Dear reader,
CDU leader Friedrich Merz urges Chancellor Olaf Scholz to immediately call a vote of confidence. The leadership of the CDU/CSU faction argues that otherwise the red-green minority government could knock down stakes internationally and in Brussels for which it lacks democratic legitimacy. In order to keep an eye on them, the CDU/CSU wants to invite the SPD and Green ministers to the Bundestag’s specialist committees before EU Council meetings.
From a legal perspective, however, it makes no difference if the Scholz government is only in office on an executive basis after losing the vote of confidence. Formally, the federal government could still “regularly exercise Germany’s voting rights in EU bodies,” says Nicolai von Ondarza, EU expert at the German Institute for International and Security Affairs. In addition, there are hardly any votes due at EU level in the coming weeks: Ursula von der Leyen’s new Commission is expected to take office on December 1, and the legislative machinery in the Council will probably only really get going in January and February.
However, the election of Donald Trump is likely to increase the urgency of political decisions, for example on the war in Ukraine. Both the scope for negotiation and the political weight of a caretaker Federal Chancellor will be significantly limited, says Ondarza. However, Scholz’s authority has suffered anyway. One indication: Poland’s Prime Minister Donald Tusk invited French President Emmanuel Macron, British Prime Minister Keir Starmer and NATO Secretary General Mark Rutte to talks on how to proceed in the Ukraine war after Trump’s victory – but not the Chancellor.
The EU partners have a great interest in ensuring that the most important member state quickly has a fully functioning government again. Daniel Caspary, Chairman of the CDU/CSU MEPs in the European Parliament, urges: It would be good “if Germany finally had a new government that can also contribute to Europe and is not just busy winding things up in Germany.”
Feature
Why the hydrogen economy is making little progress
The EU will probably fall short of its targets for green hydrogen from the hydrogen strategy this year. Less than the planned six gigawatts of new electrolyzers will be built in the EU, said the outgoing head of the Renewable Hydrogen Coalition, Ulrik Stridbæk from Ørsted, last week at the association’s annual summit in Brussels.
There are now three priorities for the EU, said his co-chairman Håkon Volldal, CEO of electrolysis manufacturer Nel Hydrogen:
- Funding must become simpler, more comprehensive and available more quickly.
- Mandatory hydrogen targets for 2040: There are such targets for 2030 for industry and transport. However, France and other EU countries are pushing for a smaller number of energy policy targets, particularly for renewable energy sources such as green hydrogen and for individual sectors.
- Infrastructure for hydrogen and green electricity, i.e. pipelines, storage facilities and wind and solar parks: “We need renewable electricity,” said Volldal.
Electricity prices fall more slowly than planned
The expansion of renewables is still falling short of targets, which is why electricity prices are not falling as much as predicted, said Arthur Daemers from the Renewable Hydrogen Coalition. The faltering grid expansion is exacerbating the situation. “Many project developers ask me where in the country they can find two gigawatts of grid connection capacity,” reported the Portuguese Secretary of State for Energy, Maria João Pereira. “I have to tell them: nowhere!”
Portugal and Spain have particularly low production costs for green hydrogen. In the first tender round of the European Hydrogen Bank, the lion’s share of the contracts were awarded to the two countries.
Hydrogen bank puts pioneers at a disadvantage
According to the industry, the Commission wasted potential when designing the tender criteria because advanced projects were effectively excluded. “Some projects secured funding from other sources at an early stage. However, this is not enough to close the cost gap,” said Ana Quelhas, the new chairwoman of the Renewable Hydrogen Coalition and manager at Portuguese energy supplier EDP. Due to the hydrogen bank’s accumulation ban, they now have no chance of receiving the additional funding that is still lacking. The Commission must change this, demands the Hydrogen Coalition.
In any case, the projects are not failing due to a lack of demand – as has often been reported recently, said Quelhas. MEP Tsvetelina Penkova (S&D) offered a vague prospect of more funding: “The resources are there. We need to make sure they get to where they are needed most.” Budget experts still see untapped treasures for clean industries in the expiring Recovery and Resilience Fund and in the next EU budget from 2028 through the use of the huge cohesion and structural funds.
