Ukraine: no quick EU accession + Sanctions against Russia + Corruption scandal + Bicycle strategy

Dear reader,

This news will especially please Luxembourg’s Foreign Minister Jean Asselborn, whose passion for road cycling was the subject of a tragicomedy by Charlotte Wirth, written for Europe.Table a few weeks ago: The EU Parliament’s Transport Committee (TRAN) is calling on the EU Commission to present a cycling strategy – with the aim of doubling the number of kilometers cycled in the EU by 2030. Read more about this in our News today.

The EU-Ukraine summit has begun in Kyiv. While Ukraine is insisting on rapid EU accession, the EU countries are still waiting for a report from the EU Commission on Ukraine’s reform progress in the summer, reports Eric Bonse. Only then will they decide whether to officially open accession negotiations. Meanwhile, in Brussels: Negotiations on the tenth sanctions package against Russia are stalling.

In her column today, my colleague Claire Stam turns her attention to molecular cuisine: The question of whether hydrogen produced with nuclear power can be defined as green is dividing EU member states. Next Tuesday, this will be at the forefront of the trilogue on the Renewable Energy Directive (RED 3). The rapporteur in the Parliament, Markus Pieper (EPP), thinks the Commission is too slow: If it does not present criteria for renewable fuels of non-biological origin by Tuesday, he wants to define them directly in the trilogue.

Your
Leonie Düngefeld

Ukraine: no rapid EU accession, but further support

Von der Leyen and 15 of her commissioners visited Zelenskiy and his cabinet in Kyiv.

By

Eric Bonse

Commission President Ursula von der Leyen announced on Thursday in Kyiv, among other things, the now tenth sanctions package and an “international center for the prosecution of the crime of aggression in Ukraine” to be established in The Hague. She did not yet give details at the EU-Ukraine summit; they are to be worked out later.

The Commission’s visit to Kyiv had mainly symbolic value. Shortly before the anniversary of the Russian invasion on Feb. 24, the EU authority wanted to underline its solidarity. Von der Leyen spoke of a clear signal. “Ukraine has become the center of our continent. The place where our values are upheld, where our freedom is defended and where the future of Europe is written.”

Further financial aid for Kyiv

EU High Representative for Foreign Affairs Josep Borrell announced an expansion of the EU Military Assistance Mission Ukraine (EUMAM) military training mission. EUMAM will train an additional 15,000 Ukrainian soldiers, bringing the total number to 30,000, the Spaniard said after talks with Ukrainian Prime Minister Denys Shmyhal. Experts from the armed forces of EU member states also want to train main battle tank crews in the future. The Leopard 2, which Germany and Poland, among others, plan to supply, is to be used as quickly and efficiently as possible.

The EU Commission also announced further financial and humanitarian aid. For example, around €150 million will be provided for the reconstruction of the energy infrastructure destroyed by Russia. In addition, the EU will provide another 2,400 power generators – on top of the 3,000 that have been delivered since the beginning of the war. Since the beginning of the war, the EU has supported Ukraine with €50 billion, von der Leyen stressed.

EU-Ukraine summit on Friday

The Commission’s informal meeting with President Volodymyr Zelenskiy and the Ukrainian government will be followed today, Friday, by the 24th EU-Ukraine Summit, which Council President Charles Michel will also attend in Kyiv. The heads of state and government of the 27 member states are not represented at this summit. However, they were involved in the preparations through their permanent representatives in Brussels. No major decisions are planned.

The draft summit declaration, available to Europe.Table, condemns Russia’s “unprovoked and unjustified war of aggression.” The EU promises to support Ukraine in this war “for as long as necessary.”

The passages on EU accession turn out to be disappointing for Ukraine. Head of government Denys Shmyhal had announced that his country wanted to join within two years. However, the summit draft does not contain a deadline. Instead, the text refers to the progress report that the EU Commission intends to present in the fall. It also calls for the “full and consistent implementation of the judicial reforms” that Kyiv had promised in 2022.

In order for accession negotiations to take place, all 27 EU member states must give the green light. However, in view of the escalating war and the numerous corruption scandals that have just been uncovered, no quick decision is in sight in Brussels. As a “consolation band-aid,” the EU Commission has announced closer cooperation on European programs – but below the threshold of real membership.

Dispute over sanctions in Brussels

The summit draft also contains a commitment to further sanctions against Russia. However, talks on punitive measures in the Permanent Representatives Committee (Coreper) were suspended in Brussels on Thursday – the differences were too great. Under discussion is a review of the oil price cap imposed in December, a price limit for diesel and other refined products, and a tightening of sanctions against Belarus. In the case of the latter, the main issue is whether sanctions against Belarus should be harmonized with those against Russia in order to also build up pressure on Moscow via Minsk.

