin and Paris jeopardize European compromise

By David Marti and Nicolas Mayencourt

David Marti is program manager for AI at the non-profit Swiss think tank Pour Demain and Nicolas Mayencourt is founder and CEO of the cybersecurity company Dreamlab Technologies in Bern.

The EU law on artificial intelligence (AI Act) could fail shortly before it is passed. A few days ago, Germany and France backed down under pressure from individual domestic AI companies. Berlin and Paris believe that the long-negotiated consensus could inhibit innovation.

In fact, the opposite is the case, as a comparison of AI with the pharmaceutical industry shows. Very powerful AI systems such as GPT-4, for example, can be compared with a new category of medication that has enormous potential but also entails risks.

While drugs are tested for efficacy and safety by default before they are approved, the current proposal of the EU AI law provides for stricter safety checks for the best-performing models. This tiered risk approach is therefore moderate and focuses on the small number of basic models such as GPT-4, on which ChatGPT is based.

Open source is an important principle for innovation. However, the most powerful AI models should all be subject to a safety check. Open source is a poor argument for exceptions. Drugs without patent protection must also undergo clinical trials.

Powerful AI models are like infrastructure, say the critics. Safety checks should therefore primarily be carried out for the application that serves the end user. In terms of medicines, this would mean that primarily doctors and pharmacists would have to provide proof of safety, not the developers at pharmaceutical companies. This would be unaffordable and would primarily affect thousands of SMEs instead of a few large corporations.

Another objection is that any regulations for companies would inhibit innovation: On the contrary, the pharmaceutical industry shows that a strong focus on safety enables innovation in the first place. With only voluntary rules, the risk for application developers and customers is too high – and legal uncertainty leads to slow adoption. According to a study by the think tank Pour Demain, the unclear legal framework is also a key factor in why organizations in the energy and healthcare sectors are hesitant to introduce AI.

The EU’s AI law is far from perfect. But it is a broad-based compromise that promotes the potential of AI and minimizes possible risks – and will have a global impact. A look at innovation in the pharmaceutical industry shows that many of the arguments now being put forward by Germany and France are short-sighted.

Nicolas Mayencourt is the founder and CEO of Dreamlab Technologies. The Swiss cybersecurity company is organizing the Swiss Cyber Security Days 2024. David Marti is Programme Manager AI at Pour Demain. The non-profit think tank is presenting the AI Safety Prize at the Swiss Cyber Security Days.

EUROPE.TABLE EDITORIAL OFFICE

Till
Hoppe

Sarah
Schaefer

Lukas
Knigge

Corinna
Visser

Markus
Grabitz

Alina
Leimbach

Eric
Bonse

Manuel
Berkel

Stephan
Israel

Claire
Stam

János
Allenbach-Ammann

Dear reader,

It is a determined battle that the foreign ministers of the NATO states are waging at their two-day meeting in Brussels. It is a battle against the evil narrative of allegedly spreading Ukraine fatigue. They all reaffirmed their unwavering support for Ukraine, said Jens Stoltenberg.

It sounded like an incantation given the growing uncertainty about the financing of Western military aid and the military stalemate on the ground. At least, the NATO Secretary General was able to point to various pledges made in recent days. Germany had promised €8 billion for next year, the Netherlands more than €2 billion. And Romania had opened a training center to train pilots from Ukraine on F-16 fighter planes. The USA and Finland had also promised more air defense missiles and ammunition, said Stoltenberg.

After yesterday’s kick-off, the meeting continues today with the NATO-Ukraine Council, for the first time at the ministerial level and with Ukrainian counterpart Dmytro Kuleba. “We will support Ukraine for as long as it needs us,” emphasized Foreign Minister Annalena Baerbock in the run-up to the meeting. For Ukraine, it is also about liberating its population from brutal oppression in the Russian-occupied territories. Security and peace in Ukraine is not least an assurance of peace throughout Europe.

However, that NATO is not quite so united was evident elsewhere: the plan was actually to formally admit Sweden to the defense alliance at a ceremony on Wednesday and raise the blue and yellow flag of the 32nd member in front of NATO headquarters. However, Turkey and Hungary have still not finalized the ratification of the accession protocol despite promises made at the July summit in Vilnius. The parliament in Ankara has yet to approve.

