Table.Briefing: Europe

Ukraine crisis + Nuclear power in the Netherlands + EPP deputies on taxonomy

  • Ukraine crisis: EU and NATO go on the offensive
  • Netherlands: new nuclear power plants next to windmills
  • EPP deputies criticize taxonomy criteria
  • Semiconductors: Industry demands massive subsidies
  • Liese: no supply contracts for COVID drug Paxlovid
  • Advertisers and publishers ask Commission to look into Google’s cookie blocking
  • App store: Dutch market regulator fines Apple millions
  • Aviation alliance calls for change in EU climate change rules
  • Elodie Viau (ESA): Space is the key to our connected world
  • Luxembourg and the art of public diplomacy
Dear reader,

Tensions between the West and Russia continue to rise. NATO is on alert, said Secretary General Jens Stoltenberg, and announced that allied troops’ presence in Eastern Europe will be increased. EU Commission President Ursula von der Leyen announced a billion-dollar aid package for Ukraine. The EU again showed its determination to respond quickly with sanctions in the event of a Russian attack. But Russia’s complete exclusion from the Swift international banking system is apparently no longer part of the discussion. Eric Bonse has details on the current situation.

Opposition to the Commission’s draft taxonomy is growing. Some member states have already made their rejection clear, and now criticism is also coming from the ranks of the EPP Group in the European Parliament. The planned conditions for gas-fired power plants are not appropriate and the classification of nuclear power as a transitional solution is generally questionable, according to a letter from the MEPs to Ursula von der Leyen. Read more about the criticisms in the News.

The government in the Netherlands, on the other hand, is likely to see its plans validated by the decision to classify nuclear power as sustainable. Two new nuclear power plants are to be built in the land of windmills, according to the coalition agreement of the new government under Prime Minister Mark Rutte. Unlike Germany, the country wants to move away from gas quickly. But a number of obstacles are likely to make the realization of the nuclear power plants massively more difficult, writes Stephan Israel in his Feature.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

Ukraine crisis: EU and NATO go on the offensive

The EU and NATO want to massively increase the scope of their aid to Ukraine. EU Commission President Ursula von der Leyen announced a new aid package for Ukraine worth billions. She wants to provide €1.2 billion, the CDU politician said in Brussels. However, the EU states still have to agree. Germany has already signaled its agreement.

NATO Secretary General Jens Stoltenberg announced that allied troops in Eastern Europe are to be increased. In addition to the USA, Denmark, Spain, France, and the Netherlands are also involved. NATO is on alert, Stoltenberg said. He did not give a specific reason. The increase is taking place within the framework of the NATO-Russia Founding Act, a diplomat said.

Borrell: ‘Avoid nervous breakdown’

Russia nevertheless reacted indignantly. The deployment of NATO troops “is causing tension to grow”, Kremlin spokesman Dmitry Peskov said in Moscow. He said it was not Russia that was at the root of the current tensions, but the “information campaign” and “hysteria” of the US and NATO. The US had announced that it was withdrawing some of its embassy staff in Kiev.

This is seen as a signal that Washington expects an armed conflict. Great Britain also wants to evacuate its embassy partially. In contrast, the EU said it would not withdraw any diplomats for the time being. “You have to stay calm and do what is necessary, but avoid a nervous breakdown,” EU foreign affairs envoy Josep Borrell said after a video conference of foreign ministers with US Rep. Antony Blinken.

Baerbock wants to return to the negotiating table

It remained unclear why the US and the EU reacted so differently. Neither Borrell nor Baerbock wanted to comment on this. However, both stressed the unity of the West. If there is a Russian attack, the EU will react quickly, Borrell said. The sanctions already announced at the EU summit in December are well advanced.

However, after the meeting of EU foreign ministers, Borrell said that it was also part of deterrence not to disclose details of the planned punitive measures. A complete exclusion of Russia from the international banking system Swift, which had initially been considered, is apparently off the table. Germany, in particular, had resisted this, as it would also affect the gas business.

“The hardest stick is not always the smartest sword,” Baerbock said in response to a question about Swift. What is needed are targeted sanctions that hit individual banks and politicians. But the main goal must be a return to the negotiating table, the Green politician said.

The Normandy format of Germany, France, Russia, and Ukraine will meet for consultations on Wednesday, according to diplomatic sources. The meeting will be held in Paris and at the level of political directors, according to the Russian delegation. Germany and France already brokered the 2015 Minsk agreement between Russia and Ukraine to pacify eastern Ukraine. With rtr

  • European policy
  • International
  • Ukraine
  • USA

Netherlands: new nuclear power plants next to windmills

Two new nuclear power plants will soon be built in the land of windmills. At least, that’s what the new government under Prime Minister Mark Rutte has stipulated in its coalition agreement. The Netherlands is thus joining the club of EU countries, led by France, that also want to rely on nuclear energy in the fight against climate change.

How did this course change come about, and how realistic are the plans? The coalition consists of Prime Minister Mark Rutte’s right-wing liberal VVD, the left-wing liberal D66 of the new Finance Minister Sigrid Kaag, the Christian Democrats (CDA), and the conservative small party ChristenUnie (CU). Rutte’s right-wing liberals and the Christian Democrats have long been in favor of a nuclear energy comeback, while the other two coalition partners have so far been less enthusiastic.

Currently only one nuclear power plant in operation

Silvio Erkens, an MP from the right-wing liberal VVD, is glad that there was no “ideological blockade” on the nuclear issue during the coalition negotiations. The government had reserved €5 billion to kick off the new projects by 2030. The Netherlands previously had only two nuclear power plants, of which the smaller one at Dodewaard was shut down back in 1997. The operating life of the reactor unit at Borssele in the province of Zeeland was most recently extended to 2034. The nuclear power plant, in which RWE has a stake, will then have been in operation for 50 years.

Prime Minister Mark Rutte briefly raised the issue of the location for the new units during the election campaign and has already received several rejections from affected regions. A building site next to the existing nuclear power plant is the only site that is likely to be considered at all in the end. According to Silvio Erkens, the coalition is aware that construction will not be possible without public support.

The parliamentarian from the Rutte party calculates that the government contribution could cover about 25 percent of the costs for the construction of two reactor units. The government is counting on the private sector to contribute to the rest. The EU Commission’s decision on the taxonomy is good news, says Silvio Erkens, who sees interest among pension funds.