Regarding the oil price cap, the EU Commission has proposed to set price ceilings for Russian oil products such as diesel as of Feb. 5. They are to be set at $100 per barrel (159 liters) for Russian diesel and $45 per barrel for heating oil from Russia. For some countries, this goes too far; for others, not far enough. The consultations are to continue over the weekend.

It is unclear whether the deadline for an agreement in Coreper on Sunday can be met. There is also dispute over the tenth package of sanctions to be imposed before the anniversary of the Russian invasion on Feb. 24. Ukraine is calling for penalties to be imposed on trade in Russian diamonds (article only available in German) as well as the Russian nuclear industry. However, Belgium is putting the brakes on diamonds, and several EU states have concerns about Rosatom. Here, too, things are getting tight.

EU Parliament lifts immunity of Cozzolino and Tarabella

Following the corruption affair involving former EU Parliament Vice President Eva Kaili, the EU Parliament has now lifted the immunity of two MEPs, Andrea Cozzolino from Italy and Marc Tarabella from Belgium. Both belonged to the Socialist Group until recently but are now considered non-attached.

Belgian investigators had requested to question them in connection with the corruption affair and influence peddling by Qatar and Morocco. Both, through their lawyers, denied wrongdoing and agreed to respond to questions from Belgian authorities. Tarabella even personally gave his consent in plenary for the waiver of immunity.

Money for foreign advocacy

Cozzolino is accused of being paid in 2019 to advocate in Parliament for the interests of other states and against decisions that could harm those states. Tarabella is suspected of having supported certain positions in favor of a third country in exchange for cash payments over the past two years. According to witnesses, he allegedly received payments totaling €120,000 to €140,000 on several occasions for this purpose.

Greek Eva Kaili and former Italian MP Pier Antonio Panzeri have already been in Belgian custody since December, along with two others. They are charged with corruption and money laundering in connection with alleged payments from Qatar and Morocco.

Kaili’s partner Francesco Giorgi, who is also in custody, confessed to taking bribes and said he suspected Tarabella of receiving money from Qatar, according to a source familiar with the investigation. Giorgi’s lawyer declined to comment. luk/rtr

Habeck: tax breaks would be a strong EU response to IRA

German Minister for Economic Affairs Robert Habeck has floated tax breaks for investments as an EU response to the US Inflation Reduction Act (IRA). “This is a very interesting proposal from the EU Commission,” he said Thursday at the start of his two-day stay in Stockholm after meetings with his Swedish counterpart Ebba Busch and Trade Minister Johan Forssell. “It seems to be the outline of a very strong European response to the IRA.”

Up to now, one would have to apply for every subsidy in the EU with many forms and files. This costs a lot of time, the way via write-offs would be much faster, he said. “We should continue to work on this proposal.” In principle, subsidies should only be granted in exceptional cases for new technology. But since Europe is in danger of falling behind in key fields, he said, it is now necessary to do the pragmatic thing. He also made it clear that subsidies should be spread more widely in order to reduce technological dependence on Asia, for example. In addition to the production of semiconductors and solar modules, Habeck also mentioned battery production.

‘Building green bridges across the Atlantic’

Swedish Minister Busch called the IRA a threat to competition but argued against a subsidy race. “There is a way for a smart and common response to the IRA,” she said. Sweden currently holds the EU Council presidency and wants to coordinate member states’ response to the US program. On Wednesday, the EU Commission presented its plans and also mentioned the option of tax breaks.

“I think we have a good chance to avoid a trade dispute, some say trade war,” Habeck said. The US and the EU would have to work together. “Actually, we should manage to build a green bridge across the Atlantic, especially in the industrial sector.” Cooperation in a US-EU trade and technology council could be the “nucleus” of some kind of joint industrial agreement, he stated. Next week, Habeck will travel to Washington, D.C. with French Economy and Finance Minister Bruno Le Maire to present the EU’s position on the IRA to the US government.

Habeck also wants to campaign in Sweden for the Swedish battery manufacturer Northvolt to build a factory in Schleswig-Holstein. Today, Friday, he wants to visit an R&D laboratory of the company and also meet Northvolt CEO Peter Carlsson there. Northvolt had signaled that construction of the factory could be delayed. The company cited local electricity prices and higher subsidies in the US as reasons. rtr/dpa/leo

EU Parliament votes for stricter rules on political advertising

Elections and referendums in the EU are to become more transparent in the future and outside influence more difficult. On Thursday, the EU Parliament adopted its report for stricter rules on political advertising with a clear majority of 433 votes in favor to 61 against, with 110 abstentions.

Accordingly, only personal data from advertising providers that has been explicitly made available for online political advertising may now be used. This is intended to prevent so-called micro-targeting, in which consumer data and demographic data are used to create personality profiles of Internet users. The Commission’s proposal lacked this restriction. According to the report, fines can be imposed in the event of violations.

