Table.Briefing: Europe (English)

Von der Leyen’s second term + Call for EU security summit + DSA proceedings against Tiktok

Dear reader,

Yesterday, the CDU Executive Committee unanimously nominated Commission President Ursula von der Leyen as the lead candidate of the Christian Democratic Party family EPP in the European elections. In the election campaign, von der Leyen wants to score points with her plan to strengthen the competitiveness of European companies. She also reiterated her proposal to appoint a separate Commissioner for Defense. Given the threat posed to Europe by Russia, she said it was necessary to better organize the Community’s defense industry. Markus Grabitz has the details.

Marie-Agnes Strack-Zimmermann also believes that the Commission must expand European cooperation in security policy. However, the Chairwoman of the Defense Committee in the Bundestag criticized von der Leyen. She should have prioritized security much earlier and thus made better use of the time without Trump in the White House, Strack-Zimmermann said at a Table.Media event. She called for an EU security summit to send a clear signal to the member states. Read Till Hoppe’s Analysis to find out what else she hopes to gain from the Weimar Triangle.

TikTok is particularly popular with younger people. However, the platform not only provides entertaining dance trends, it has also been criticized for some time due to potential risks for users. TikTok is now facing proceedings by the EU Commission under the Digital Services Act. Read more in the News.

We wish you a successful day.

Your
Sarah Schaefer
Image of Sarah  Schaefer

Feature

Von der Leyen wants to score points in the election campaign with more competitiveness

The CDU Executive Committee has unanimously nominated Commission President Ursula von der Leyen as the lead candidate of the Christian Democratic Party family EPP in the European elections. In the event of her re-election, her central project will be to strengthen the competitiveness of companies in Europe. Von der Leyen also insists on her proposal to appoint a separate Commissioner for Defense. “There is already a Commissioner for the internal market and industrial policy who is also responsible for defense”, said the 65-year-old.

Given the threat posed to Europe by Russia, it was necessary to better organize the Community’s defense industry in the future. However, she did not want to dispute the member states’ competences. “The member states are responsible for organizing their armed forces.” She does not want to change this. The future Commissioner for Defence would, for example, be responsible for organizing the common defense fund of the member states.

Elected as EPP lead candidate in Bucharest in March

Von der Leyen is to be elected as the lead candidate of the European Christian Democrat party family at the EPP Congress in Bucharest on March 6-7. The prerequisite for this is that she is nominated by two other EPP member parties. The deadline is Feb. 21. The nomination of the other two EPP parties is considered a formality. Von der Leyen is not standing as a candidate for the European Parliament, for which she has been sharply criticized by Green MEPs. It is irritating that von der Leyen will not appear anywhere on the ballot paper, said Rasmus Andresen, spokesperson for the German Green delegation in the European Parliament.

Von der Leyen’s plans focus on strengthening the competitiveness of European companies. “We must adapt the competitiveness of industry to the new conditions.” With the funds from the NextGenerationEU recovery fund, it was possible to avert a recession in the EU economy after the pandemic and to realign the EU economy to the necessary restructuring as part of the Green Deal.

When it comes to reducing bureaucracy and strengthening competitiveness, she is looking forward to working with the Commission’s designated SME Envoy, Markus Pieper (CDU). She stands by the Commission’s promise to reduce reporting obligations for companies by 25 percent and to subject new legislative proposals to a review to determine whether they impair the competitiveness of companies.

Her willingness to run for the office of Commission President for a second time is also driven by her concern for democracy: “I want to defend the success of the EU against divisions from within and without.”

End of combustion engine is a sore point

CDU party leader Friedrich Merz said after the nomination: “Ursula von der Leyen’s candidacy is linked to two messages.” On the one hand, she stands for the promise to “give people security in a comprehensive sense“. The second is that “the EU must secure prosperity”. The CDU and CSU will run for the European elections with a joint party program. The program commission is to hold its final meeting today, Tuesday, and the program is to be adopted on March 11 in a joint presidium meeting of the two sister parties.

However, one point of contention is emerging between the lead candidate and the two sister parties. The CDU and CSU will go into the European elections with the demand to reverse the EU’s decision to ban combustion engines in new cars from 2035. According to information from Table.Media, von der Leyen initially stated at the CDU presidium meeting on the eve of the nomination that the EU had not decided on a total ban on combustion engines. When there were objections from participants, it was said that the Commission had already submitted a proposal to avert the ban on combustion engines.

The fact is, however, that the decision was made to end the registration of vehicles with combustion engines in 2035. In addition, there is no EU decision on the registration of cars powered exclusively by climate-neutral fuels from 2035. The legal text merely states that the EU’s CO2 fleet legislation will be reviewed by the Commission in 2026. This would be an opportunity to revise the ban on combustion engines. The CDU and CSU are therefore eagerly awaiting to see how von der Leyen, as the lead candidate in the election campaign, will deal with the central demand of the parties nominating her.

SPD and Greens call for clear demarcation from right-wing populists

The lead candidates of the SPD and Greens are calling on the Christian Democratic party family to clearly reject cooperation with right-wing populist parties in the next European Parliament. The Green Party’s Terry Reintke, who is also the lead candidate of her party family at EU level, asks the following question concerning von der Leyen and the EPP: “Will they work together with authoritarian and far-right forces that want to scrap climate protection, social security, and democracy?” Or: “Will they work with pro-European forces to build a secure, sustainable, and democratic future?”

Katarina Barley, who heads the list of German Social Democrats, said: “While the Union in Germany rules out any cooperation with the AfD, it is keeping the option open in the European Parliament to enter into strategic alliances with the right-wing populists and extremists.” This is often precisely against von der Leyen’s plans. “This even includes von der Leyen’s prestigious Green Deal project.” With dpa

  • Europawahlen 2024
  • European election 2024
  • EVP
  • NextGenerationEU
  • Ursula von der Leyen

Strack-Zimmermann calls for security summit

Marie-Agnes Strack-Zimmermann, Chair of the Bundestag’s Defense Committee, is calling for a European security conference at the highest political level given the threat posed by Russia. The EU heads of state and government should discuss the pressing issues of European security and defense policy in order to send a “clear commitment to their countries”, she said on Monday at an event organized by Table.Media and the European Movement Germany. “We now have a historic responsibility and we will have to justify to ourselves one day whether we have heard the gong, whether we are ready to really commit.”