Industry and agriculture dependent on gas

Of course, further wind farms are also planned in the North Sea. “We will not put all our money on one horse,” says Silvio Erkens. But nuclear energy is good for securing the basic supply when, for example, there is a lull in the wind. Moreover, offshore wind farms would not be able to cover the strong increase in demand in the future. The Netherlands would need much more electricity in the future since industry and agriculture are still heavily dependent on fossil energy. Even the greenhouses with vegetables and tulips are still heated with electricity from gas-fired power plants.

Building even more gas-fired power plants is not an option for the Netherlands, says Silvio Erkens. The Netherlands deliberately wanted to take a different path than Germany and reduce its dependence on “unfriendly countries”, says Silvio Erkens. For many years, the Netherlands was self-sufficient in gas and a net exporter, thanks to deposits in the North Sea and near Groningen – for a long time one of the largest gas fields in the world.

In the North Sea, reserves are slowly running out, and near Groningen, the government in The Hague would like to cut back production as quickly as possible. In recent years, there have been minor earthquakes there and major damage to more than 10,000 buildings. The government actually has its word with the population in the region to phase out production this year. However, long-term supply contracts, especially with Germany, have recently forced the Netherlands to increase production again. At the turn of the year, the government in The Hague complained to Berlin about Germany’s demand for gas.

Alternative to gas needed by 2040

The Netherlands would need an alternative to gas-fired power plants by 2040 at the latest, says Pieter Boot of the Netherlands Environmental Assessment Agency (PBL). The PBL’s projections assume a 75 percent share of renewable energy by 2030. The open question is how fast the electrification of industry and agriculture will proceed. Nuclear power plants would only make sense at all if the demand for electricity does not rise sharply until after 2030. Only then would a nuclear power plant be operational in time.

If electricity demand grows slowly and steadily, it may be enough to rely on more wind farms. The PBL forecasts 11 gigawatts of capacity for wind farms by 2030, while the new government has recently set targets much higher. Pieter Boot believes it’s possible the Netherlands could go all-in on renewable energy. Theoretically, capacities of up to 60 gigawatts are conceivable. Provided there are sufficient interconnectors and storage capacities.

An additional obstacle to the realization of nuclear power plants is that the Netherlands lacks the know-how. The construction of the two nuclear power plants will soon be 50 years old. Whether the Netherlands will ever build new nuclear power plants therefore also depends on developments in France, says Pieter Boot. Going it alone could be not only expensive for the Netherlands but also risky. If EDF actually builds six new units in France in the next few years, it will be easier to build one or two additional reactors in the Netherlands.

100 percent renewables possible?

Bas Eickhout, a member of the European Parliament for GroenLinks, is critical of the plans, saying that the right-wing liberal VVD was looking for a unique selling point in the election campaign and found it in nuclear power. As a distinction between the strong right-wing populist forces that deny climate change and the parties to the left of center that rely on renewable energy to fight against global warming.

Eickhout doubts that the reactors will be built in the foreseeable future. He expects the government to commission many studies on the subject. However, because of the record length of time, it has taken to form a government, Prime Minister Mark Rutte does not have much more than three years until the next election. Even in the best case, however, it would take 15 to 20 years to build the two nuclear power plants.

In addition, Eickhout believes it is doubtful that private investors will show much interest. The government will have to massively increase financing from public funds. The Green politician is convinced that the Netherlands would be better off aiming for 100 percent renewable energy. The potential in the North Sea is there, and a doubling of capacity is possible. But he fears that the discussion about the comeback of nuclear power will distract from the expansion of renewables and absorb scarce resources unnecessarily. Stephan Israel

  • Climate & Environment
  • Energy
  • Energy policy
  • Natural gas
  • Netherlands
  • Nuclear power
  • Renewable energies
  • Taxonomy

News

Letter to Commission: EPP MEPs criticize taxonomy criteria

In a joint letter sent late last week, several MEPs from the EPP Group addressed EU Commission President Ursula von der Leyen, expressing their “strong concerns” about the proposed criteria for including gas and nuclear power in the EU taxonomy. The conditions envisaged for gas-fired power plants are not appropriate, and the classification of nuclear power as a transitional solution is generally questionable, the letter, obtained by Europe.Table, states.

For example, the signatories consider the planned fuel switch and blending quotas for low-carbon gases from 2026 to be unachievable. In all likelihood, this is neither technically feasible nor can sufficient quantities of climate-friendly hydrogen be expected. Especially since the Commission is standing in its own way. The “unnecessarily” strict criteria for the production of green hydrogen will make it even more unrealistic to meet the requirements of the taxonomy.

In addition, the proposed threshold of 270g CO2e/kWh can currently only be met by highly efficient plants with combined heat and power generation. The MEPs, therefore, call for the threshold value for power plants that only generate electricity to be based on the entire operating period.

The condition that new plants must replace existing ones should even be removed altogether, according to the signatories. “Many member states, such as Germany or Romania, need to significantly expand their gas capacities in order to make the transition to climate neutrality,” the paper says. The Commission’s draft “restricts the market to some players in a questionable way”. Investments in new power plants would be reserved for companies that already have old plants they can replace.

The requirement that the generation capacity of the new plant must not exceed that of the old plant by more than 15 percent must also be removed. After all, considerably higher demand for electricity is to be expected on the way to climate neutrality.

In the European Parliament, the cross-factional rejection is growing, said Peter Liese, environmental policy spokesman for the CDU/CSU group, in a statement. Also, in view of the clear criticism of scientists and experts, it is probably best to “scrap the delegated act on taxonomy”. til

  • Climate & Environment
  • Climate Targets
  • Energy
  • Natural gas
  • Nuclear power
  • Taxonomy

Semiconductors: Industry demands massive subsidies

The German Electrical and Digital Industry Association (ZVEI) has called for massive state aid for the expansion of the chip industry in Europe. With the subsidies that have been promised, the EU states rank “among the distant second” compared to Japan, the USA, China, or South Korea, said ZVEI President Gunther Kegel on Monday. Therefore, the German government should provide at least €10 billion for the industry, which were still provided by the grand coalition.