Preventing influence from outside

In addition, MEPs voted to prohibit entities based outside the EU from funding political advertising in the EU. To facilitate access to information on political advertising for EU citizens, authorities and journalists, an online register is also to be set up. The register will show who finances advertising, how much it costs and where the money comes from.

With the adoption of the report, negotiations with the Council can begin. The Council adopted its position in December. The new regulations are to be adopted and enter into force in time for the 2024 European elections. luk

Commission to develop cycling strategy

The European Parliament’s Transport Committee (TRAN) calls on the Commission to present a cycling strategy. It should pursue the goal of doubling the number of kilometers cycled in the EU by 2030. The resolution, which was adopted by the Committee, also calls for manufacturers and the supply industry around bicycles, as well as e-bikes and batteries, to be recognized as legitimate partners in the mobility part of the EU industrial strategy. The Commission and member states should strive to establish the “Made in Europe” brand for bikes and accessories. This would increase the competitiveness of the EU two-wheeler industry, thus creating high-quality jobs and allowing clusters for the bicycle industry to emerge.

The Transport Committee also calls for e-bikes that travel at speeds of up to 25 km/h to be given an independent legal classification both in EU law and in the legislation of the member states. Member states should make use of the possibility to apply the reduced VAT rate to accessories, rental and repair of bikes and e-bikes. The Commission should declare 2024 as the European Year of Cycling, she said. Anna Deparnay-Grunenberg (Greens), member of the Transport Committee, said, “With the EU Cycling Resolution, cycling is finally being considered as part of the mobility transition.” It is high time for a safe cycling infrastructure, she said, which requires European coordination and more investment. mgr

Study: ETS is vulnerable to money laundering

According to a new study by the German Environmental Protection Agency, the European Emissions Trading System (ETS) is particularly vulnerable to money laundering. The reasons for this are the lack of transparency regulations for market participants and the large proportion of over-the-counter (OTC) trading in the ETS.

Due to the rising CO2 prices, the attractiveness of the market for criminal activities is also increasing. In addition, there is a lack of “awareness” of money laundering among market participants and compliance within companies, so the risk of money laundering in the ETS is likely to increase further, writes study author Kai Bussmann of Martin Luther University Halle-Wittenberg.

For the investigation, Bussmann surveyed companies from the countries participating in the ETS. In the process, he arrived at an extrapolated figure of around 3,300 transactions within two years “that give rise to a suspicion of money laundering.” In about half of these suspicious transactions, there may have been an attempt to conceal the true identity of the buyer, Bussmann writes. However, he expects the number of unreported cases to be significantly higher.

Suspicious cash payments

Other conspicuous features of transactions consist of unclear business motives on the part of buyers of CO2 certificates, limited contact options for buyers, and the preferred method of payment in cash.

Bussmann, therefore, recommends the use of software-based analysis tools in the Union Registry, where ETS market participants deposit their transactions. This should make conspicuous transaction patterns easier to identify and open up the possibility of submitting suspicious transaction reports. It also calls for the introduction of a transaction limit for cash payments. luk

Court of Auditors examines use of cohesion policy as crisis instrument

Repeated use of cohesion policy to address crises could dilute the goal of reducing development disparities between regions. That is the finding of a new special report by the European Court of Auditors. It examined how the Commission adapted rules to give member states greater flexibility in using cohesion policy funds for the 2014-2020 period to deal with the Covid pandemic.

The EU quickly adjusted its rules to allow member states greater flexibility in the use of cohesion funds to address the Covid pandemic. According to the Court, the adjustments provided liquidity, flexibility, and simplification, and allowed for the movement of significant funds. As a result, no less than €35 billion had been redeployed by Dec. 31, 2021, mainly to health care and business support, it said. A further €50.4 billion had been made available through the REACT EU instrument for short- and medium-term crisis management, half of it for Spain and Italy alone.

At the same time, however, this has increased the pressure to spend EU funds quickly (by the end of 2023). This threatens to compromise the efficient use of funds. As a result, the cohesion programs for the period 2021 to 2027 were launched only after a considerable delay. 25 percent of the REACT-EU funds were also supposed to go to climate protection. According to the auditors, this target is unlikely to be achieved.

Cohesion policy: the right Instrument?

“EU action facilitated the use of cohesion funds to help member states deal with the economic hardship triggered by Covid,” said Iliana Ivanova, the European Court of Auditors member responsible for the audit. However, she said this inevitably increased the risk that already existing challenges would worsen. “More fundamentally, we still need to look very carefully at whether EU cohesion policy is the right budgetary instrument for responding to crises.”

Cohesion policy has already been used frequently to respond to crises in the short term, she stated, and some of the changes introduced to that end have become permanent fixtures. However, the long-term impact of this practice has not yet been formally assessed, the auditors said. The new, much more flexible rules for cohesion policy for the period 2021 to 2027 could make it easier to use grant money to deal with unexpected events.