The FDP lead candidate for the European elections believes that the Weimar Triangle of Germany, France and Poland has a particular responsibility in this regard. “Someone has to get on the engine of this train and get going”, she said. Then the other European states would follow suit. Europeans have been discussing taking more responsibility for their own security for a long time, but too little has happened so far.

Jana Puglierin, Senior Policy Fellow at the European Council on Foreign Relations, believes Berlin has a duty: “It is absolutely imperative that the German government does everything it can to make cooperation with Poland work,” she said. Franco-German cooperation in defense is often difficult, and Polish Prime Minister Donald Tusk can mediate here. “This three-way constellation is good for everyone involved.”

‘Von der Leyen did not use Trump-free time’

At the Munich Security Conference this weekend, Chancellor Olaf Scholz once again called on the other EU states to provide Ukraine with more weapons and to do more for common security in Europe. Scholz has found allies here in the Baltic and Scandinavian states, says Puglierin. These countries, which traditionally rely heavily on the USA as a security guarantor, are prepared to expand European cooperation.

Strack-Zimmermann also sees the EU Commission as having a duty. Commission President Ursula von der Leyen announced on Monday that she would be running for a second term in office and that she wanted to make security policy one of her priorities. Strack-Zimmermann criticized, however, that the CDU politician “did not take up the issue much earlier and did not use this Trump-free time”. It was obvious that von der Leyen was “acting based on logic: now you can talk about it without doing any harm”. Previously, she had preferred not to talk about weapons and had already avoided being photographed in front of armed fighter jets as Federal Minister of Defense.

Scholz takes a skeptical view of the Defense Commissioner

The FDP politician assumes that the Commission President will ultimately leave the issue to others. Von der Leyen has already announced that in a possible second term of office, she will create the remit of a Defense Commissioner.

In Berlin, however, the proposal has met with skepticism for the time being, as defense policy is the sovereignty of the member states. “We would first have to consider what the point of such a commissioner post would be,” said government spokesperson Steffen Hebestreit. From Chancellor Scholz’s point of view, the first step would be for the EU defense ministers to have their own regular council.

New program for the arms industry

Von der Leyen, however, has in mind that a Defense Commissioner should primarily take care of the interests of the arms industry. According to the EU treaties, the Commission has a say here.

The Commission is expected to present a new strategy for the defense industry (European Defence Industrial Strategy – EDIS) and a procurement program, the European Defence Investment Programme (EDIP), on March 5. The aim is to encourage Member States to order more military equipment jointly and also from European manufacturers. The authority is concerned that many armaments orders go to foreign manufacturers, for example from the USA or Israel.

Von der Leyen therefore wants to create financial incentives: If several defense ministries join forces, they should receive a grant from the EU budget. The funds for this could come from the European Defense Fund, which was allocated an extra €1.5 billion until 2027 in the latest budget negotiations. The European Peace Facility could also be tapped into for this purpose. This has so far been used to compensate EU states for arms deliveries to Ukraine.

‘Industry must also take risks’

In addition, von der Leyen has announced that she wants to give manufacturers planning security for investments through purchase guarantees. This should help companies to expand their production capacities in Europe. Strack-Zimmermann believes this is the right approach: manufacturers need reliable orders. But the industry cannot demand 20-year plans. “Of course, I expect an industry that earns real money to take risks.”

ECFR expert Jana Puglierin is in favor of consolidation in the industry to bundle forces. However, as many companies are state-owned, they cannot be left to market forces. “The member states must be on board and be prepared to do so.” One prerequisite would also be to harmonize the different strict arms export guidelines of the member states to a greater extent.

More money, but no new debt

Puglierin is also calling for more EU funds to be mobilized for the defense industry, at least in the new financial period from 2028. However, Strack-Zimmermann refused to talk about new debt-financed EU pots at this stage, as suggested by Estonian Prime Minister Kaja Kallas and French President Emmanuel Macron.

The FDP politician said that a needs analysis was needed first. “And then we look at the price and then we have to discuss whether this can be taken from the current budget, possibly at the expense of other wishes. Or do we have to make other proposals?” Making new pots of debt available straight away would run the risk of the money being wasted.

  • Defense Policy
  • EU
  • European Defense
  • Geopolitics
  • Security policy

Events

Feb. 21-22, 2024; London (United Kingdom)
Envision, Conference Energy Storage Summit 2024
Leading industry figures across Europe will come together to explore how energy storage can reach its full potential and will discuss recent challenges and opportunities. INFO & REGISTRATION

Feb. 21-22, 2024; Brussels (Belgium)
ETUI, Conference Future of work: rethinking workers’ rights in the digital age
The European Trade Union Institute (ETUI) aims to explore the main transformative implications of digital technology for working conditions and labor rights, discuss normative options, and formulate constructive proposals for legislators with scholars from multiple disciplines. INFO & REGISTRATION

Feb. 21, 2024; Brussels (Belgium)
EUI, Conference Moving forward together: what’s next for EU mobility & transport?
The European University Institute (EUI), in cooperation with the European Commission, organizes an academic conference on the state of play on EU transport policy and the challenges and priorities for the future of EU transport and mobility. INFO & REGISTRATION

Feb. 21, 2024; 8:30-9 a.m., Berlin (Germany)/online
Hertie School, Presentation EU to go – European election year 2024: What to expect?
This event will provide an outlook on the European election year 2024. INFO & REGISTRATION

Feb. 21, 2024; 9 a.m.-6:30 p.m., Brussels (Belgium)
Digital Europe, Conference Masters of Digital 2024
Policymakers, industry leaders, and experts will have a platform to discuss the course for Europe’s digital transformation, delving into the impact of AI and emerging technologies on Europe’s economy, society, and sustainability. INFO & REGISTRATION