According to ZVEI, semiconductor production in the EU accounts for around eight percent of global output. The EU Commission has set a target of increasing this share to 20 percent by 2030. The European Chips Act, announced for February 2nd, is intended to create the framework conditions for this. In particular, the proposal will flesh out the relaxed state aid rules under which member states are allowed to subsidize chip factories.

Latest generation semiconductors

Kegel advocated, on the one hand, strengthening Europe’s position in power semiconductors, where local suppliers are already strong. On the other hand, the EU should also try to gain a foothold in the production of the latest generation of semiconductors with structure sizes of less than ten nanometers.

The demand is there: Such semiconductors are needed, for example, for autonomous driving or the networked factory. “The automakers could definitely utilize a corresponding factory in Europe to capacity,” Kegel said. However, the local automotive industry would have to promise to buy chips manufactured here so that the investments in the factories would pay off.

Kegel does not expect the supply bottlenecks to end soon. The chip shortage is expected to last throughout 2022, but the situation is likely to ease at least somewhat from the middle of the year. For the electrical industry, ZVEI nevertheless expects production to grow by around four percent this year. tho

  • China
  • Digitization
  • Semiconductor
  • Technology

Liese: no supply contracts for COVID drug Paxlovid

It is expected that on Thursday, the European Medicines Agency (EMA) will decide whether to approve Pfizer’s COVID drug Paxlovid. This was said by Peter Liese, a member of the EU Parliament, in an interview with journalists. He expects that after a positive EMA vote, the EU Commission will formally approve the drug on the same day or on Friday at the latest.

However, it is uncertain when patients in Germany and Europe will receive the promising drug. According to Liese, neither individual member states nor the EU Commission can currently present concrete supply agreements with Pfizer. He sees the pharmaceutical company as primarily responsible for this: “In the negotiations on the vaccines, Pfizer had already shown itself to be a very stubborn negotiating partner in the summer and fall of 2020, and in some cases had called into question the EU’s liability law,” says the EPP Group’s health policy spokesman.

BMG: negotiations underway

The German Federal Ministry of Health confirmed on request that contract negotiations with Pfizer to purchase one million packs of Paxlovid are still ongoing. However, the BMG had already signed a binding agreement on the reservation of this quota in December 2021. According to the ministry, the first delivery is expected in February 2022, with further tranches to follow throughout 2022.

A spokesman for the EU Commission stated that there is currently no joint procurement for Paxlovid. Information on specific procurement procedures is, in principle, confidential. Therefore, no details about discussions and possible new contracts could be provided at this time.

No substitute for vaccination

Clinical trials have shown that the drug reduces the risk of hospitalizations and deaths in COVID patients by nearly 90 percent. That was true for treatments within three days of initial symptoms, according to Pfizer. Similar values would have been seen for treatments within five days.

However, Liese warned against considering the drug as a substitute for vaccination. The side effects are significant, especially when interacting with other medications. “Anyone who thinks that because of the side effects from vaccinations, you shouldn’t get vaccinated because there is now also a drug, is therefore wrong.” Vaccination is still the most important measure to prevent severe courses and to take the horror out of the pandemic. ank

  • Corona Vaccinations
  • Coronavirus
  • Health

Advertisers and publishers ask Commission to review Google’s cookie blocking policy

German associations have filed a comprehensive complaint against Google with the EU Commission. The goal is to dissuade the company from putting its announcement on the end of third-party cookies into practice. According to the Financial Times, the German media group Axel Springer is the initiator of the complaint addressed to the Commission, which has been signed by eight organizations from the publishing and advertising industry.

On a total of 108 pages, the lawyers from the Hausfeld law firm, which specializes in media and antitrust law, argue that Google intends to withdraw the “elixir of life” from many offerings on the Internet by prohibiting the use of third-party cookies in its browser. Google had already announced this step two years ago but postponed its implementation until the end of 2023.

The complaint paints a dramatic picture: Revenues from advertising could fall by up to 70 percent if Google implements its plans. The billions in revenue generated by the former search engine group, on the other hand, would not be affected by the change. However, as the British market regulator CMA states in its market survey, this estimate is based on a pilot test that does not allow any conclusions to be drawn about a complete transformation of the market.

The same alliance, from the German Newspaper Publishers and Digitalpublishers Association (BDZV) to the Central Association of the German Advertising Industry (ZAW), had already filed a similar complaint against Apple with the German Federal Cartel Office in April 2021. The iPhone manufacturer had severely restricted non-transparent tracking mechanisms both in its in-house browser Safari and in apps. While the office did indeed open proceedings against Apple in June, it did not focus on the tracking blocks.

The complainants were apparently spurred on by previous successes. As recently as November, Google suffered a defeat in the dispute over the €2.4 billion fine for favoring its own price comparison portal. In January, the German Federal Cartel Office established Google’s cross-market significance, which predestines the group for further proceedings.

Google’s plans are still dreams for the future

Nevertheless, the new complaint has a weak foundation: Unlike Apple, Google has not yet implemented its plans – they are not even very concrete. A pilot test with the potential cookie replacement FLOC, in which advertising was allocated directly by the browser, failed to convince either Google’s advertising partners or data protectors.

The company is currently looking for new compromise options within the W3C standardization organization. In addition, European authorities are now similarly critical of the current third-party cookie tracking techniques as Google.

Google itself emphasizes that a reform is necessary in the interest of all: “The goal is to protect the privacy of users and prevent covert tracking while supporting a thriving, ad-funded Web,” a spokeswoman for the company said on Monday. To prevent new billion-dollar fines, Google agreed in December to cooperate with the UK’s market regulator, the CMA. This is intended to ensure that the group does not derive any improper advantages from the transformation of online advertising even at the planning stage. Torsten Kleinz

  • Digitization
  • Google

App store: Dutch market regulator imposes million-dollar fine on Apple

On Monday, the Dutch consumer and market regulator ACM (Autoriteit Consument en Markt) imposed a €5 million fine on Apple. The authority had already ordered the US company in August to ensure dating app providers access to its app store in the Netherlands even if they offer users alternative payment methods (other than Apple’s in-app purchase system).

Apple had claimed in a statement in mid-January that it had complied with the ACM’s demand. The ACM firmly rejected this claim in a statement yesterday: Dating app providers could still not use alternative payment methods but only express their interest in this option.