The foreign ministers of the two NATO states had to listen to some plain language from their counterparts. All it takes is a phone call from President Recep Tayyip Erdoğan to his MPs, diplomats say, and Sweden’s accession could still happen before the end of the year.

Your
Stephan Israel

Climate Commissioner Hoekstra: traveling for the climate

By

Lukas Knigge

COP28, the most important UN climate conference since the Paris Summit 2015, is held in Dubai this year. For the first time, around 200 states of the UNFCCC framework convention will officially review their efforts in the form of the Global Stocktake (GST) and lay important foundations for future measures. The host, the United Arab Emirates (UAE), is expecting up to 70,000 visitors from all over the world to attend the conference from 30 November to 12 December.

For Europe, the new Climate Commissioner Wopke Hoekstra is the highest-ranking negotiator in Dubai. He has been in the office in Brussels for eight weeks but has hardly been at his actual workplace. Since then, he has traveled to 13 countries and taken part in over 60 face-to-face meetings and conferences. Hoekstra is doing what many missed about his predecessor Frans Timmermans: Instead of working on legislation in Brussels, he is making contacts full-time around the globe, forging alliances and trying to advance the European climate agenda.

Difficult talks in Riyadh and Beijing

In particular, his trips to China and the oil and gas-producing countries Saudi Arabia and the United Arab Emirates are likely to have served to prepare a very central European project for COP28: The structure of the “Loss and Damage” fund, agreed at COP27, is practically ready. Now it is a question of who provides how much capital. For Europe, one thing is clear: those who have achieved “significant growth” in recent decades with the help of fossil fuels should take responsibility for compensating for climate damage in the most affected countries. And that includes China, Saudi Arabia and the UAE.

In addition, Europe is pushing for a decision to phase out or phase down the use of fossil fuels. This will be one of the most contentious issues, not least because it directly affects the business model of the host country, the UAE. Nevertheless, Hoekstra is reported to have repeatedly pushed for a formulation on fossil fuels during his talks with COP28 President Sultan Al Jaber.

Balanced travel program

However, Hoekstra was also active in the global South. Primarily because the industrialized countries still need to implement confidence-building measures, as the promise of US$100 billion in annual climate aid for the South will only be achieved after a significant delay. Nevertheless, or perhaps precisely for this reason, Linda Kalcher, Executive Director of the Brussels-based think tank Strategic Perspectives, considers Hoekstra’s choice of destinations to be balanced. There is a balance between the countries of the Global South and the Global North. Hoekstra wants to listen to the various partners. “That is important to build trust.”

Hoekstra’s lack of expertise in relation to the climate negotiations has long been a major point of criticism. For Kalcher, this is incomprehensible, also because the absence of the well-known Timmermans is not a risk. On the one hand, because Hoekstra’s experience as finance minister in the Netherlands could be an advantage with regard to the technical issues surrounding the loss-and-damage fund. Secondly, because Spanish Environment Minister Teresa Ribera will represent the EU as Council President at COP28.

Ribera is familiar with international climate negotiations. She has a reputation for being an extremely well-connected and respected negotiator. “It is reassuring that the Spanish Presidency is representing the EU at COP28,” says Kalcher. That is a good combination with the new Commissioner.

What is on the COP28 agenda?

Officially, the Global Stocktake (GST) is intended to result in a legally binding decision by the conference: What it contains and what future framework conditions it will lay down will be hotly disputed until the very last minute. After all, they will be reflected in the next national climate plans (NDCs), submitted in 2025. Europe is likely to be one of the most ambitious, with a carbon reduction target for 2035 of probably 90 to 95 percent.

The goal of tripling global renewable energy capacity by 2030 and doubling energy efficiency is also on the conference agenda and is intended to drive forward the global energy transition. The goal is supported by a large number of countries, which is why it can be assumed that this will be one of the agreements reached at the COP in Dubai.