Feb. 21, 2024; 10-11:15 a.m., online
TÜV, Seminar Armed for NIS-2: What the directive means and how you can protect yourself against cyber threats
The seminar provides an introduction to the NIS 2 Directive to strengthen cyber security in the European Union and answers questions on the implementation obligation for companies. INFO & REGISTRATION

Feb. 21, 2024; 3-4:30 p.m., online
ERCST, Roundtable ETS review of Carbon Leakage Risks for CBAM Export Goods
The European Roundtable on Climate Change and Sustainable Transition (ERCST) will invite a group of stakeholders to discuss questions concerning the implementation of CBAM legislation, focusing on the carbon leakage risk for goods subject to CBAM and produced in the EU for export. INFO & REGISTRATION

Feb. 21, 2024; 4-6 p.m., Berlin (Germany)
EK, Q&A The EU climate target for 2040
A member of the European Commission will present the communication on the European climate target for 2040, followed by a discussion with representatives from civil society, business and trade unions. INFO & REGISTRATION

Feb. 22, 2024; 10:15 a.m.-4 p.m., Brussels (Belgium)/online
EMI, Conference Renewing Economic Integration in the EU Single Market
European Movement International (EMI) brings together key speakers such as European Commission Executive Vice-President Margrethe Vestager to engage in discussions on critical topics concerning the future of the Single Market, including semiconductor innovation and energy market integration INFO & REGISTRATION

Feb. 22, 2024; 5:30-8:30 p.m., Berlin (Germany)
Hertie School, Panel Discussion It’s the Economy, Stupid – Economic Implications of Rule of Law Breaches in the EU
The panel discussion will feature representatives from industry, politics, and sciences, who will talk about the interplay between the economics and politics of rule of law violations in the EU. INFO & REGISTRATION

News

EU launches naval mission in the Red Sea

On Monday in Brussels, the foreign ministers of the member states decided on the operation in the Red Sea, which goes by the name of “Aspides”, the Greek word for shields. “We have seen that the entire global economy is being affected by the Houthi attacks on civilian shipping,” said Minister Annalena Baerbock on the decision. It is not only European ships that are repeatedly endangered by Houthi missiles in the Red Sea.

“It is good that Germany is making a contribution to this mission”, said MEP David McAllister: “Our shipping companies will benefit from a clear European response”, said the Chairman of the Committee on Foreign Affairs in the European Parliament. The Bundeswehr is participating in the operation with the frigate “Hessen”, which set off from Wilhelmshaven on Feb. 8 with 240 soldiers on board. The Bundestag is due to approve the mandate for German participation on Friday.

In total, the operation will consist of at least four frigates, with Italy, Greece and Denmark also contributing ships alongside Germany. The headquarters of the operation, which is initially scheduled to last one year, will be located in Larissa, Greece. The frigates are to re-establish security for merchant ships along the important sea routes.

The mandate stipulates that rebel attacks may be repelled and drones shot down within the framework of international law. Unlike the US and UK deployment, however, the “Aspides” mandate excludes proactive attacks on Houthi positions in Yemen. It is a purely defensive operation, emphasized EU foreign policy chief Josep Borrell.

Yulia Navalnaya visits

The foreign ministers also received Yulia Navalnaya, the wife of Russian opposition politician Alexei Navalny. This was a statement of solidarity, as Borrell emphasized. Navalny had been “slowly murdered” in a Russian prison. The EU will spare no effort to hold Russia’s political leadership to account, it said in a statement.

However, there was no agreement on Borrell’s appeal to Israel’s government to renounce the planned military operation against Rafah in the Gaza Strip. 26 member states agreed, but Hungary prevented a decision. The country also blocked planned sanctions against extremist settlers who terrorize Palestinians in the West Bank.

Viktor Orbán’s resistance has so far also prevented an agreement on the 13th package of sanctions against Russia, which the EU wants to adopt before the second anniversary of the attack on Ukraine. The EU ambassadors want to make a new attempt on Wednesday to remove Hungary’s blockade. sti

  • EU foreign policy
  • EU-Außenpolitik
  • Navy
  • Russland
  • Security

EU Commission starts DSA proceedings against TikTok

Bytedance must now provide even more extensive information on Tiktok’s potential violations of the law – and may be required by the Commission to rectify any shortcomings.

The investigation focuses in particular on so-called “systemic risks”: negative effects, such as addictive behavior, that are fueled by algorithms. The so-called rabbit-hole effect will also be investigated: This theory states that users are presented with ever more radical content once they become interested in a piece of content. Particularly in connection with depictions of violence and politically radical content, there are fears that the recommendation algorithms will act as an amplification mechanism.

Protection of minors

The EU Commission also wants to investigate the extent to which the platform fulfills its obligations to protect minors. Here, the DSA places special requirements on platforms that are regularly used by young people – such as age verification systems and data protection.

According to TikTok, it has over 135 million monthly active users in the EU. “TikTok needs to take a close look at its services and carefully assess the risks they pose to its users – young and old alike”, says EU Commission Vice-President Margrethe Vestager. The EU Commission emphasizes that the formal opening does not yet allow any conclusions to be drawn about the outcome of the proceedings.

The proceedings were preceded by a formal request for information to Bytedance in November. If the suspicions are confirmed, the Commission can now order interim measures against the operator. If the operator does not comply with the orders, the Commission can impose penalties. In addition to financial penalties, this can go as far as blocking a service if the operator continues to defy the orders. fst

  • Europäische Kommission

Regulation on gas saving: EU ministers discuss extension

The topic is on the agenda for March 4: at the upcoming Energy Council, the EU energy ministers may decide on an extension of an emergency regulation on gas conservation from 2022. Discussions on the security of gas supply before the winter of 2024/25 and the need for flexibility for the energy transition are firmly planned.

Regulation 2022/1369 includes a voluntary 15 percent reduction in gas consumption, which can become mandatory in emergency situations. The law expires at the end of March and the Commission must evaluate the regulation by March 1.