German government crisis unsettles hydrogen companies
The association also sees a brake on the development of the hydrogen economy in the recurring doubts about the expiry of the free allocation of certificates in emissions trading. The largest consumers of hydrogen, of all things, are currently still receiving free emission allowances; this practice is set to end in 2034 with the introduction of the CBAM – provided the EU sticks to its decisions.
However, the analysis service BNEF also recognizes regulatory uncertainties in the USA. The tax credits from the IRA have still not been implemented, said analyst Martin Tengler. Joachim Lind Koefoed from Copenhagen Infrastructure Partners described the current government crisis in Germany as a major uncertainty factor, especially for hydrogen companies: “All of us have projects in Germany, with German involvement or are dependent on suppliers from there. Will the new government pursue a different policy?” he said, addressing the participants.
‘PPAs can be very expensive’
On the cost side, BNEF cites not only the sluggish expansion of renewables and general inflation as hurdles but also grid fees and the cost of long-term power purchase agreements. “PPAs can be very expensive,” says Tengler about the supposed silver bullet to cheap green electricity.
According to Tengler, one reason for the recent rejections is a lack of experience: “Developers and analysts are beginning to understand that projects consist of more than just electrolysis stacks and liquefaction technology.” Transformers, cables, compressors and other scarce components also have to be procured and paid for.
However, the BNEF expert also sees reason for hope. Costs could fall by half by 2050 and the EU targets for green hydrogen for 2030 are still achievable – even if companies in Western Europe will probably have to overcompensate for sluggish demand from the East. Companies from the EU currently account for half of all binding purchase agreements for green hydrogen worldwide.
Translation missing.
News
Várhelyi: MEPs continue discussions
The coordinators of the Environment and Agriculture Committee have not reached an agreement on the Commissioner-designate for Health and Animal Welfare, Olivér Várhelyi (PE). MEPs now want to decide on Wednesday if possible.
After his hearing last Wednesday, the Hungarian had to answer further questions, discussed by the coordinators on Monday. The S&D rejects Várhelyi’s current portfolio. According to Table.Briefings, the Social Democrats were dissatisfied with his answers on abortion and vaccines from Russia and China. In their opinion, he is also too much on the side of the pharmaceutical industry.
Animal health hotly disputed
According to the group, the changes to Várhelyi’s portfolio must be substantial. However, some in Parliament are critical of the proposal to hand over responsibility for animal health to the designated Agriculture Commissioner Christophe Hansen (EPP). The issue of antibiotic resistance, for example, should remain in the hands of health politicians.
The Social Democrats do not want to be put off by fears that Hungary’s Prime Minister Viktor Orbán could delay the new Commission taking office. Orbán cannot delay a possible subsequent nomination forever, according to the parliamentary group. Legally, it is even possible for a member state not to receive a commissioner post. ber
European Parliament: demands on steel and industrial policy
MEPs have formulated their industrial policy positions ahead of the final hearings of the future Commissioners today, Tuesday. A cross-party group led by SPD MEP Jens Geier submitted its recommendations for the steel sector to Commissioner-designate for Industry Stéphane Séjourné on Friday evening.
They include calls for lead markets for green steel and the use of trade defense instruments. The paper was signed by dozens of MEPs from the S&D and EPP as well as Green MEPs Terry Reintke and Michael Bloss and Renew politician Marie-Pierre Vedrenne.
Bloss also published a paper on Monday with “Five steps for a sustainable industry.” Among other things, the Green politician calls for the approval of cross-border electricity grid connections to be transferred to a new European coordination authority and for a Buy European Act for funding instruments and in procurement. ber
Critical raw materials: BDI demands more speed
The Federation of German Industries (BDI) called for a faster pace for raw materials policy at its Raw Materials Congress in Berlin on Monday. “Germany must finally invest more in its raw materials security,” said BDI President Siegfried Russwurm. “The dangers and risks are obvious. But the pace of reaction is far too slow.”
Parliamentary State Secretary Franziska Brantner, who had stepped in for Federal Economics Minister Habeck, did try to spread confidence. For example, by pointing to a significantly reduced dependence on raw materials from Russia or the recently launched raw materials fund. However, €1 billion – the size of the fund – is not a lot of money for raw materials projects. And Brantner also warned: “Compared to two years ago, we are not less dependent on China, but more.”