Health and climate a topic for the first time

For the first time, the topic of health in the context of climate change is to be given broad coverage. An alliance of scientists, states and civil society wants to promote a greater focus on the risks of the climate crisis for all populations. Forest protection will also feature prominently. The end of deforestation has often been decided upon but never implemented. Without an end to the destruction of forests, there will be no chance of achieving the 1.5-degree target. However, it is unclear whether the topic will be part of the official decision in Dubai.

Geopolitical crises will not be on the official program but will be hotly debated: The conference begins with the “Climate Action Summit” of many heads of state and government, who will also exchange views on geopolitics on the sidelines of the meeting. Commission President Ursula von der Leyen will also be traveling to Dubai for the event. The war over Gaza and the Russian attack on Ukraine will dominate the atmosphere, as will the tensions between the USA and China, the global inflation and debt crisis and the alarm signals of the climate crisis.

EU explores embargo on Russian gas

In the trilogue on the Gas Market Regulation, European legislators continue to examine options for member states to prevent the import of Russian gas. The final trilogue was actually scheduled for the night from Monday to Tuesday. However, since eight points could not be agreed on, a political agreement is now to be reached on December 8. One of the outstanding issues is the role of Russian gas imports, according to reports from negotiating circles yesterday.

The Polish rapporteur Jerzy Buzek (EPP) had introduced an article that would have obliged the Member States to stop importing gases from Russia via pipeline or LNG terminals. This Article 3a was deleted on Monday night, according to an internal negotiation document Table.Media was able to see.

EU states should be able to refuse LNG imports for neighboring countries

However, a ban is not yet completely off the table, according to information from negotiating circles yesterday. However, there is uncertainty among the legal services of the EU institutions as to whether and how import restrictions can be enforced. This is due to WTO rules on the one hand, but also to the principle that the EU states can decide independently on their energy mix.

The proposal from the Council’s general approach to leave it up to the member states to decide whether to ban gas imports from Russia is still under discussion. According to the negotiation document from Monday night, a new feature is that EU states with LNG terminals can reject requests from other member states that would like to import Russian gas via such a terminal.

Agreement failed mainly due to hydrogen network planning

However, the main reason for the lack of agreement in the most recent trilogue was the dispute over which institution should carry out the long-term network planning for hydrogen pipelines. The Parliament wants to transfer the task to the existing association of transmission system operators ENTSOG and hopes that this will speed up the development of the hydrogen network.

The Council and Commission, on the other hand, want to establish an independent European Network of Hydrogen Network Operators (ENNOH). The Commission is now to develop a technical solution.

Mandatory joint gas purchasing probably off the table

At least for seven other outstanding points, political guidelines were agreed on Monday night – including imports of Russian gas. The Parliament’s wish to make joint gas procurement mandatory during an energy crisis is likely to be off the table. “We can accept that as a Parliament,” said negotiating circles yesterday. However, this point must be part of an overall solution to all outstanding issues.

However, the Parliament would still like to include hydrogen in joint gas purchasing. As a compromise, the Council has proposed including a declaration of intent in a recital to procure hydrogen throughout the EU when sufficient quantities are available.

Meanwhile, criticism of Monday’s agreement on the Gas Market Directive was voiced in Parliament yesterday. “The possibility for member states to individually review whether gas transmission system operators can continue to keep and operate their hydrogen pipelines after 2030, unfortunately, plays into the hands of the Green Ministry of Economic Affairs and the German government in their radical upheaval of German industry,” said Christian Ehler (CDU). ber

EU Commission approves reconstruction funds for Berlin

The EU Commission gave the green light on Tuesday for the disbursement of €4 billion from the Covid recovery program to Germany. If the Council of Member States agrees as expected in December, the first tranche from the Next Generation EU program can flow to Berlin. The German government applied for the payment in mid-September.

In total, a good €30 billion has been reserved for Germany until the end of 2026 in the program launched in 2021. €14 billion is expected to flow in 2024 in two further tranches. However, the EU funds will hardly help the budget holders of the traffic light coalition to overcome the current financial bottlenecks, as they have already been booked: “The grants are already included in the federal government’s financial plan,” said a spokesperson for the Federal Ministry of Finance upon request.