The bottom line, according to the auditors, is that there is a risk that the regular recourse to cohesion policy to deal with crises will cause the primary strategic objective of this policy area – the reduction of disparities between European regions – to be lost from view.

Cohesion policy is one of the largest policies in the EU budget, with a budget of €355 billion for the period 2014 to 2020. Its main objective is to strengthen economic, social and territorial cohesion between regions. leo

NRW distances itself from EU pesticide regulation

The state government of North Rhine-Westphalia has reservations about the EU Commission’s proposal to drastically reduce the use of plant protection products. The black-green government’s assessment of the Commission’s work program, which is available to Europe.Table and will be published today, says: “In the proposal for the Plant Protection Products Regulation, which envisages a Europe-wide reduction in the use of plant protection products by 50 percent by 2030, care must be taken to ensure that dependencies in the area of food supply are not increased.” The state government demands: The proposal’s list of “ecologically sensitive areas” should be reviewed and the prohibitions revised, taking into account the respective protection goals.

The paper goes on to say that the state government will critically monitor the Commission’s revision of the REACH Chemicals Regulation. The reorientation of chemicals policy in the context of the Green Deal could make an important contribution to a sustainable circular economy. However, it is also true that the expected proposals would entail a “considerable need for adjustment” in the chemical industry. It is important for NRW as a chemical location that the planned modernization of chemicals legislation is combined with long-term planning and investment security.

In view of the upcoming mid-term review of the EU’s Multiannual Financial Framework (MFF), the state is demanding that economically and financially strong regions such as North Rhine-Westphalia also receive funding from the EU budget to meet the challenges of the green and digital transformation. The state government is also calling for the EU budget to become more flexible so that the EU can respond more quickly to crises. mgr

What’s cooking in Brussels?

By Claire Stam

The question of how to define green hydrogen will be at the forefront of the trilogue on the Renewable Energy Directive (RED 3) on Feb. 7. Markus Pieper (CDU), rapporteur for the revision of the RED Directive, accuses the European Commission of waiting too long to present the two delegated acts that will define renewable fuels from non-biological sources – including green hydrogen. The MEP proposed to his negotiating team to define these criteria directly in the trilogue if they were not presented by Feb. 7. “The Swedish presidency agrees,” he said.

As an hors d’œuvre, a brief review: The European Union has made hydrogen development a priority. The REPowerEU plan set ambitious targets for 2030. An important exception in state aid law: The hydrogen economy was recognized as a so-called Important Project of Common European Interest (IPCEI). The first two funding rounds (the technology wave and the industrial wave) account for €10.6 billion in state aid approvals by the Commission. In addition, it was decided to create a hydrogen bank, with a budget of €3 billion.

At the normative level, the EU is now taking action through RED 3 and the gas market package. The RED 3 draft gives hydrogen an important boost by setting ambitious targets – at least according to the Commission’s proposal – for renewable hydrogen produced by electrolysis by 2030 and 2035 in industry.

Is ‘violet’ hydrogen green?

One of the most important issues in this reform: the type of primary energy that will be used to achieve these goals. Should nuclear-generated hydrogen be included in the chosen targets? Or, to put it another way, can it fall under the definition of green hydrogen? EU member states are divided on the issue.

For Jutta Paulus (Greens/EFA), shadow rapporteur in the Industry Committee (ITRE), the Transport Committee (TRAN) and the Environment Committee (ENVI), the matter is clear: if at all, only hydrogen from renewable energies should be mentioned in the Renewable Energies Directive. In view of the current difficulties surrounding reactors in France, and the resulting problems with electricity production, “the debate (about nuclear energy and hydrogen) is quite absurd,” the MEP finds.

Emmanuel Macron has indeed announced plans to have new reactors built in France, Paul reminds us. But this would take twenty, thirty years. “I think behind this is that France wants to get its hands on public money. This can be explained by the significant capital costs required,” she says.

Germany and France converge

France and seven other (Central and Eastern European) member states are currently pushing for nuclear-generated hydrogen to be included in the targets. This position was supported by the Czech presidency of the EU Council, which ended last Dec. 31. It is also supported by an industry coalition of France Hydrogène and other European hydrogen-related players.

Several member states oppose it. Germany initially aligned itself with the French position through the Nov. 25 Energy Solidarity Agreement, but then changed its position and opposed the French demand in December. The Franco-German declaration of Jan. 22 blurred the fronts again. It said, “We will (…) ensure that both renewable and low-carbon hydrogen can be taken into account in European decarbonization targets while recognizing their differences and maintaining the overall level of ambition of renewable energy targets.”

On their joint trip to Washington, D.C. next week, French Minister of the Economy and Finance Bruno Le Maire and German Minister for Economic Affairs Robert Habeck may further appease their differences. The US Inflation Reduction Act also takes green hydrogen into account. Meanwhile, in Brussels, negotiations on the Renewable Energy Directive will slowly approach dessert. Next Tuesday’s trilogue, however, will be followed by at least two more in March.