According to Reuters, Apple would not comment on the ACM fine on Monday. As long as the company continues to defy the Dutch market regulator’s order, it will have to comply with fines of €5 to €50 million per week. koj/rtr

  • Digital policy
  • Digitization
  • Netherlands

Aviation alliance calls for change in EU climate protection requirements

Several airlines and airports have joined forces to call for changes to the European Union’s planned climate change legislation. On Monday, the alliance of nearly 20 companies said that the associated costs do not apply to the same extent to long-haul flights via non-European hubs. There could therefore be a shift to such carriers and higher CO2 emissions.

The signatories include all Lufthansa subsidiaries, Air France KLM, and the major airports Frankfurt, Schiphol/Amsterdam, Munich, and Vienna. Together, they are campaigning for changes to the draft EU legislation presented in July.

According to EU plans, airlines in Europe are to pay more for their CO2 pollution rights in the future, be obliged to blend even more expensive synthetic fuels and pay a kerosene tax. Among other things, the alliance of critics proposes that climate protection price surcharges be based on the entire flight route and not be limited to feeder flights from the EU to hubs such as Istanbul or Dubai. Turkish Airlines and Emirates, for example, use these hubs to collect passengers for long-haul flights. The alliance rejects a kerosene tax altogether.

Ryanair, Easyjet, or Wizz are not involved in the alliance. They do not offer long-haul flights to other EU countries. In principle, however, the industry is in favor of the “Fit for 55” climate protection package, which aims to reduce greenhouse gas emissions by 55 percent by 2030 compared with 1990 levels in order to halt climate change. It is a stage on the road to climate neutrality for the economy by 2050, which aviation has also pledged to achieve. rtr

  • Climate & Environment
  • Climate Policy
  • European policy
  • Mobility

Opinion

Space: the key to our connected world

By Elodie Viau

Elodie Viau, Director of Telecommunications & Integrated Applications (D/TIA), and Head of ECSAT at the European Space Agency (ESA).

Our world is interconnected. Whether telecommunications, navigation, environmental protection or logistics, whether education, health, disaster prevention, or the financial markets: Not a single one of our complex systems, with which we regulate our economy, society, climate protection, transport, and our international security, can do without high-speed digital networks. And none of them can function without the technologies and platforms in space. Space is key to our interconnected world. Satellites, constellations, and space stations are not outposts but central components of our global communications.

The European Space Agency (ESA) has been investing in this heart of our connectivity for many years. In addition to missions in space, Earth observation, and navigation, the organization works with 22 member states on space-based telecommunications, technologies, and systems that develop their added value and benefits on Earth. The ESA-TIA Directorate – TIA stands for “Telecommunications & Integrated Applications” – consistently focuses on applications of space systems on Earth.

The focus is on three strategic program lines driving breakthrough innovations in telecommunications and intelligent networking. ESA-TIA supports the new 5G and 6G mobile communications standards, designs earth- and space-based communications networks, and invests in future technologies such as laser and quantum communications.

Cost-effective and environmentally compatible global networking

The goal is to provide member states, industries, and companies in Europe with effective tools and platforms and to bring innovative business models and applications to market. Autonomous cars and transport, climate protection and monitoring, supercomputers and artificial intelligence, the security of our data, the provision of broadband, and efficient disaster protection with real-time reactivity can only be achieved with the help of space-based systems and their seamless integration into terrestrial networks.

ESA-TIA develops platforms that enable us to massively reduce the cost of global connectivity, exponentially increase its efficiency and environmental impact, and strengthen the competitiveness of our companies.

High-tech for Europe: Across institutions, companies, and sectors, ESA-TIA forges cross-cutting partnerships, orchestrates industrial and institutional players, drives innovation, research and development, and ensures shoulder-to-shoulder between the public sector and private investors. Europe needs its own sovereign and secure access to space. Our space technologies are a guarantor and driver for us to compete globally, protect our interests and continue to prosper for the benefit of all.

  • Climate & Environment
  • European policy
  • Technology

Apéro

Public diplomacy, in part, is the art of advocating for one’s own country’s concerns and perspectives through public speech and action and raising awareness of both among others. This form of diplomacy is not necessarily a great strength of German politicians. Helmut Kohl came closest to achieving this in Gorbachev’s dacha in July 1990, Helmut Kohl, once again, and Jacques Chirac at the graves of Verdun in 1984, and of course Willy Brandt with his genuflection at the memorial for the victims of the Warsaw ghetto in 1970.

What all three have in common: It’s the gestures, not the words. Three images for eternity. What did Brandt say in Warsaw? Though recordings can be found even today, his words are barely known anymore.

The art of public diplomacy is considered soft power. Hardly anyone masters it as virtuously as representatives of the Grand Duchy of Luxembourg. The small country in the heart of Western Europe is completely overrepresented in the media, considering its actual relevance.

Luxembourg, with a population of just over 600,000, is more visible in Germany than Poland (almost 38 million), Bulgaria (6.5 million), Croatia (4 million), and Slovakia (almost 5.5 million) combined. The methodology here is simple: be noticeable. With language – here, the Luxembourgers have a strategic advantage due to their widespread quadrilingualism – and with a certain dash of self-irony. This contrasts markedly with the rumbling, blustering tone of many German or Eastern European politicians.

Sample: Luxembourg’s Foreign Minister Jean Asselborn noted en passant yesterday that he has something in common with Sergei Lavrov, the Russian foreign minister: “Lavrov has been foreign minister as long as I have, since 2004, so we know each other. He’s number two, and I’m number three – in terms of time, not otherwise.”

It seems like a touch of presumption, but in truth, it is a small, superficially inconsequential joke at one’s own expense. But it still makes you listen. Being important is always relative, whether it’s Jean Asselborn or Jean-Claude Juncker. And those who can make fun of themselves open the ears of their fellow human beings to what else needs to be said.