According to REPowerEU, gas consumption should nevertheless fall rapidly

The think tank Bruegel does not expect an extension. “I see no valid justification for extending the demand reduction target beyond this period”, said energy expert Ben McWilliams yesterday.

On the other hand, the EU states would also have to significantly reduce their natural gas consumption due to the climate protection targets that have been agreed. According to RePowerEU, demand should fall from over 350 to less than 150 billion cubic meters (bcm) by 2030. ber

  • Energy crisis
  • Energy Prices
  • Natural gas

Study on the CAP: Germany ranks far behind in promoting competitiveness

Germany spends only a small proportion of EU agricultural funding on making farms competitive. In a European comparison, only Ireland performs worse. This is the result of a study commissioned by the European Parliament’s Committee on Agriculture. According to the study, eight percent of the CAP budget in Germany is spent on strengthening competitiveness, compared to an EU average of around 20 percent. Countries such as Poland and Italy use a third of their funds for this purpose.

The main reason for the wide range of subsidies is the varying use of subsidies linked to production volumes. In contrast to the area premiums, these linked payments are explicitly intended to improve the competitiveness of farms or compensate for deficits, says study co-author Arndt Münch from the Austrian Institute for Spatial Planning.

Tied funds distort the market

Member States can allocate up to 15 percent of direct payments as coupled payments to sectors of particular economic, social or environmental importance. However, Germany only allocates two percent as coupled payments for ewes, goats and suckler cows.

However, there are good reasons why Germany hardly makes use of this, says agricultural economist Sebastian Lakner from the University of Rostock. Otherwise, uncompetitive farms would be artificially kept on the market. The scientist recommends reducing the percentage of coupled payments across the EU. Currently, the different implementations in the member states lead to distortions of competition in the internal market.

Investments: Germany promotes less

Financial support under the second pillar is more targeted, says study author Münch. The second pillar of the CAP comprises support programs for sustainable and environmentally friendly farming and rural development. The measures for greater competitiveness here include, for example, the promotion of investments, knowledge transfer and cooperation, as well as start-up aid for young farmers or newcomers.

Germany also lags behind many countries when it comes to investment promotion and is in fifth to last place. The financial volume for the promotion of investments corresponds to around three percent of the CAP budget. The EU average is around four percent, with individual countries such as Poland and Hungary spending more than ten percent.

The authors of the study recommend: In the future, the EU must work towards a concept of “sustainable competitiveness“. One way could be to provide better financial rewards for public services such as environmental protection. jd

  • Agricultural Policy
  • Klima & Umwelt

Opinion

How the Green Deal can unlock more energy for Europe

By Angelika Niebler and Andreas Sichert
Orcan Energy CEO Andreas Sichert, CSU MEP Angelika Niebler.

Intentions are important, but actions are crucial. The European Green Deal is the EU’s central instrument for achieving its climate goals. It aims to make the Union’s economy fairer, wealthier, and more sustainable. Recently, the European Commission announced its climate targets for 2040 – aiming to reduce greenhouse gas emissions by 90 percent.

While the EU sees itself as a leader in climate transformation, companies based here are seeking production opportunities outside Europe. Our supposed leadership in climate action is thus called into question. The Green Deal, primarily based on regulation, risks overwhelming companies with bureaucratic challenges and prohibitions. In contrast, countries like the United States primarily rely on incentives, such as initiatives like the Inflation Reduction Act (IRA), to foster innovation and drive a more sustainable economy.

Europe must, therefore, intensify its efforts – and has two concrete levers to boost sustainable economic activities. This way, we can actively reduce emissions and build European champions in climate technology.

Making the deal a reality

Business decisions on expansion, whether to build new factories, and creating new jobs are based on the economic viability of the project. It is, therefore, essential for the EU to follow this logic. The “deal” as part of the “Green Deal” must be implemented based on an attractive business model.

To make the deal a reality, the EU is introducing the Net-Zero Industry Act (NZIA), Europe’s answer to the IRA. It is a key initiative to reduce emissions and scale up green technologies. By speeding up approval processes and reducing bureaucracy, we enhance Europe’s competitiveness.

Fast approval of NZIA

The NZIA is Europe’s first strong lever to drive a successful clean transition to climate neutrality. The agreement reached between the European Parliament and the Council on the NZIA covers a wide range of net-zero technologies. It is now crucial for EU lawmakers to swiftly approve this agreement.

A strong NZIA creates a lean and stable regulatory environment for businesses to develop accordingly.

Taxonomy: good intentions but room for improvement

The second key instrument for the EU to promote investments in clean technologies and thereby reduce emissions is taxonomy. However, its effectiveness in its current form is limited.

Firstly, the implementation of taxonomy is too complex, narrowly defined and slow. The relevant legal documents consist of over 600 pages of detailed criteria, making it difficult for companies to understand and implement the requirements. Furthermore, it only lists “successful” activities from the past, as innovation, by definition, cannot be part of such a list. We propose a continuous and rapid updating mechanism for the list to incorporate the latest clean innovations.

The time is right

In Germany, as well as in Europe as a whole, we see companies scaling their solutions in the US and Asia due to more favorable conditions. A sustainable, competitive economy is Europe’s opportunity to combine ambitious climate action with strong economic performance.

We are convinced: Climate champions must emerge from Europe and translate excellent research into strong companies. The NZIA is a good example of how Europe must implement the Green Deal: Once in force, it will help companies scale and stimulate private investment.

Economic prosperity and jobs emerge where market conditions are favorable – this explicitly requires a simple, harmonized regulatory environment. The NZIA and taxonomy are two important levers for Europe – if we design them correctly.

Angelika Niebler is a Member of the European Parliament for the CSU and serves, among other roles, on the Committee on Industry, Research, and Energy of the European Parliament. Andreas Sichert is the CEO of Orcan Energy. The company offers modules that convert waste heat into electricity.