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

This news will especially please Luxembourg’s Foreign Minister Jean Asselborn, whose passion for road cycling was the subject of a tragicomedy by Charlotte Wirth, written for Europe.Table a few weeks ago: The EU Parliament’s Transport Committee (TRAN) is calling on the EU Commission to present a cycling strategy – with the aim of doubling the number of kilometers cycled in the EU by 2030. Read more about this in our News today.

The EU-Ukraine summit has begun in Kyiv. While Ukraine is insisting on rapid EU accession, the EU countries are still waiting for a report from the EU Commission on Ukraine’s reform progress in the summer, reports Eric Bonse. Only then will they decide whether to officially open accession negotiations. Meanwhile, in Brussels: Negotiations on the tenth sanctions package against Russia are stalling.

In her column today, my colleague Claire Stam turns her attention to molecular cuisine: The question of whether hydrogen produced with nuclear power can be defined as green is dividing EU member states. Next Tuesday, this will be at the forefront of the trilogue on the Renewable Energy Directive (RED 3). The rapporteur in the Parliament, Markus Pieper (EPP), thinks the Commission is too slow: If it does not present criteria for renewable fuels of non-biological origin by Tuesday, he wants to define them directly in the trilogue.

Your
Leonie Düngefeld

Ukraine: no rapid EU accession, but further support

By

Eric Bonse

Commission President Ursula von der Leyen announced on Thursday in Kyiv, among other things, the now tenth sanctions package and an “international center for the prosecution of the crime of aggression in Ukraine” to be established in The Hague. She did not yet give details at the EU-Ukraine summit; they are to be worked out later.

The Commission’s visit to Kyiv had mainly symbolic value. Shortly before the anniversary of the Russian invasion on Feb. 24, the EU authority wanted to underline its solidarity. Von der Leyen spoke of a clear signal. “Ukraine has become the center of our continent. The place where our values are upheld, where our freedom is defended and where the future of Europe is written.”

Further financial aid for Kyiv

EU High Representative for Foreign Affairs Josep Borrell announced an expansion of the EU Military Assistance Mission Ukraine (EUMAM) military training mission. EUMAM will train an additional 15,000 Ukrainian soldiers, bringing the total number to 30,000, the Spaniard said after talks with Ukrainian Prime Minister Denys Shmyhal. Experts from the armed forces of EU member states also want to train main battle tank crews in the future. The Leopard 2, which Germany and Poland, among others, plan to supply, is to be used as quickly and efficiently as possible.

The EU Commission also announced further financial and humanitarian aid. For example, around €150 million will be provided for the reconstruction of the energy infrastructure destroyed by Russia. In addition, the EU will provide another 2,400 power generators – on top of the 3,000 that have been delivered since the beginning of the war. Since the beginning of the war, the EU has supported Ukraine with €50 billion, von der Leyen stressed.

EU-Ukraine summit on Friday

The Commission’s informal meeting with President Volodymyr Zelenskiy and the Ukrainian government will be followed today, Friday, by the 24th EU-Ukraine Summit, which Council President Charles Michel will also attend in Kyiv. The heads of state and government of the 27 member states are not represented at this summit. However, they were involved in the preparations through their permanent representatives in Brussels. No major decisions are planned.

The draft summit declaration, available to Europe.Table, condemns Russia’s “unprovoked and unjustified war of aggression.” The EU promises to support Ukraine in this war “for as long as necessary.”

The passages on EU accession turn out to be disappointing for Ukraine. Head of government Denys Shmyhal had announced that his country wanted to join within two years. However, the summit draft does not contain a deadline. Instead, the text refers to the progress report that the EU Commission intends to present in the fall. It also calls for the “full and consistent implementation of the judicial reforms” that Kyiv had promised in 2022.

In order for accession negotiations to take place, all 27 EU member states must give the green light. However, in view of the escalating war and the numerous corruption scandals that have just been uncovered, no quick decision is in sight in Brussels. As a “consolation band-aid,” the EU Commission has announced closer cooperation on European programs – but below the threshold of real membership.

Dispute over sanctions in Brussels

The summit draft also contains a commitment to further sanctions against Russia. However, talks on punitive measures in the Permanent Representatives Committee (Coreper) were suspended in Brussels on Thursday – the differences were too great. Under discussion is a review of the oil price cap imposed in December, a price limit for diesel and other refined products, and a tightening of sanctions against Belarus. In the case of the latter, the main issue is whether sanctions against Belarus should be harmonized with those against Russia in order to also build up pressure on Moscow via Minsk.

Regarding the oil price cap, the EU Commission has proposed to set price ceilings for Russian oil products such as diesel as of Feb. 5. They are to be set at $100 per barrel (159 liters) for Russian diesel and $45 per barrel for heating oil from Russia. For some countries, this goes too far; for others, not far enough. The consultations are to continue over the weekend.