It will be interesting to see when Olaf Scholz and Annalena Baerbock discover this tool for themselves. Many in Europe think Germany is very important. And then they experience Germany in its real, current state. Or perhaps the chancellor and foreign minister will opt to continue following the German paragons and preferably communicate in silence. Falk Steiner

Europe.Table Editorial Office

EUROPE.TABLE EDITORS

Licenses:
    • Ukraine crisis: EU and NATO go on the offensive
    • Netherlands: new nuclear power plants next to windmills
    • EPP deputies criticize taxonomy criteria
    • Semiconductors: Industry demands massive subsidies
    • Liese: no supply contracts for COVID drug Paxlovid
    • Advertisers and publishers ask Commission to look into Google’s cookie blocking
    • App store: Dutch market regulator fines Apple millions
    • Aviation alliance calls for change in EU climate change rules
    • Elodie Viau (ESA): Space is the key to our connected world
    • Luxembourg and the art of public diplomacy
    Dear reader,

    Tensions between the West and Russia continue to rise. NATO is on alert, said Secretary General Jens Stoltenberg, and announced that allied troops’ presence in Eastern Europe will be increased. EU Commission President Ursula von der Leyen announced a billion-dollar aid package for Ukraine. The EU again showed its determination to respond quickly with sanctions in the event of a Russian attack. But Russia’s complete exclusion from the Swift international banking system is apparently no longer part of the discussion. Eric Bonse has details on the current situation.

    Opposition to the Commission’s draft taxonomy is growing. Some member states have already made their rejection clear, and now criticism is also coming from the ranks of the EPP Group in the European Parliament. The planned conditions for gas-fired power plants are not appropriate and the classification of nuclear power as a transitional solution is generally questionable, according to a letter from the MEPs to Ursula von der Leyen. Read more about the criticisms in the News.

    The government in the Netherlands, on the other hand, is likely to see its plans validated by the decision to classify nuclear power as sustainable. Two new nuclear power plants are to be built in the land of windmills, according to the coalition agreement of the new government under Prime Minister Mark Rutte. Unlike Germany, the country wants to move away from gas quickly. But a number of obstacles are likely to make the realization of the nuclear power plants massively more difficult, writes Stephan Israel in his Feature.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Ukraine crisis: EU and NATO go on the offensive

    The EU and NATO want to massively increase the scope of their aid to Ukraine. EU Commission President Ursula von der Leyen announced a new aid package for Ukraine worth billions. She wants to provide €1.2 billion, the CDU politician said in Brussels. However, the EU states still have to agree. Germany has already signaled its agreement.

    NATO Secretary General Jens Stoltenberg announced that allied troops in Eastern Europe are to be increased. In addition to the USA, Denmark, Spain, France, and the Netherlands are also involved. NATO is on alert, Stoltenberg said. He did not give a specific reason. The increase is taking place within the framework of the NATO-Russia Founding Act, a diplomat said.

    Borrell: ‘Avoid nervous breakdown’

    Russia nevertheless reacted indignantly. The deployment of NATO troops “is causing tension to grow”, Kremlin spokesman Dmitry Peskov said in Moscow. He said it was not Russia that was at the root of the current tensions, but the “information campaign” and “hysteria” of the US and NATO. The US had announced that it was withdrawing some of its embassy staff in Kiev.

    This is seen as a signal that Washington expects an armed conflict. Great Britain also wants to evacuate its embassy partially. In contrast, the EU said it would not withdraw any diplomats for the time being. “You have to stay calm and do what is necessary, but avoid a nervous breakdown,” EU foreign affairs envoy Josep Borrell said after a video conference of foreign ministers with US Rep. Antony Blinken.

    Baerbock wants to return to the negotiating table

    It remained unclear why the US and the EU reacted so differently. Neither Borrell nor Baerbock wanted to comment on this. However, both stressed the unity of the West. If there is a Russian attack, the EU will react quickly, Borrell said. The sanctions already announced at the EU summit in December are well advanced.

    However, after the meeting of EU foreign ministers, Borrell said that it was also part of deterrence not to disclose details of the planned punitive measures. A complete exclusion of Russia from the international banking system Swift, which had initially been considered, is apparently off the table. Germany, in particular, had resisted this, as it would also affect the gas business.

    “The hardest stick is not always the smartest sword,” Baerbock said in response to a question about Swift. What is needed are targeted sanctions that hit individual banks and politicians. But the main goal must be a return to the negotiating table, the Green politician said.

    The Normandy format of Germany, France, Russia, and Ukraine will meet for consultations on Wednesday, according to diplomatic sources. The meeting will be held in Paris and at the level of political directors, according to the Russian delegation. Germany and France already brokered the 2015 Minsk agreement between Russia and Ukraine to pacify eastern Ukraine. With rtr

    • European policy
    • International
    • Ukraine
    • USA

    Netherlands: new nuclear power plants next to windmills

    Two new nuclear power plants will soon be built in the land of windmills. At least, that’s what the new government under Prime Minister Mark Rutte has stipulated in its coalition agreement. The Netherlands is thus joining the club of EU countries, led by France, that also want to rely on nuclear energy in the fight against climate change.

    How did this course change come about, and how realistic are the plans? The coalition consists of Prime Minister Mark Rutte’s right-wing liberal VVD, the left-wing liberal D66 of the new Finance Minister Sigrid Kaag, the Christian Democrats (CDA), and the conservative small party ChristenUnie (CU). Rutte’s right-wing liberals and the Christian Democrats have long been in favor of a nuclear energy comeback, while the other two coalition partners have so far been less enthusiastic.

    Currently only one nuclear power plant in operation

    Silvio Erkens, an MP from the right-wing liberal VVD, is glad that there was no “ideological blockade” on the nuclear issue during the coalition negotiations. The government had reserved €5 billion to kick off the new projects by 2030. The Netherlands previously had only two nuclear power plants, of which the smaller one at Dodewaard was shut down back in 1997. The operating life of the reactor unit at Borssele in the province of Zeeland was most recently extended to 2034. The nuclear power plant, in which RWE has a stake, will then have been in operation for 50 years.

    Prime Minister Mark Rutte briefly raised the issue of the location for the new units during the election campaign and has already received several rejections from affected regions. A building site next to the existing nuclear power plant is the only site that is likely to be considered at all in the end. According to Silvio Erkens, the coalition is aware that construction will not be possible without public support.

    The parliamentarian from the Rutte party calculates that the government contribution could cover about 25 percent of the costs for the construction of two reactor units. The government is counting on the private sector to contribute to the rest. The EU Commission’s decision on the taxonomy is good news, says Silvio Erkens, who sees interest among pension funds.