In order to receive the funds from the Recovery and Resilience Facility (ARF), the federal government had to provide evidence of 36 individual reforms or investments. The EU funds are now refinancing federal spending on things such as the environmental bonus for EVs, the expansion of the charging infrastructure and the decarbonization of industry. The funds from Brussels are also used for the digitalization of administration and laptops for teachers. tho

First post-pandemic EU-China summit in Beijing

The EU and China are in the final preparations for next week’s summit in Beijing. As the European External Action Service (EEAS) announced on Tuesday, the Deputy Secretary-General for Political Affairs at the EEAS, Enrique Mora, and China’s Vice Foreign Minister, Sun Weidong, exchanged views on several topics such as the war in Ukraine, the situation in the Middle East and stability in the Taiwan Strait and the South China Sea. At Monday’s meeting, the EU once again urged China to participate in a peaceful solution to the war in Ukraine.

The EU-China summit will be held next Thursday and Friday in Beijing. EU Commission President Ursula von der Leyen and EU Council President Charles Michel will meet China’s President Xi Jinping; Premier Li Qiang will then chair the actual summit alongside the EU representatives. The list of topics is long. It is very likely that Beijing will once again express its disapproval of the EU investigation into Chinese EVs.

After several years of video links, the summit will now be held in person for the first time since 2019. In 2019, Donald Tusk and Jean-Claude Juncker still represented the EU. On the Chinese side, it was Premier Li Keqiang. Xi received Charles Michel in Beijing in December 2022. He last met von der Leyen in April, shortly after the EU Commission President gave a keynote speech on China. ari

Slovakian truckers threaten to block Ukrainian border

Slovakian truck drivers are threatening to block the country’s most important border crossing with Ukraine from Friday. This follows criticism of cheap competition from Ukraine. The truckers want the EU to take measures to restrict competition with Ukrainian hauliers, said the head of the Slovakian truck drivers’ association UNAS.

Polish truck drivers have been blocking several border crossings to Ukraine since early November. They are demanding that the European Union reintroduce a permit system for Ukrainian truckers entering the EU and for EU truck drivers entering Ukraine, with exceptions for humanitarian aid and military supplies. The permits were scrapped following Russia’s invasion of Ukraine last year.

UNAS head Stanislav Skála said they would wait until Thursday for a reaction from the Transport Ministry before making a final decision on the blockade. The EU transport ministers will meet in Brussels on December 4. However, he had no great hopes of a breakthrough. “It seems that neither the Ukrainian side nor the (European) Commission are willing to back down,” he said.

Ukraine is criticizing the drivers’ protest because it is hindering exports and preventing the delivery of essentials such as LPG to the country. rtr

Finland closes last border for passenger traffic to Russia

Finland will close its last border crossing to Russia, which is still open for passenger traffic, for the time being. This was announced by Finnish Prime Minister Petteri Orpo at a televised press conference on Tuesday. Most recently, only one border crossing north of the Arctic Circle remained open.

Finland has a 1,340-kilometer border with Russia. The only border crossing between Finland and Russia at Raja-Jooseppi that is still open for passenger traffic is to be closed from Thursday, initially for two weeks. Only the Vainikkala border station in south-eastern Finland will remain open for rail freight traffic.

The Finnish government accuses Moscow of deliberately allowing asylum seekers without valid papers to enter Finland. “Russia has caused this situation and it can also stop it,” said Prime Minister Orpo. The sharp rise in the number of asylum seekers entering Finland was “an organized activity” and not a genuine emergency. Given the increase in arriving asylum seekers, the EU border protection agency Frontex announced last week that it would soon send 50 officers, additional personnel and patrol vehicles to Finland. These should help with the registration of migrants, checking documents and as interpreters, for example. rtr

Un criticizes Denmark’s plans to send asylum seekers to Rwanda

The UN Committee against Torture has expressed concern about Denmark’s efforts to transfer asylum seekers to third countries such as Rwanda while their applications are being examined. The reason for this is concern for the safety of migrants.

The criticism comes two weeks after the UK Supreme Court ruled that Rwanda could not be considered a safe third country, blocking similar plans by the UK to transfer asylum seekers to Rwanda. British Prime Minister Rishi Sunak said he would pass an emergency law to declare Rwanda a safe destination for migrants.