It is unclear whether the deadline for an agreement in Coreper on Sunday can be met. There is also dispute over the tenth package of sanctions to be imposed before the anniversary of the Russian invasion on Feb. 24. Ukraine is calling for penalties to be imposed on trade in Russian diamonds (article only available in German) as well as the Russian nuclear industry. However, Belgium is putting the brakes on diamonds, and several EU states have concerns about Rosatom. Here, too, things are getting tight.

EU Parliament lifts immunity of Cozzolino and Tarabella

Following the corruption affair involving former EU Parliament Vice President Eva Kaili, the EU Parliament has now lifted the immunity of two MEPs, Andrea Cozzolino from Italy and Marc Tarabella from Belgium. Both belonged to the Socialist Group until recently but are now considered non-attached.

Belgian investigators had requested to question them in connection with the corruption affair and influence peddling by Qatar and Morocco. Both, through their lawyers, denied wrongdoing and agreed to respond to questions from Belgian authorities. Tarabella even personally gave his consent in plenary for the waiver of immunity.

Money for foreign advocacy

Cozzolino is accused of being paid in 2019 to advocate in Parliament for the interests of other states and against decisions that could harm those states. Tarabella is suspected of having supported certain positions in favor of a third country in exchange for cash payments over the past two years. According to witnesses, he allegedly received payments totaling €120,000 to €140,000 on several occasions for this purpose.

Greek Eva Kaili and former Italian MP Pier Antonio Panzeri have already been in Belgian custody since December, along with two others. They are charged with corruption and money laundering in connection with alleged payments from Qatar and Morocco.

Kaili’s partner Francesco Giorgi, who is also in custody, confessed to taking bribes and said he suspected Tarabella of receiving money from Qatar, according to a source familiar with the investigation. Giorgi’s lawyer declined to comment. luk/rtr

Habeck: tax breaks would be a strong EU response to IRA

German Minister for Economic Affairs Robert Habeck has floated tax breaks for investments as an EU response to the US Inflation Reduction Act (IRA). “This is a very interesting proposal from the EU Commission,” he said Thursday at the start of his two-day stay in Stockholm after meetings with his Swedish counterpart Ebba Busch and Trade Minister Johan Forssell. “It seems to be the outline of a very strong European response to the IRA.”

Up to now, one would have to apply for every subsidy in the EU with many forms and files. This costs a lot of time, the way via write-offs would be much faster, he said. “We should continue to work on this proposal.” In principle, subsidies should only be granted in exceptional cases for new technology. But since Europe is in danger of falling behind in key fields, he said, it is now necessary to do the pragmatic thing. He also made it clear that subsidies should be spread more widely in order to reduce technological dependence on Asia, for example. In addition to the production of semiconductors and solar modules, Habeck also mentioned battery production.

‘Building green bridges across the Atlantic’

Swedish Minister Busch called the IRA a threat to competition but argued against a subsidy race. “There is a way for a smart and common response to the IRA,” she said. Sweden currently holds the EU Council presidency and wants to coordinate member states’ response to the US program. On Wednesday, the EU Commission presented its plans and also mentioned the option of tax breaks.

“I think we have a good chance to avoid a trade dispute, some say trade war,” Habeck said. The US and the EU would have to work together. “Actually, we should manage to build a green bridge across the Atlantic, especially in the industrial sector.” Cooperation in a US-EU trade and technology council could be the “nucleus” of some kind of joint industrial agreement, he stated. Next week, Habeck will travel to Washington, D.C. with French Economy and Finance Minister Bruno Le Maire to present the EU’s position on the IRA to the US government.

Habeck also wants to campaign in Sweden for the Swedish battery manufacturer Northvolt to build a factory in Schleswig-Holstein. Today, Friday, he wants to visit an R&D laboratory of the company and also meet Northvolt CEO Peter Carlsson there. Northvolt had signaled that construction of the factory could be delayed. The company cited local electricity prices and higher subsidies in the US as reasons. rtr/dpa/leo

EU Parliament votes for stricter rules on political advertising

Elections and referendums in the EU are to become more transparent in the future and outside influence more difficult. On Thursday, the EU Parliament adopted its report for stricter rules on political advertising with a clear majority of 433 votes in favor to 61 against, with 110 abstentions.

Accordingly, only personal data from advertising providers that has been explicitly made available for online political advertising may now be used. This is intended to prevent so-called micro-targeting, in which consumer data and demographic data are used to create personality profiles of Internet users. The Commission’s proposal lacked this restriction. According to the report, fines can be imposed in the event of violations.

Preventing influence from outside

In addition, MEPs voted to prohibit entities based outside the EU from funding political advertising in the EU. To facilitate access to information on political advertising for EU citizens, authorities and journalists, an online register is also to be set up. The register will show who finances advertising, how much it costs and where the money comes from.