  • Climate policy
  • European policy
  • ITRE
  • Net Zero Industry Act
  • Taxonomie
  • Taxonomy

Europe.table editorial team

EUROPE.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Yesterday, the CDU Executive Committee unanimously nominated Commission President Ursula von der Leyen as the lead candidate of the Christian Democratic Party family EPP in the European elections. In the election campaign, von der Leyen wants to score points with her plan to strengthen the competitiveness of European companies. She also reiterated her proposal to appoint a separate Commissioner for Defense. Given the threat posed to Europe by Russia, she said it was necessary to better organize the Community’s defense industry. Markus Grabitz has the details.

    Marie-Agnes Strack-Zimmermann also believes that the Commission must expand European cooperation in security policy. However, the Chairwoman of the Defense Committee in the Bundestag criticized von der Leyen. She should have prioritized security much earlier and thus made better use of the time without Trump in the White House, Strack-Zimmermann said at a Table.Media event. She called for an EU security summit to send a clear signal to the member states. Read Till Hoppe’s Analysis to find out what else she hopes to gain from the Weimar Triangle.

    TikTok is particularly popular with younger people. However, the platform not only provides entertaining dance trends, it has also been criticized for some time due to potential risks for users. TikTok is now facing proceedings by the EU Commission under the Digital Services Act. Read more in the News.

    We wish you a successful day.

    Your
    Sarah Schaefer
    Image of Sarah  Schaefer

    Feature

    Von der Leyen wants to score points in the election campaign with more competitiveness

    The CDU Executive Committee has unanimously nominated Commission President Ursula von der Leyen as the lead candidate of the Christian Democratic Party family EPP in the European elections. In the event of her re-election, her central project will be to strengthen the competitiveness of companies in Europe. Von der Leyen also insists on her proposal to appoint a separate Commissioner for Defense. “There is already a Commissioner for the internal market and industrial policy who is also responsible for defense”, said the 65-year-old.

    Given the threat posed to Europe by Russia, it was necessary to better organize the Community’s defense industry in the future. However, she did not want to dispute the member states’ competences. “The member states are responsible for organizing their armed forces.” She does not want to change this. The future Commissioner for Defence would, for example, be responsible for organizing the common defense fund of the member states.

    Elected as EPP lead candidate in Bucharest in March

    Von der Leyen is to be elected as the lead candidate of the European Christian Democrat party family at the EPP Congress in Bucharest on March 6-7. The prerequisite for this is that she is nominated by two other EPP member parties. The deadline is Feb. 21. The nomination of the other two EPP parties is considered a formality. Von der Leyen is not standing as a candidate for the European Parliament, for which she has been sharply criticized by Green MEPs. It is irritating that von der Leyen will not appear anywhere on the ballot paper, said Rasmus Andresen, spokesperson for the German Green delegation in the European Parliament.

    Von der Leyen’s plans focus on strengthening the competitiveness of European companies. “We must adapt the competitiveness of industry to the new conditions.” With the funds from the NextGenerationEU recovery fund, it was possible to avert a recession in the EU economy after the pandemic and to realign the EU economy to the necessary restructuring as part of the Green Deal.

    When it comes to reducing bureaucracy and strengthening competitiveness, she is looking forward to working with the Commission’s designated SME Envoy, Markus Pieper (CDU). She stands by the Commission’s promise to reduce reporting obligations for companies by 25 percent and to subject new legislative proposals to a review to determine whether they impair the competitiveness of companies.

    Her willingness to run for the office of Commission President for a second time is also driven by her concern for democracy: “I want to defend the success of the EU against divisions from within and without.”

    End of combustion engine is a sore point

    CDU party leader Friedrich Merz said after the nomination: “Ursula von der Leyen’s candidacy is linked to two messages.” On the one hand, she stands for the promise to “give people security in a comprehensive sense“. The second is that “the EU must secure prosperity”. The CDU and CSU will run for the European elections with a joint party program. The program commission is to hold its final meeting today, Tuesday, and the program is to be adopted on March 11 in a joint presidium meeting of the two sister parties.

    However, one point of contention is emerging between the lead candidate and the two sister parties. The CDU and CSU will go into the European elections with the demand to reverse the EU’s decision to ban combustion engines in new cars from 2035. According to information from Table.Media, von der Leyen initially stated at the CDU presidium meeting on the eve of the nomination that the EU had not decided on a total ban on combustion engines. When there were objections from participants, it was said that the Commission had already submitted a proposal to avert the ban on combustion engines.

    The fact is, however, that the decision was made to end the registration of vehicles with combustion engines in 2035. In addition, there is no EU decision on the registration of cars powered exclusively by climate-neutral fuels from 2035. The legal text merely states that the EU’s CO2 fleet legislation will be reviewed by the Commission in 2026. This would be an opportunity to revise the ban on combustion engines. The CDU and CSU are therefore eagerly awaiting to see how von der Leyen, as the lead candidate in the election campaign, will deal with the central demand of the parties nominating her.

    SPD and Greens call for clear demarcation from right-wing populists

    The lead candidates of the SPD and Greens are calling on the Christian Democratic party family to clearly reject cooperation with right-wing populist parties in the next European Parliament. The Green Party’s Terry Reintke, who is also the lead candidate of her party family at EU level, asks the following question concerning von der Leyen and the EPP: “Will they work together with authoritarian and far-right forces that want to scrap climate protection, social security, and democracy?” Or: “Will they work with pro-European forces to build a secure, sustainable, and democratic future?”

    Katarina Barley, who heads the list of German Social Democrats, said: “While the Union in Germany rules out any cooperation with the AfD, it is keeping the option open in the European Parliament to enter into strategic alliances with the right-wing populists and extremists.” This is often precisely against von der Leyen’s plans. “This even includes von der Leyen’s prestigious Green Deal project.” With dpa

    • Europawahlen 2024
    • European election 2024
    • EVP
    • NextGenerationEU
    • Ursula von der Leyen

    Strack-Zimmermann calls for security summit

    Marie-Agnes Strack-Zimmermann, Chair of the Bundestag’s Defense Committee, is calling for a European security conference at the highest political level given the threat posed by Russia. The EU heads of state and government should discuss the pressing issues of European security and defense policy in order to send a “clear commitment to their countries”, she said on Monday at an event organized by Table.Media and the European Movement Germany. “We now have a historic responsibility and we will have to justify to ourselves one day whether we have heard the gong, whether we are ready to really commit.”