Study: 115 billion damage without imports from China
In a new publication, the BDI and management consultants Roland Berger point out the dangers of focusing too much on China. It states that Germany will have imported half of its lithium products from China by 2024. The study calculates an extreme scenario: If these imports were to cease immediately, it would cost Germany up to €115 billion in added value. This corresponds to around 3 percent of gross domestic product – a similar impact to the coronavirus pandemic.
Such a scenario could occur, for example, if China were to attack Taiwan. It would also be possible for the People’s Republic to use its quasi-monopoly on lithium as a lever of power – it has already done so with other raw materials in the past. “Politicians must do everything they can to prevent such a worst-case scenario,” said Russwurm.
BDI: 40 projects needed to achieve CRMA targets
The BDI President praised the German government’s key issues paper on the supply of raw materials and the EU’s Critical Raw Materials Act (CRMA). However, he also warned: “If we want to achieve the CRMA targets by 2030, at least 10 new mines, 15 processing plants and 15 large recycling plants must be built in Europe. That is very ambitious.”
170 project applications were received by the EU Commission during the first tender round up to the end of August. In March, the Commission intends to nominate the “strategic raw materials projects” provided for in the CRMA, which will then receive the status of overriding public interest and will be treated as a priority by the responsible authorities. It is not yet clear how many projects the Commission will select.
One of the applicants is the British company Anglo American with the Sakkati mining project for copper, nickel and other raw materials in Finland. 13 applications come from Germany.
Logistical problems complicate partnerships
The BDI is calling for the exploitation of the potential of domestic raw material deposits. According to the new study, Germany could cover 12 percent of its lithium requirements with its own resources. Russwurm mentions in particular the deposits in the Ore Mountains and the Upper Rhine Graben. “There are no safer sources of raw materials than those in our own country.” However, this requires above all more social acceptance, the importance of raw materials must “get into people’s heads.”
The study also concludes that international raw materials partnerships should be strengthened. Toralf Haag, the new CEO of copper group Aurubis, cites the sometimes inadequate financing as an obstacle to their success. He also emphasizes logistical problems: raw materials from partner countries such as Kazakhstan have to be transported to Germany by train and ship, which is very cumbersome.
The third field of action for the BDI is the circular economy. According to the authors of the study, Germany is still the global market leader in this area. Franziska Brantner also says: “The circular economy should be a priority for the next government.” leo
- China
- Critical Raw Materials Act
- CRMA
- Kreislaufwirtschaft
- Lithium
- Raw materials strategy
- Rohstoffstrategie
COP29: CBAM almost causes agenda dispute
The EU has prevailed: Climate action measures that impact trade will not be on the agenda at this year’s UN Climate Change Conference in Baku (COP29). China came to COP29 with the demand to discuss so-called “unilateral trade measures” in the negotiations. The EU’s Carbon Border Adjustment Mechanism (CBAM) is a particular thorn in Beijing’s side. Brazil, South Africa and India supported the motion.
Europe considers the climate negotiations to be the wrong place and believes the dispute is better handled at the World Trade Organization. The EU has thus managed to ensure that the issue is not included on the agenda. Instead, the Azerbaijani COP presidency wants to include issues like CBAM and the IRA in its “consultations” with the various states. China was satisfied with the decision.
Developing countries fear Trump will create new trade barriers
This compromise means that although the issue is not off the table, it does not play a role in the official negotiating rooms. However, the risk of another dispute erupting in Baku has not been averted, as developing countries fear that Trump’s re-election will lead to further trade barriers.
Clashes over the agenda at UN climate conferences are not uncommon, and CBAM has long been a source of disagreement. China sees climate action instruments such as CBAM, IRA or the EU’s anti-deforestation law as a violation of the Framework Convention on Climate Change, as Beijing believes they promote protectionism and discrimination against developing countries. luk
Seven proposals for AI factories
As part of the EuroHPC Joint Undertaking (JU), the European Commission has received seven proposals for the establishment of AI factories. The AI factories are intended to strengthen Europe’s leading role in the field of trustworthy artificial intelligence. A total of 15 EU member states and two associated participating states submitted their proposals.
The EuroHPC JU, a public-private partnership between the EU, participating European states and industry partners, is building a high-performance computing (HPC) ecosystem in Europe and providing access to world-class supercomputers and quantum computers.