With the adoption of the report, negotiations with the Council can begin. The Council adopted its position in December. The new regulations are to be adopted and enter into force in time for the 2024 European elections. luk

Commission to develop cycling strategy

The European Parliament’s Transport Committee (TRAN) calls on the Commission to present a cycling strategy. It should pursue the goal of doubling the number of kilometers cycled in the EU by 2030. The resolution, which was adopted by the Committee, also calls for manufacturers and the supply industry around bicycles, as well as e-bikes and batteries, to be recognized as legitimate partners in the mobility part of the EU industrial strategy. The Commission and member states should strive to establish the “Made in Europe” brand for bikes and accessories. This would increase the competitiveness of the EU two-wheeler industry, thus creating high-quality jobs and allowing clusters for the bicycle industry to emerge.

The Transport Committee also calls for e-bikes that travel at speeds of up to 25 km/h to be given an independent legal classification both in EU law and in the legislation of the member states. Member states should make use of the possibility to apply the reduced VAT rate to accessories, rental and repair of bikes and e-bikes. The Commission should declare 2024 as the European Year of Cycling, she said. Anna Deparnay-Grunenberg (Greens), member of the Transport Committee, said, “With the EU Cycling Resolution, cycling is finally being considered as part of the mobility transition.” It is high time for a safe cycling infrastructure, she said, which requires European coordination and more investment. mgr

Study: ETS is vulnerable to money laundering

According to a new study by the German Environmental Protection Agency, the European Emissions Trading System (ETS) is particularly vulnerable to money laundering. The reasons for this are the lack of transparency regulations for market participants and the large proportion of over-the-counter (OTC) trading in the ETS.

Due to the rising CO2 prices, the attractiveness of the market for criminal activities is also increasing. In addition, there is a lack of “awareness” of money laundering among market participants and compliance within companies, so the risk of money laundering in the ETS is likely to increase further, writes study author Kai Bussmann of Martin Luther University Halle-Wittenberg.

For the investigation, Bussmann surveyed companies from the countries participating in the ETS. In the process, he arrived at an extrapolated figure of around 3,300 transactions within two years “that give rise to a suspicion of money laundering.” In about half of these suspicious transactions, there may have been an attempt to conceal the true identity of the buyer, Bussmann writes. However, he expects the number of unreported cases to be significantly higher.

Suspicious cash payments

Other conspicuous features of transactions consist of unclear business motives on the part of buyers of CO2 certificates, limited contact options for buyers, and the preferred method of payment in cash.

Bussmann, therefore, recommends the use of software-based analysis tools in the Union Registry, where ETS market participants deposit their transactions. This should make conspicuous transaction patterns easier to identify and open up the possibility of submitting suspicious transaction reports. It also calls for the introduction of a transaction limit for cash payments. luk

Court of Auditors examines use of cohesion policy as crisis instrument

Repeated use of cohesion policy to address crises could dilute the goal of reducing development disparities between regions. That is the finding of a new special report by the European Court of Auditors. It examined how the Commission adapted rules to give member states greater flexibility in using cohesion policy funds for the 2014-2020 period to deal with the Covid pandemic.

The EU quickly adjusted its rules to allow member states greater flexibility in the use of cohesion funds to address the Covid pandemic. According to the Court, the adjustments provided liquidity, flexibility, and simplification, and allowed for the movement of significant funds. As a result, no less than €35 billion had been redeployed by Dec. 31, 2021, mainly to health care and business support, it said. A further €50.4 billion had been made available through the REACT EU instrument for short- and medium-term crisis management, half of it for Spain and Italy alone.

At the same time, however, this has increased the pressure to spend EU funds quickly (by the end of 2023). This threatens to compromise the efficient use of funds. As a result, the cohesion programs for the period 2021 to 2027 were launched only after a considerable delay. 25 percent of the REACT-EU funds were also supposed to go to climate protection. According to the auditors, this target is unlikely to be achieved.

Cohesion policy: the right Instrument?

“EU action facilitated the use of cohesion funds to help member states deal with the economic hardship triggered by Covid,” said Iliana Ivanova, the European Court of Auditors member responsible for the audit. However, she said this inevitably increased the risk that already existing challenges would worsen. “More fundamentally, we still need to look very carefully at whether EU cohesion policy is the right budgetary instrument for responding to crises.”

Cohesion policy has already been used frequently to respond to crises in the short term, she stated, and some of the changes introduced to that end have become permanent fixtures. However, the long-term impact of this practice has not yet been formally assessed, the auditors said. The new, much more flexible rules for cohesion policy for the period 2021 to 2027 could make it easier to use grant money to deal with unexpected events.

The bottom line, according to the auditors, is that there is a risk that the regular recourse to cohesion policy to deal with crises will cause the primary strategic objective of this policy area – the reduction of disparities between European regions – to be lost from view.