    The FDP lead candidate for the European elections believes that the Weimar Triangle of Germany, France and Poland has a particular responsibility in this regard. “Someone has to get on the engine of this train and get going”, she said. Then the other European states would follow suit. Europeans have been discussing taking more responsibility for their own security for a long time, but too little has happened so far.

    Jana Puglierin, Senior Policy Fellow at the European Council on Foreign Relations, believes Berlin has a duty: “It is absolutely imperative that the German government does everything it can to make cooperation with Poland work,” she said. Franco-German cooperation in defense is often difficult, and Polish Prime Minister Donald Tusk can mediate here. “This three-way constellation is good for everyone involved.”

    ‘Von der Leyen did not use Trump-free time’

    At the Munich Security Conference this weekend, Chancellor Olaf Scholz once again called on the other EU states to provide Ukraine with more weapons and to do more for common security in Europe. Scholz has found allies here in the Baltic and Scandinavian states, says Puglierin. These countries, which traditionally rely heavily on the USA as a security guarantor, are prepared to expand European cooperation.

    Strack-Zimmermann also sees the EU Commission as having a duty. Commission President Ursula von der Leyen announced on Monday that she would be running for a second term in office and that she wanted to make security policy one of her priorities. Strack-Zimmermann criticized, however, that the CDU politician “did not take up the issue much earlier and did not use this Trump-free time”. It was obvious that von der Leyen was “acting based on logic: now you can talk about it without doing any harm”. Previously, she had preferred not to talk about weapons and had already avoided being photographed in front of armed fighter jets as Federal Minister of Defense.

    Scholz takes a skeptical view of the Defense Commissioner

    The FDP politician assumes that the Commission President will ultimately leave the issue to others. Von der Leyen has already announced that in a possible second term of office, she will create the remit of a Defense Commissioner.

    In Berlin, however, the proposal has met with skepticism for the time being, as defense policy is the sovereignty of the member states. “We would first have to consider what the point of such a commissioner post would be,” said government spokesperson Steffen Hebestreit. From Chancellor Scholz’s point of view, the first step would be for the EU defense ministers to have their own regular council.

    New program for the arms industry

    Von der Leyen, however, has in mind that a Defense Commissioner should primarily take care of the interests of the arms industry. According to the EU treaties, the Commission has a say here.

    The Commission is expected to present a new strategy for the defense industry (European Defence Industrial Strategy – EDIS) and a procurement program, the European Defence Investment Programme (EDIP), on March 5. The aim is to encourage Member States to order more military equipment jointly and also from European manufacturers. The authority is concerned that many armaments orders go to foreign manufacturers, for example from the USA or Israel.

    Von der Leyen therefore wants to create financial incentives: If several defense ministries join forces, they should receive a grant from the EU budget. The funds for this could come from the European Defense Fund, which was allocated an extra €1.5 billion until 2027 in the latest budget negotiations. The European Peace Facility could also be tapped into for this purpose. This has so far been used to compensate EU states for arms deliveries to Ukraine.

    ‘Industry must also take risks’

    In addition, von der Leyen has announced that she wants to give manufacturers planning security for investments through purchase guarantees. This should help companies to expand their production capacities in Europe. Strack-Zimmermann believes this is the right approach: manufacturers need reliable orders. But the industry cannot demand 20-year plans. “Of course, I expect an industry that earns real money to take risks.”

    ECFR expert Jana Puglierin is in favor of consolidation in the industry to bundle forces. However, as many companies are state-owned, they cannot be left to market forces. “The member states must be on board and be prepared to do so.” One prerequisite would also be to harmonize the different strict arms export guidelines of the member states to a greater extent.

    More money, but no new debt

    Puglierin is also calling for more EU funds to be mobilized for the defense industry, at least in the new financial period from 2028. However, Strack-Zimmermann refused to talk about new debt-financed EU pots at this stage, as suggested by Estonian Prime Minister Kaja Kallas and French President Emmanuel Macron.

    The FDP politician said that a needs analysis was needed first. “And then we look at the price and then we have to discuss whether this can be taken from the current budget, possibly at the expense of other wishes. Or do we have to make other proposals?” Making new pots of debt available straight away would run the risk of the money being wasted.

    • Defense Policy
    • EU
    • European Defense
    • Geopolitics
    • Security policy

    Events

    Feb. 21-22, 2024; London (United Kingdom)
    Envision, Conference Energy Storage Summit 2024
    Leading industry figures across Europe will come together to explore how energy storage can reach its full potential and will discuss recent challenges and opportunities. INFO & REGISTRATION

    Feb. 21-22, 2024; Brussels (Belgium)
    ETUI, Conference Future of work: rethinking workers’ rights in the digital age
    The European Trade Union Institute (ETUI) aims to explore the main transformative implications of digital technology for working conditions and labor rights, discuss normative options, and formulate constructive proposals for legislators with scholars from multiple disciplines. INFO & REGISTRATION

    Feb. 21, 2024; Brussels (Belgium)
    EUI, Conference Moving forward together: what’s next for EU mobility & transport?
    The European University Institute (EUI), in cooperation with the European Commission, organizes an academic conference on the state of play on EU transport policy and the challenges and priorities for the future of EU transport and mobility. INFO & REGISTRATION

    Feb. 21, 2024; 8:30-9 a.m., Berlin (Germany)/online
    Hertie School, Presentation EU to go – European election year 2024: What to expect?
    This event will provide an outlook on the European election year 2024. INFO & REGISTRATION

    Feb. 21, 2024; 9 a.m.-6:30 p.m., Brussels (Belgium)
    Digital Europe, Conference Masters of Digital 2024
    Policymakers, industry leaders, and experts will have a platform to discuss the course for Europe’s digital transformation, delving into the impact of AI and emerging technologies on Europe’s economy, society, and sustainability. INFO & REGISTRATION