    Industry and agriculture dependent on gas

    Of course, further wind farms are also planned in the North Sea. “We will not put all our money on one horse,” says Silvio Erkens. But nuclear energy is good for securing the basic supply when, for example, there is a lull in the wind. Moreover, offshore wind farms would not be able to cover the strong increase in demand in the future. The Netherlands would need much more electricity in the future since industry and agriculture are still heavily dependent on fossil energy. Even the greenhouses with vegetables and tulips are still heated with electricity from gas-fired power plants.

    Building even more gas-fired power plants is not an option for the Netherlands, says Silvio Erkens. The Netherlands deliberately wanted to take a different path than Germany and reduce its dependence on “unfriendly countries”, says Silvio Erkens. For many years, the Netherlands was self-sufficient in gas and a net exporter, thanks to deposits in the North Sea and near Groningen – for a long time one of the largest gas fields in the world.

    In the North Sea, reserves are slowly running out, and near Groningen, the government in The Hague would like to cut back production as quickly as possible. In recent years, there have been minor earthquakes there and major damage to more than 10,000 buildings. The government actually has its word with the population in the region to phase out production this year. However, long-term supply contracts, especially with Germany, have recently forced the Netherlands to increase production again. At the turn of the year, the government in The Hague complained to Berlin about Germany’s demand for gas.

    Alternative to gas needed by 2040

    The Netherlands would need an alternative to gas-fired power plants by 2040 at the latest, says Pieter Boot of the Netherlands Environmental Assessment Agency (PBL). The PBL’s projections assume a 75 percent share of renewable energy by 2030. The open question is how fast the electrification of industry and agriculture will proceed. Nuclear power plants would only make sense at all if the demand for electricity does not rise sharply until after 2030. Only then would a nuclear power plant be operational in time.

    If electricity demand grows slowly and steadily, it may be enough to rely on more wind farms. The PBL forecasts 11 gigawatts of capacity for wind farms by 2030, while the new government has recently set targets much higher. Pieter Boot believes it’s possible the Netherlands could go all-in on renewable energy. Theoretically, capacities of up to 60 gigawatts are conceivable. Provided there are sufficient interconnectors and storage capacities.

    An additional obstacle to the realization of nuclear power plants is that the Netherlands lacks the know-how. The construction of the two nuclear power plants will soon be 50 years old. Whether the Netherlands will ever build new nuclear power plants therefore also depends on developments in France, says Pieter Boot. Going it alone could be not only expensive for the Netherlands but also risky. If EDF actually builds six new units in France in the next few years, it will be easier to build one or two additional reactors in the Netherlands.

    100 percent renewables possible?

    Bas Eickhout, a member of the European Parliament for GroenLinks, is critical of the plans, saying that the right-wing liberal VVD was looking for a unique selling point in the election campaign and found it in nuclear power. As a distinction between the strong right-wing populist forces that deny climate change and the parties to the left of center that rely on renewable energy to fight against global warming.

    Eickhout doubts that the reactors will be built in the foreseeable future. He expects the government to commission many studies on the subject. However, because of the record length of time, it has taken to form a government, Prime Minister Mark Rutte does not have much more than three years until the next election. Even in the best case, however, it would take 15 to 20 years to build the two nuclear power plants.

    In addition, Eickhout believes it is doubtful that private investors will show much interest. The government will have to massively increase financing from public funds. The Green politician is convinced that the Netherlands would be better off aiming for 100 percent renewable energy. The potential in the North Sea is there, and a doubling of capacity is possible. But he fears that the discussion about the comeback of nuclear power will distract from the expansion of renewables and absorb scarce resources unnecessarily. Stephan Israel

    • Climate & Environment
    • Energy
    • Energy policy
    • Natural gas
    • Netherlands
    • Nuclear power
    • Renewable energies
    • Taxonomy

    News

    Letter to Commission: EPP MEPs criticize taxonomy criteria

    In a joint letter sent late last week, several MEPs from the EPP Group addressed EU Commission President Ursula von der Leyen, expressing their “strong concerns” about the proposed criteria for including gas and nuclear power in the EU taxonomy. The conditions envisaged for gas-fired power plants are not appropriate, and the classification of nuclear power as a transitional solution is generally questionable, the letter, obtained by Europe.Table, states.

    For example, the signatories consider the planned fuel switch and blending quotas for low-carbon gases from 2026 to be unachievable. In all likelihood, this is neither technically feasible nor can sufficient quantities of climate-friendly hydrogen be expected. Especially since the Commission is standing in its own way. The “unnecessarily” strict criteria for the production of green hydrogen will make it even more unrealistic to meet the requirements of the taxonomy.

    In addition, the proposed threshold of 270g CO2e/kWh can currently only be met by highly efficient plants with combined heat and power generation. The MEPs, therefore, call for the threshold value for power plants that only generate electricity to be based on the entire operating period.

    The condition that new plants must replace existing ones should even be removed altogether, according to the signatories. “Many member states, such as Germany or Romania, need to significantly expand their gas capacities in order to make the transition to climate neutrality,” the paper says. The Commission’s draft “restricts the market to some players in a questionable way”. Investments in new power plants would be reserved for companies that already have old plants they can replace.

    The requirement that the generation capacity of the new plant must not exceed that of the old plant by more than 15 percent must also be removed. After all, considerably higher demand for electricity is to be expected on the way to climate neutrality.

    In the European Parliament, the cross-factional rejection is growing, said Peter Liese, environmental policy spokesman for the CDU/CSU group, in a statement. Also, in view of the clear criticism of scientists and experts, it is probably best to “scrap the delegated act on taxonomy”. til

    • Climate & Environment
    • Climate Targets
    • Energy
    • Natural gas
    • Nuclear power
    • Taxonomy

    Semiconductors: Industry demands massive subsidies

    The German Electrical and Digital Industry Association (ZVEI) has called for massive state aid for the expansion of the chip industry in Europe. With the subsidies that have been promised, the EU states rank “among the distant second” compared to Japan, the USA, China, or South Korea, said ZVEI President Gunther Kegel on Monday. Therefore, the German government should provide at least €10 billion for the industry, which were still provided by the grand coalition.