With the planned AI factories, the Commission aims to create a European ecosystem that develops advanced AI models and promotes AI solutions. The AI factories will use the EU’s high-performance computers and combine computing power, data and specialist staff to significantly increase the computing power available for AI in Europe. These resources will be available to European start-ups, industry and research.
Proposal also from Germany
The seven proposals submitted came from:
- Finland (together with the Czech Republic, Denmark, Estonia, Norway and Poland)
- Luxembourg
- Sweden
- Germany
- Italy (in cooperation with Austria and Slovenia)
- Greece
Spain is planning a proposal with Portugal, Romania and Turkey, which is expected shortly.
An independent panel of experts will evaluate the proposals and announce the selection of the first AI factories in December. Shortly afterwards, the EuroHPC JU will start implementation. Cyprus and Slovenia have also expressed interest in joining an existing AI factory or creating a new one at a later date. The next deadline for further proposals is February 1, 2025. vis
- Künstliche Intelligenz-Verordnung
Controversial government alliance in Lithuania
In Lithuania, the Social Democrats have agreed on a controversial government alliance a good two weeks after the parliamentary elections. Following their election victory, they want to govern with the Democratic Union for Lithuania and the newly founded populist party Dawn of Nemunas, whose chairman is on trial for alleged anti-Semitic comments.
The three parties signed a coalition agreement in Vilnius, which also defines the distribution of the most important posts and ministerial portfolios in the Baltic country. Together, the three-party alliance has 86 of the 141 seats in parliament.
However, President Gitanas Nausėda had announced he would not appoint any members of Nemunas’ Dawn party as ministers in the next government. In Lithuania, ministers are appointed and dismissed by the president at the suggestion of the head of government. It could be that the party will now nominate technocrats for the ministerial posts intended for them.
Party leader Žemaitaitis loses mandate as member of parliament
The participation of Nemunas’ Dawn in government – contrary to announcements made by the Social Democrats before the election – caused criticism and outrage in Lithuania and internationally. The protest party, which came third in the vote in October, combines left-wing positions with a right-wing populist program.
The main concerns are directed at party leader Remigijus Žemaitaitis, who has attracted attention on several occasions for making anti-Semitic statements. As a result, the 42-year-old lost his seat as a member of parliament in the spring.
A rally against the inclusion of Nemunas’ Dawn Party in the government is planned before the constituent session of parliament on Thursday. There had also been criticism from representatives of Israel, the US and Germany. “An alliance with an anti-Semitic party is incompatible with our values,” wrote the SPD foreign policy expert and chairman of the German Bundestag’s Foreign Affairs Committee, Michael Roth, on X.
Žemaitaitis, who is not slated for a government post, affirmed in a letter to the ambassadors of the EU and NATO countries as well as Israel that he does not hold any anti-Semitic views. dpa
Translation missing.
Dessert
Brussels’ nerds: Parliament cuts its own teeth at the hearings
Anyone who wanted to follow the hearings for the Commission candidates last week needed stamina and plenty of caffeine. For three hours each, the Commissioners-designate practiced repeating the same content of the mission letters they had received from the Commission President.
Some Commissioners-designate thankfully spiced up their answers with examples and anecdotes. However, the listeners mostly looked in vain for concrete commitments or political statements that went beyond von der Leyen’s specifications.
From the perspective of the Commission candidates, this is a clever tactic. For them, it makes no sense to give Parliament more than is absolutely necessary. The question is rather what Parliament wants to achieve.
Brief spotlight for the MPs
Most MPs pack three, four, sometimes five questions into their first round of questions. The candidate then has two minutes to answer. The more questions they are asked, the better they can choose which question they actually want to answer. Those MPs who are allowed to ask one more question usually use their extra time to ask even more questions instead of insisting on an unsatisfactory part of the answer and demanding more details.
As a result, instead of behaving like a respectable body of examiners, Parliament behaves like a bunch of nerds who want to show the Commissioner what clever questions they have come up with
Parliament itself is partly to blame: It has agreed on a hearing mode in which as many MEPs as possible are allowed to appear briefly in the spotlight of the hearing cameras. A mode in which fewer MPs have more time and are allowed to ask more questions would undoubtedly be more effective. They should also have the right to cut off the future Commissioner if he does not give a concrete answer and lets time pass with vague formulations.