    Feb. 21, 2024; 10-11:15 a.m., online
    TÜV, Seminar Armed for NIS-2: What the directive means and how you can protect yourself against cyber threats
    The seminar provides an introduction to the NIS 2 Directive to strengthen cyber security in the European Union and answers questions on the implementation obligation for companies. INFO & REGISTRATION

    Feb. 21, 2024; 3-4:30 p.m., online
    ERCST, Roundtable ETS review of Carbon Leakage Risks for CBAM Export Goods
    The European Roundtable on Climate Change and Sustainable Transition (ERCST) will invite a group of stakeholders to discuss questions concerning the implementation of CBAM legislation, focusing on the carbon leakage risk for goods subject to CBAM and produced in the EU for export. INFO & REGISTRATION

    Feb. 21, 2024; 4-6 p.m., Berlin (Germany)
    EK, Q&A The EU climate target for 2040
    A member of the European Commission will present the communication on the European climate target for 2040, followed by a discussion with representatives from civil society, business and trade unions. INFO & REGISTRATION

    Feb. 22, 2024; 10:15 a.m.-4 p.m., Brussels (Belgium)/online
    EMI, Conference Renewing Economic Integration in the EU Single Market
    European Movement International (EMI) brings together key speakers such as European Commission Executive Vice-President Margrethe Vestager to engage in discussions on critical topics concerning the future of the Single Market, including semiconductor innovation and energy market integration INFO & REGISTRATION

    Feb. 22, 2024; 5:30-8:30 p.m., Berlin (Germany)
    Hertie School, Panel Discussion It’s the Economy, Stupid – Economic Implications of Rule of Law Breaches in the EU
    The panel discussion will feature representatives from industry, politics, and sciences, who will talk about the interplay between the economics and politics of rule of law violations in the EU. INFO & REGISTRATION

    News

    EU launches naval mission in the Red Sea

    On Monday in Brussels, the foreign ministers of the member states decided on the operation in the Red Sea, which goes by the name of “Aspides”, the Greek word for shields. “We have seen that the entire global economy is being affected by the Houthi attacks on civilian shipping,” said Minister Annalena Baerbock on the decision. It is not only European ships that are repeatedly endangered by Houthi missiles in the Red Sea.

    “It is good that Germany is making a contribution to this mission”, said MEP David McAllister: “Our shipping companies will benefit from a clear European response”, said the Chairman of the Committee on Foreign Affairs in the European Parliament. The Bundeswehr is participating in the operation with the frigate “Hessen”, which set off from Wilhelmshaven on Feb. 8 with 240 soldiers on board. The Bundestag is due to approve the mandate for German participation on Friday.

    In total, the operation will consist of at least four frigates, with Italy, Greece and Denmark also contributing ships alongside Germany. The headquarters of the operation, which is initially scheduled to last one year, will be located in Larissa, Greece. The frigates are to re-establish security for merchant ships along the important sea routes.

    The mandate stipulates that rebel attacks may be repelled and drones shot down within the framework of international law. Unlike the US and UK deployment, however, the “Aspides” mandate excludes proactive attacks on Houthi positions in Yemen. It is a purely defensive operation, emphasized EU foreign policy chief Josep Borrell.

    Yulia Navalnaya visits

    The foreign ministers also received Yulia Navalnaya, the wife of Russian opposition politician Alexei Navalny. This was a statement of solidarity, as Borrell emphasized. Navalny had been “slowly murdered” in a Russian prison. The EU will spare no effort to hold Russia’s political leadership to account, it said in a statement.

    However, there was no agreement on Borrell’s appeal to Israel’s government to renounce the planned military operation against Rafah in the Gaza Strip. 26 member states agreed, but Hungary prevented a decision. The country also blocked planned sanctions against extremist settlers who terrorize Palestinians in the West Bank.

    Viktor Orbán’s resistance has so far also prevented an agreement on the 13th package of sanctions against Russia, which the EU wants to adopt before the second anniversary of the attack on Ukraine. The EU ambassadors want to make a new attempt on Wednesday to remove Hungary’s blockade. sti

    • EU foreign policy
    • EU-Außenpolitik
    • Navy
    • Russland
    • Security

    EU Commission starts DSA proceedings against TikTok

    Bytedance must now provide even more extensive information on Tiktok’s potential violations of the law – and may be required by the Commission to rectify any shortcomings.

    The investigation focuses in particular on so-called “systemic risks”: negative effects, such as addictive behavior, that are fueled by algorithms. The so-called rabbit-hole effect will also be investigated: This theory states that users are presented with ever more radical content once they become interested in a piece of content. Particularly in connection with depictions of violence and politically radical content, there are fears that the recommendation algorithms will act as an amplification mechanism.

    Protection of minors

    The EU Commission also wants to investigate the extent to which the platform fulfills its obligations to protect minors. Here, the DSA places special requirements on platforms that are regularly used by young people – such as age verification systems and data protection.

    According to TikTok, it has over 135 million monthly active users in the EU. “TikTok needs to take a close look at its services and carefully assess the risks they pose to its users – young and old alike”, says EU Commission Vice-President Margrethe Vestager. The EU Commission emphasizes that the formal opening does not yet allow any conclusions to be drawn about the outcome of the proceedings.

    The proceedings were preceded by a formal request for information to Bytedance in November. If the suspicions are confirmed, the Commission can now order interim measures against the operator. If the operator does not comply with the orders, the Commission can impose penalties. In addition to financial penalties, this can go as far as blocking a service if the operator continues to defy the orders. fst

    • Europäische Kommission

    Regulation on gas saving: EU ministers discuss extension

    The topic is on the agenda for March 4: at the upcoming Energy Council, the EU energy ministers may decide on an extension of an emergency regulation on gas conservation from 2022. Discussions on the security of gas supply before the winter of 2024/25 and the need for flexibility for the energy transition are firmly planned.

    Regulation 2022/1369 includes a voluntary 15 percent reduction in gas consumption, which can become mandatory in emergency situations. The law expires at the end of March and the Commission must evaluate the regulation by March 1.