Cohesion policy is one of the largest policies in the EU budget, with a budget of €355 billion for the period 2014 to 2020. Its main objective is to strengthen economic, social and territorial cohesion between regions. leo

NRW distances itself from EU pesticide regulation

The state government of North Rhine-Westphalia has reservations about the EU Commission’s proposal to drastically reduce the use of plant protection products. The black-green government’s assessment of the Commission’s work program, which is available to Europe.Table and will be published today, says: “In the proposal for the Plant Protection Products Regulation, which envisages a Europe-wide reduction in the use of plant protection products by 50 percent by 2030, care must be taken to ensure that dependencies in the area of food supply are not increased.” The state government demands: The proposal’s list of “ecologically sensitive areas” should be reviewed and the prohibitions revised, taking into account the respective protection goals.

The paper goes on to say that the state government will critically monitor the Commission’s revision of the REACH Chemicals Regulation. The reorientation of chemicals policy in the context of the Green Deal could make an important contribution to a sustainable circular economy. However, it is also true that the expected proposals would entail a “considerable need for adjustment” in the chemical industry. It is important for NRW as a chemical location that the planned modernization of chemicals legislation is combined with long-term planning and investment security.

In view of the upcoming mid-term review of the EU’s Multiannual Financial Framework (MFF), the state is demanding that economically and financially strong regions such as North Rhine-Westphalia also receive funding from the EU budget to meet the challenges of the green and digital transformation. The state government is also calling for the EU budget to become more flexible so that the EU can respond more quickly to crises. mgr

What’s cooking in Brussels?

By Claire Stam

The question of how to define green hydrogen will be at the forefront of the trilogue on the Renewable Energy Directive (RED 3) on Feb. 7. Markus Pieper (CDU), rapporteur for the revision of the RED Directive, accuses the European Commission of waiting too long to present the two delegated acts that will define renewable fuels from non-biological sources – including green hydrogen. The MEP proposed to his negotiating team to define these criteria directly in the trilogue if they were not presented by Feb. 7. “The Swedish presidency agrees,” he said.

As an hors d’œuvre, a brief review: The European Union has made hydrogen development a priority. The REPowerEU plan set ambitious targets for 2030. An important exception in state aid law: The hydrogen economy was recognized as a so-called Important Project of Common European Interest (IPCEI). The first two funding rounds (the technology wave and the industrial wave) account for €10.6 billion in state aid approvals by the Commission. In addition, it was decided to create a hydrogen bank, with a budget of €3 billion.

At the normative level, the EU is now taking action through RED 3 and the gas market package. The RED 3 draft gives hydrogen an important boost by setting ambitious targets – at least according to the Commission’s proposal – for renewable hydrogen produced by electrolysis by 2030 and 2035 in industry.

Is ‘violet’ hydrogen green?

One of the most important issues in this reform: the type of primary energy that will be used to achieve these goals. Should nuclear-generated hydrogen be included in the chosen targets? Or, to put it another way, can it fall under the definition of green hydrogen? EU member states are divided on the issue.

For Jutta Paulus (Greens/EFA), shadow rapporteur in the Industry Committee (ITRE), the Transport Committee (TRAN) and the Environment Committee (ENVI), the matter is clear: if at all, only hydrogen from renewable energies should be mentioned in the Renewable Energies Directive. In view of the current difficulties surrounding reactors in France, and the resulting problems with electricity production, “the debate (about nuclear energy and hydrogen) is quite absurd,” the MEP finds.

Emmanuel Macron has indeed announced plans to have new reactors built in France, Paul reminds us. But this would take twenty, thirty years. “I think behind this is that France wants to get its hands on public money. This can be explained by the significant capital costs required,” she says.

Germany and France converge

France and seven other (Central and Eastern European) member states are currently pushing for nuclear-generated hydrogen to be included in the targets. This position was supported by the Czech presidency of the EU Council, which ended last Dec. 31. It is also supported by an industry coalition of France Hydrogène and other European hydrogen-related players.

Several member states oppose it. Germany initially aligned itself with the French position through the Nov. 25 Energy Solidarity Agreement, but then changed its position and opposed the French demand in December. The Franco-German declaration of Jan. 22 blurred the fronts again. It said, “We will (…) ensure that both renewable and low-carbon hydrogen can be taken into account in European decarbonization targets while recognizing their differences and maintaining the overall level of ambition of renewable energy targets.”

On their joint trip to Washington, D.C. next week, French Minister of the Economy and Finance Bruno Le Maire and German Minister for Economic Affairs Robert Habeck may further appease their differences. The US Inflation Reduction Act also takes green hydrogen into account. Meanwhile, in Brussels, negotiations on the Renewable Energy Directive will slowly approach dessert. Next Tuesday’s trilogue, however, will be followed by at least two more in March.