However, this would presuppose that Parliament actually has an interest in more effective hearings. This is doubtful. So far, the performance of the Commissioner candidates has hardly been decisive for the parliamentarians.
Tame hearings are useless at best
Commissioners-designate who performed poorly in the hearing, for example Marta Kos and Jessika Roswall, were nevertheless confirmed because MEPs did not want to risk retribution against their own party’s Commission candidates. The actual shaky candidates are Olivér Várhelyi, who showed a commanding performance in the hearing, and Raffaele Fitto and Teresa Ribera, whose hearings are still pending.
An exceptionally good or bad performance during the hearing would probably not be without consequences for Fitto and Ribera, but the hearings are of secondary importance. Above all, there is a power struggle between the political groups to influence the European coalition of the coming years in their favor.
Power struggles between different political camps are inevitable. However, it is questionable whether the hearings are necessary for this. It looks like an attempt to add an element of US political entertainment to the consensus-oriented EU policy system in order to make EU politics more entertaining. In its current form, however, it threatens to have the opposite effect. Tame hearings, the results of which are not incorporated into the composition of a future Commission, are at best useless. At worst, they will lead to further alienation between the EU and its citizens. János Allenbach-Ammann
Europe.table editorial team
EUROPE.TABLE EDITORIAL OFFICE
Dear reader,
CDU leader Friedrich Merz urges Chancellor Olaf Scholz to immediately call a vote of confidence. The leadership of the CDU/CSU faction argues that otherwise the red-green minority government could knock down stakes internationally and in Brussels for which it lacks democratic legitimacy. In order to keep an eye on them, the CDU/CSU wants to invite the SPD and Green ministers to the Bundestag’s specialist committees before EU Council meetings.
From a legal perspective, however, it makes no difference if the Scholz government is only in office on an executive basis after losing the vote of confidence. Formally, the federal government could still “regularly exercise Germany’s voting rights in EU bodies,” says Nicolai von Ondarza, EU expert at the German Institute for International and Security Affairs. In addition, there are hardly any votes due at EU level in the coming weeks: Ursula von der Leyen’s new Commission is expected to take office on December 1, and the legislative machinery in the Council will probably only really get going in January and February.
However, the election of Donald Trump is likely to increase the urgency of political decisions, for example on the war in Ukraine. Both the scope for negotiation and the political weight of a caretaker Federal Chancellor will be significantly limited, says Ondarza. However, Scholz’s authority has suffered anyway. One indication: Poland’s Prime Minister Donald Tusk invited French President Emmanuel Macron, British Prime Minister Keir Starmer and NATO Secretary General Mark Rutte to talks on how to proceed in the Ukraine war after Trump’s victory – but not the Chancellor.
The EU partners have a great interest in ensuring that the most important member state quickly has a fully functioning government again. Daniel Caspary, Chairman of the CDU/CSU MEPs in the European Parliament, urges: It would be good “if Germany finally had a new government that can also contribute to Europe and is not just busy winding things up in Germany.”
Feature
Why the hydrogen economy is making little progress
The EU will probably fall short of its targets for green hydrogen from the hydrogen strategy this year. Less than the planned six gigawatts of new electrolyzers will be built in the EU, said the outgoing head of the Renewable Hydrogen Coalition, Ulrik Stridbæk from Ørsted, last week at the association’s annual summit in Brussels.
There are now three priorities for the EU, said his co-chairman Håkon Volldal, CEO of electrolysis manufacturer Nel Hydrogen:
- Funding must become simpler, more comprehensive and available more quickly.
- Mandatory hydrogen targets for 2040: There are such targets for 2030 for industry and transport. However, France and other EU countries are pushing for a smaller number of energy policy targets, particularly for renewable energy sources such as green hydrogen and for individual sectors.
- Infrastructure for hydrogen and green electricity, i.e. pipelines, storage facilities and wind and solar parks: “We need renewable electricity,” said Volldal.