    According to REPowerEU, gas consumption should nevertheless fall rapidly

    The think tank Bruegel does not expect an extension. “I see no valid justification for extending the demand reduction target beyond this period”, said energy expert Ben McWilliams yesterday.

    On the other hand, the EU states would also have to significantly reduce their natural gas consumption due to the climate protection targets that have been agreed. According to RePowerEU, demand should fall from over 350 to less than 150 billion cubic meters (bcm) by 2030. ber

    • Energy crisis
    • Energy Prices
    • Natural gas

    Study on the CAP: Germany ranks far behind in promoting competitiveness

    Germany spends only a small proportion of EU agricultural funding on making farms competitive. In a European comparison, only Ireland performs worse. This is the result of a study commissioned by the European Parliament’s Committee on Agriculture. According to the study, eight percent of the CAP budget in Germany is spent on strengthening competitiveness, compared to an EU average of around 20 percent. Countries such as Poland and Italy use a third of their funds for this purpose.

    The main reason for the wide range of subsidies is the varying use of subsidies linked to production volumes. In contrast to the area premiums, these linked payments are explicitly intended to improve the competitiveness of farms or compensate for deficits, says study co-author Arndt Münch from the Austrian Institute for Spatial Planning.

    Tied funds distort the market

    Member States can allocate up to 15 percent of direct payments as coupled payments to sectors of particular economic, social or environmental importance. However, Germany only allocates two percent as coupled payments for ewes, goats and suckler cows.

    However, there are good reasons why Germany hardly makes use of this, says agricultural economist Sebastian Lakner from the University of Rostock. Otherwise, uncompetitive farms would be artificially kept on the market. The scientist recommends reducing the percentage of coupled payments across the EU. Currently, the different implementations in the member states lead to distortions of competition in the internal market.

    Investments: Germany promotes less

    Financial support under the second pillar is more targeted, says study author Münch. The second pillar of the CAP comprises support programs for sustainable and environmentally friendly farming and rural development. The measures for greater competitiveness here include, for example, the promotion of investments, knowledge transfer and cooperation, as well as start-up aid for young farmers or newcomers.

    Germany also lags behind many countries when it comes to investment promotion and is in fifth to last place. The financial volume for the promotion of investments corresponds to around three percent of the CAP budget. The EU average is around four percent, with individual countries such as Poland and Hungary spending more than ten percent.

    The authors of the study recommend: In the future, the EU must work towards a concept of “sustainable competitiveness“. One way could be to provide better financial rewards for public services such as environmental protection. jd

    • Agricultural Policy
    • Klima & Umwelt

    Opinion

    How the Green Deal can unlock more energy for Europe

    By Angelika Niebler and Andreas Sichert
    Orcan Energy CEO Andreas Sichert, CSU MEP Angelika Niebler.

    Intentions are important, but actions are crucial. The European Green Deal is the EU’s central instrument for achieving its climate goals. It aims to make the Union’s economy fairer, wealthier, and more sustainable. Recently, the European Commission announced its climate targets for 2040 – aiming to reduce greenhouse gas emissions by 90 percent.

    While the EU sees itself as a leader in climate transformation, companies based here are seeking production opportunities outside Europe. Our supposed leadership in climate action is thus called into question. The Green Deal, primarily based on regulation, risks overwhelming companies with bureaucratic challenges and prohibitions. In contrast, countries like the United States primarily rely on incentives, such as initiatives like the Inflation Reduction Act (IRA), to foster innovation and drive a more sustainable economy.

    Europe must, therefore, intensify its efforts – and has two concrete levers to boost sustainable economic activities. This way, we can actively reduce emissions and build European champions in climate technology.

    Making the deal a reality

    Business decisions on expansion, whether to build new factories, and creating new jobs are based on the economic viability of the project. It is, therefore, essential for the EU to follow this logic. The “deal” as part of the “Green Deal” must be implemented based on an attractive business model.

    To make the deal a reality, the EU is introducing the Net-Zero Industry Act (NZIA), Europe’s answer to the IRA. It is a key initiative to reduce emissions and scale up green technologies. By speeding up approval processes and reducing bureaucracy, we enhance Europe’s competitiveness.

    Fast approval of NZIA

    The NZIA is Europe’s first strong lever to drive a successful clean transition to climate neutrality. The agreement reached between the European Parliament and the Council on the NZIA covers a wide range of net-zero technologies. It is now crucial for EU lawmakers to swiftly approve this agreement.

    A strong NZIA creates a lean and stable regulatory environment for businesses to develop accordingly.

    Taxonomy: good intentions but room for improvement

    The second key instrument for the EU to promote investments in clean technologies and thereby reduce emissions is taxonomy. However, its effectiveness in its current form is limited.

    Firstly, the implementation of taxonomy is too complex, narrowly defined and slow. The relevant legal documents consist of over 600 pages of detailed criteria, making it difficult for companies to understand and implement the requirements. Furthermore, it only lists “successful” activities from the past, as innovation, by definition, cannot be part of such a list. We propose a continuous and rapid updating mechanism for the list to incorporate the latest clean innovations.

    The time is right

    In Germany, as well as in Europe as a whole, we see companies scaling their solutions in the US and Asia due to more favorable conditions. A sustainable, competitive economy is Europe’s opportunity to combine ambitious climate action with strong economic performance.

    We are convinced: Climate champions must emerge from Europe and translate excellent research into strong companies. The NZIA is a good example of how Europe must implement the Green Deal: Once in force, it will help companies scale and stimulate private investment.

    Economic prosperity and jobs emerge where market conditions are favorable – this explicitly requires a simple, harmonized regulatory environment. The NZIA and taxonomy are two important levers for Europe – if we design them correctly.

    Angelika Niebler is a Member of the European Parliament for the CSU and serves, among other roles, on the Committee on Industry, Research, and Energy of the European Parliament. Andreas Sichert is the CEO of Orcan Energy. The company offers modules that convert waste heat into electricity.

    • Climate policy
    • European policy
    • ITRE
    • Net Zero Industry Act
    • Taxonomie
    • Taxonomy

    Europe.table editorial team

    EUROPE.TABLE EDITORIAL OFFICE

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