    According to ZVEI, semiconductor production in the EU accounts for around eight percent of global output. The EU Commission has set a target of increasing this share to 20 percent by 2030. The European Chips Act, announced for February 2nd, is intended to create the framework conditions for this. In particular, the proposal will flesh out the relaxed state aid rules under which member states are allowed to subsidize chip factories.

    Latest generation semiconductors

    Kegel advocated, on the one hand, strengthening Europe’s position in power semiconductors, where local suppliers are already strong. On the other hand, the EU should also try to gain a foothold in the production of the latest generation of semiconductors with structure sizes of less than ten nanometers.

    The demand is there: Such semiconductors are needed, for example, for autonomous driving or the networked factory. “The automakers could definitely utilize a corresponding factory in Europe to capacity,” Kegel said. However, the local automotive industry would have to promise to buy chips manufactured here so that the investments in the factories would pay off.

    Kegel does not expect the supply bottlenecks to end soon. The chip shortage is expected to last throughout 2022, but the situation is likely to ease at least somewhat from the middle of the year. For the electrical industry, ZVEI nevertheless expects production to grow by around four percent this year. tho

    • China
    • Digitization
    • Semiconductor
    • Technology

    Liese: no supply contracts for COVID drug Paxlovid

    It is expected that on Thursday, the European Medicines Agency (EMA) will decide whether to approve Pfizer’s COVID drug Paxlovid. This was said by Peter Liese, a member of the EU Parliament, in an interview with journalists. He expects that after a positive EMA vote, the EU Commission will formally approve the drug on the same day or on Friday at the latest.

    However, it is uncertain when patients in Germany and Europe will receive the promising drug. According to Liese, neither individual member states nor the EU Commission can currently present concrete supply agreements with Pfizer. He sees the pharmaceutical company as primarily responsible for this: “In the negotiations on the vaccines, Pfizer had already shown itself to be a very stubborn negotiating partner in the summer and fall of 2020, and in some cases had called into question the EU’s liability law,” says the EPP Group’s health policy spokesman.

    BMG: negotiations underway

    The German Federal Ministry of Health confirmed on request that contract negotiations with Pfizer to purchase one million packs of Paxlovid are still ongoing. However, the BMG had already signed a binding agreement on the reservation of this quota in December 2021. According to the ministry, the first delivery is expected in February 2022, with further tranches to follow throughout 2022.

    A spokesman for the EU Commission stated that there is currently no joint procurement for Paxlovid. Information on specific procurement procedures is, in principle, confidential. Therefore, no details about discussions and possible new contracts could be provided at this time.

    No substitute for vaccination

    Clinical trials have shown that the drug reduces the risk of hospitalizations and deaths in COVID patients by nearly 90 percent. That was true for treatments within three days of initial symptoms, according to Pfizer. Similar values would have been seen for treatments within five days.

    However, Liese warned against considering the drug as a substitute for vaccination. The side effects are significant, especially when interacting with other medications. “Anyone who thinks that because of the side effects from vaccinations, you shouldn’t get vaccinated because there is now also a drug, is therefore wrong.” Vaccination is still the most important measure to prevent severe courses and to take the horror out of the pandemic. ank

    • Corona Vaccinations
    • Coronavirus
    • Health

    Advertisers and publishers ask Commission to review Google’s cookie blocking policy

    German associations have filed a comprehensive complaint against Google with the EU Commission. The goal is to dissuade the company from putting its announcement on the end of third-party cookies into practice. According to the Financial Times, the German media group Axel Springer is the initiator of the complaint addressed to the Commission, which has been signed by eight organizations from the publishing and advertising industry.

    On a total of 108 pages, the lawyers from the Hausfeld law firm, which specializes in media and antitrust law, argue that Google intends to withdraw the “elixir of life” from many offerings on the Internet by prohibiting the use of third-party cookies in its browser. Google had already announced this step two years ago but postponed its implementation until the end of 2023.

    The complaint paints a dramatic picture: Revenues from advertising could fall by up to 70 percent if Google implements its plans. The billions in revenue generated by the former search engine group, on the other hand, would not be affected by the change. However, as the British market regulator CMA states in its market survey, this estimate is based on a pilot test that does not allow any conclusions to be drawn about a complete transformation of the market.

    The same alliance, from the German Newspaper Publishers and Digitalpublishers Association (BDZV) to the Central Association of the German Advertising Industry (ZAW), had already filed a similar complaint against Apple with the German Federal Cartel Office in April 2021. The iPhone manufacturer had severely restricted non-transparent tracking mechanisms both in its in-house browser Safari and in apps. While the office did indeed open proceedings against Apple in June, it did not focus on the tracking blocks.

    The complainants were apparently spurred on by previous successes. As recently as November, Google suffered a defeat in the dispute over the €2.4 billion fine for favoring its own price comparison portal. In January, the German Federal Cartel Office established Google’s cross-market significance, which predestines the group for further proceedings.

    Google’s plans are still dreams for the future

    Nevertheless, the new complaint has a weak foundation: Unlike Apple, Google has not yet implemented its plans – they are not even very concrete. A pilot test with the potential cookie replacement FLOC, in which advertising was allocated directly by the browser, failed to convince either Google’s advertising partners or data protectors.

    The company is currently looking for new compromise options within the W3C standardization organization. In addition, European authorities are now similarly critical of the current third-party cookie tracking techniques as Google.

    Google itself emphasizes that a reform is necessary in the interest of all: “The goal is to protect the privacy of users and prevent covert tracking while supporting a thriving, ad-funded Web,” a spokeswoman for the company said on Monday. To prevent new billion-dollar fines, Google agreed in December to cooperate with the UK’s market regulator, the CMA. This is intended to ensure that the group does not derive any improper advantages from the transformation of online advertising even at the planning stage. Torsten Kleinz

    • Digitization
    • Google

    App store: Dutch market regulator imposes million-dollar fine on Apple

    On Monday, the Dutch consumer and market regulator ACM (Autoriteit Consument en Markt) imposed a €5 million fine on Apple. The authority had already ordered the US company in August to ensure dating app providers access to its app store in the Netherlands even if they offer users alternative payment methods (other than Apple’s in-app purchase system).

    Apple had claimed in a statement in mid-January that it had complied with the ACM’s demand. The ACM firmly rejected this claim in a statement yesterday: Dating app providers could still not use alternative payment methods but only express their interest in this option.