Denmark has pursued an increasingly tough immigration policy over the past decade and passed a law in 2021 allowing refugees arriving on Danish soil to be taken to asylum centers in a partner country. Last year, Denmark agreed with Rwanda to look into setting up a program under which asylum seekers arriving in Denmark could be transferred to the African country. The Danish government is now trying to set up a similar program with the EU or other EU members. So far, however, no migrants have been sent to Rwanda.

Denmark to stick to the project

“It remains the government’s goal to relocate asylum processing to a partner country in collaboration with the EU,” Kaare Dybvad Bek, Danish Minister for Immigration and Integration, told Reuters in writing. The UK’s ruling does not change the fact that new solutions are needed.

In a report, the UN committee expressed concern about Danish legislation and recommended revising it in line with international standards. Italy announced this month that it would set up camps in Albania to house migrants trying to reach land. German Chancellor Olaf Scholz indicated that he would be open to examining Italy’s plans in Albania. rtr

Banks are granting fewer loans to companies

Lending to companies in the eurozone has fallen for the first time in eight years as a result of the ECB’s tight interest rate hike policy. Financial institutions in the currency area granted 0.3 percent fewer loans to companies in October than in the same month last year, as the European Central Bank (ECB) announced on Tuesday.

The last time lending to companies shrank was in July 2015, when the eurozone economy threatened to slide into deflation. In September, it had still managed to grow by a mere 0.2 percent. Borrowing costs for companies have risen sharply in the wake of the ECB’s interest rate hikes. In addition, many companies are holding back on investments due to the weak economy.

The ECB has now raised its key rates ten times in a row since summer 2022. In October, it took a break at its interest rate meeting because inflation had already fallen sharply. The key deposit rate on the financial market, which financial institutions receive from the central bank for parking surplus funds, is currently 4.00 percent. In June 2022, the rate was still at minus 0.50 percent. rtr

Artificial intelligence: Berlin and Paris jeopardize European compromise

By David Marti and Nicolas Mayencourt

The EU law on artificial intelligence (AI Act) could fail shortly before it is passed. A few days ago, Germany and France backed down under pressure from individual domestic AI companies. Berlin and Paris believe that the long-negotiated consensus could inhibit innovation.

In fact, the opposite is the case, as a comparison of AI with the pharmaceutical industry shows. Very powerful AI systems such as GPT-4, for example, can be compared with a new category of medication that has enormous potential but also entails risks.

While drugs are tested for efficacy and safety by default before they are approved, the current proposal of the EU AI law provides for stricter safety checks for the best-performing models. This tiered risk approach is therefore moderate and focuses on the small number of basic models such as GPT-4, on which ChatGPT is based.

Open source is an important principle for innovation. However, the most powerful AI models should all be subject to a safety check. Open source is a poor argument for exceptions. Drugs without patent protection must also undergo clinical trials.

Powerful AI models are like infrastructure, say the critics. Safety checks should therefore primarily be carried out for the application that serves the end user. In terms of medicines, this would mean that primarily doctors and pharmacists would have to provide proof of safety, not the developers at pharmaceutical companies. This would be unaffordable and would primarily affect thousands of SMEs instead of a few large corporations.

Another objection is that any regulations for companies would inhibit innovation: On the contrary, the pharmaceutical industry shows that a strong focus on safety enables innovation in the first place. With only voluntary rules, the risk for application developers and customers is too high – and legal uncertainty leads to slow adoption. According to a study by the think tank Pour Demain, the unclear legal framework is also a key factor in why organizations in the energy and healthcare sectors are hesitant to introduce AI.

The EU’s AI law is far from perfect. But it is a broad-based compromise that promotes the potential of AI and minimizes possible risks – and will have a global impact. A look at innovation in the pharmaceutical industry shows that many of the arguments now being put forward by Germany and France are short-sighted.

Nicolas Mayencourt is the founder and CEO of Dreamlab Technologies. The Swiss cybersecurity company is organizing the Swiss Cyber Security Days 2024. David Marti is Programme Manager AI at Pour Demain. The non-profit think tank is presenting the AI Safety Prize at the Swiss Cyber Security Days.