    According to Reuters, Apple would not comment on the ACM fine on Monday. As long as the company continues to defy the Dutch market regulator’s order, it will have to comply with fines of €5 to €50 million per week. koj/rtr

    • Digital policy
    • Digitization
    • Netherlands

    Aviation alliance calls for change in EU climate protection requirements

    Several airlines and airports have joined forces to call for changes to the European Union’s planned climate change legislation. On Monday, the alliance of nearly 20 companies said that the associated costs do not apply to the same extent to long-haul flights via non-European hubs. There could therefore be a shift to such carriers and higher CO2 emissions.

    The signatories include all Lufthansa subsidiaries, Air France KLM, and the major airports Frankfurt, Schiphol/Amsterdam, Munich, and Vienna. Together, they are campaigning for changes to the draft EU legislation presented in July.

    According to EU plans, airlines in Europe are to pay more for their CO2 pollution rights in the future, be obliged to blend even more expensive synthetic fuels and pay a kerosene tax. Among other things, the alliance of critics proposes that climate protection price surcharges be based on the entire flight route and not be limited to feeder flights from the EU to hubs such as Istanbul or Dubai. Turkish Airlines and Emirates, for example, use these hubs to collect passengers for long-haul flights. The alliance rejects a kerosene tax altogether.

    Ryanair, Easyjet, or Wizz are not involved in the alliance. They do not offer long-haul flights to other EU countries. In principle, however, the industry is in favor of the “Fit for 55” climate protection package, which aims to reduce greenhouse gas emissions by 55 percent by 2030 compared with 1990 levels in order to halt climate change. It is a stage on the road to climate neutrality for the economy by 2050, which aviation has also pledged to achieve. rtr

    • Climate & Environment
    • Climate Policy
    • European policy
    • Mobility

    Opinion

    Space: the key to our connected world

    By Elodie Viau

    Elodie Viau, Director of Telecommunications & Integrated Applications (D/TIA), and Head of ECSAT at the European Space Agency (ESA).

    Our world is interconnected. Whether telecommunications, navigation, environmental protection or logistics, whether education, health, disaster prevention, or the financial markets: Not a single one of our complex systems, with which we regulate our economy, society, climate protection, transport, and our international security, can do without high-speed digital networks. And none of them can function without the technologies and platforms in space. Space is key to our interconnected world. Satellites, constellations, and space stations are not outposts but central components of our global communications.

    The European Space Agency (ESA) has been investing in this heart of our connectivity for many years. In addition to missions in space, Earth observation, and navigation, the organization works with 22 member states on space-based telecommunications, technologies, and systems that develop their added value and benefits on Earth. The ESA-TIA Directorate – TIA stands for “Telecommunications & Integrated Applications” – consistently focuses on applications of space systems on Earth.

    The focus is on three strategic program lines driving breakthrough innovations in telecommunications and intelligent networking. ESA-TIA supports the new 5G and 6G mobile communications standards, designs earth- and space-based communications networks, and invests in future technologies such as laser and quantum communications.

    Cost-effective and environmentally compatible global networking

    The goal is to provide member states, industries, and companies in Europe with effective tools and platforms and to bring innovative business models and applications to market. Autonomous cars and transport, climate protection and monitoring, supercomputers and artificial intelligence, the security of our data, the provision of broadband, and efficient disaster protection with real-time reactivity can only be achieved with the help of space-based systems and their seamless integration into terrestrial networks.

    ESA-TIA develops platforms that enable us to massively reduce the cost of global connectivity, exponentially increase its efficiency and environmental impact, and strengthen the competitiveness of our companies.

    High-tech for Europe: Across institutions, companies, and sectors, ESA-TIA forges cross-cutting partnerships, orchestrates industrial and institutional players, drives innovation, research and development, and ensures shoulder-to-shoulder between the public sector and private investors. Europe needs its own sovereign and secure access to space. Our space technologies are a guarantor and driver for us to compete globally, protect our interests and continue to prosper for the benefit of all.

    • Climate & Environment
    • European policy
    • Technology

    Apéro

    Public diplomacy, in part, is the art of advocating for one’s own country’s concerns and perspectives through public speech and action and raising awareness of both among others. This form of diplomacy is not necessarily a great strength of German politicians. Helmut Kohl came closest to achieving this in Gorbachev’s dacha in July 1990, Helmut Kohl, once again, and Jacques Chirac at the graves of Verdun in 1984, and of course Willy Brandt with his genuflection at the memorial for the victims of the Warsaw ghetto in 1970.

    What all three have in common: It’s the gestures, not the words. Three images for eternity. What did Brandt say in Warsaw? Though recordings can be found even today, his words are barely known anymore.

    The art of public diplomacy is considered soft power. Hardly anyone masters it as virtuously as representatives of the Grand Duchy of Luxembourg. The small country in the heart of Western Europe is completely overrepresented in the media, considering its actual relevance.

    Luxembourg, with a population of just over 600,000, is more visible in Germany than Poland (almost 38 million), Bulgaria (6.5 million), Croatia (4 million), and Slovakia (almost 5.5 million) combined. The methodology here is simple: be noticeable. With language – here, the Luxembourgers have a strategic advantage due to their widespread quadrilingualism – and with a certain dash of self-irony. This contrasts markedly with the rumbling, blustering tone of many German or Eastern European politicians.

    Sample: Luxembourg’s Foreign Minister Jean Asselborn noted en passant yesterday that he has something in common with Sergei Lavrov, the Russian foreign minister: “Lavrov has been foreign minister as long as I have, since 2004, so we know each other. He’s number two, and I’m number three – in terms of time, not otherwise.”

    It seems like a touch of presumption, but in truth, it is a small, superficially inconsequential joke at one’s own expense. But it still makes you listen. Being important is always relative, whether it’s Jean Asselborn or Jean-Claude Juncker. And those who can make fun of themselves open the ears of their fellow human beings to what else needs to be said.

    It will be interesting to see when Olaf Scholz and Annalena Baerbock discover this tool for themselves. Many in Europe think Germany is very important. And then they experience Germany in its real, current state. Or perhaps the chancellor and foreign minister will opt to continue following the German paragons and preferably communicate in silence. Falk Steiner

    Europe.Table Editorial Office

    EUROPE.TABLE EDITORS

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