Electricity prices fall more slowly than planned
The expansion of renewables is still falling short of targets, which is why electricity prices are not falling as much as predicted, said Arthur Daemers from the Renewable Hydrogen Coalition. The faltering grid expansion is exacerbating the situation. “Many project developers ask me where in the country they can find two gigawatts of grid connection capacity,” reported the Portuguese Secretary of State for Energy, Maria João Pereira. “I have to tell them: nowhere!”
Portugal and Spain have particularly low production costs for green hydrogen. In the first tender round of the European Hydrogen Bank, the lion’s share of the contracts were awarded to the two countries.
Hydrogen bank puts pioneers at a disadvantage
According to the industry, the Commission wasted potential when designing the tender criteria because advanced projects were effectively excluded. “Some projects secured funding from other sources at an early stage. However, this is not enough to close the cost gap,” said Ana Quelhas, the new chairwoman of the Renewable Hydrogen Coalition and manager at Portuguese energy supplier EDP. Due to the hydrogen bank’s accumulation ban, they now have no chance of receiving the additional funding that is still lacking. The Commission must change this, demands the Hydrogen Coalition.
In any case, the projects are not failing due to a lack of demand – as has often been reported recently, said Quelhas. MEP Tsvetelina Penkova (S&D) offered a vague prospect of more funding: “The resources are there. We need to make sure they get to where they are needed most.” Budget experts still see untapped treasures for clean industries in the expiring Recovery and Resilience Fund and in the next EU budget from 2028 through the use of the huge cohesion and structural funds.
German government crisis unsettles hydrogen companies
The association also sees a brake on the development of the hydrogen economy in the recurring doubts about the expiry of the free allocation of certificates in emissions trading. The largest consumers of hydrogen, of all things, are currently still receiving free emission allowances; this practice is set to end in 2034 with the introduction of the CBAM – provided the EU sticks to its decisions.
However, the analysis service BNEF also recognizes regulatory uncertainties in the USA. The tax credits from the IRA have still not been implemented, said analyst Martin Tengler. Joachim Lind Koefoed from Copenhagen Infrastructure Partners described the current government crisis in Germany as a major uncertainty factor, especially for hydrogen companies: “All of us have projects in Germany, with German involvement or are dependent on suppliers from there. Will the new government pursue a different policy?” he said, addressing the participants.
‘PPAs can be very expensive’
On the cost side, BNEF cites not only the sluggish expansion of renewables and general inflation as hurdles but also grid fees and the cost of long-term power purchase agreements. “PPAs can be very expensive,” says Tengler about the supposed silver bullet to cheap green electricity.
According to Tengler, one reason for the recent rejections is a lack of experience: “Developers and analysts are beginning to understand that projects consist of more than just electrolysis stacks and liquefaction technology.” Transformers, cables, compressors and other scarce components also have to be procured and paid for.
However, the BNEF expert also sees reason for hope. Costs could fall by half by 2050 and the EU targets for green hydrogen for 2030 are still achievable – even if companies in Western Europe will probably have to overcompensate for sluggish demand from the East. Companies from the EU currently account for half of all binding purchase agreements for green hydrogen worldwide.
Translation missing.
News
Várhelyi: MEPs continue discussions
The coordinators of the Environment and Agriculture Committee have not reached an agreement on the Commissioner-designate for Health and Animal Welfare, Olivér Várhelyi (PE). MEPs now want to decide on Wednesday if possible.
After his hearing last Wednesday, the Hungarian had to answer further questions, discussed by the coordinators on Monday. The S&D rejects Várhelyi’s current portfolio. According to Table.Briefings, the Social Democrats were dissatisfied with his answers on abortion and vaccines from Russia and China. In their opinion, he is also too much on the side of the pharmaceutical industry.
Animal health hotly disputed
According to the group, the changes to Várhelyi’s portfolio must be substantial. However, some in Parliament are critical of the proposal to hand over responsibility for animal health to the designated Agriculture Commissioner Christophe Hansen (EPP). The issue of antibiotic resistance, for example, should remain in the hands of health politicians.
The Social Democrats do not want to be put off by fears that Hungary’s Prime Minister Viktor Orbán could delay the new Commission taking office. Orbán cannot delay a possible subsequent nomination forever, according to the parliamentary group. Legally, it is even possible for a member state not to receive a commissioner post. ber
European Parliament: demands on steel and industrial policy
MEPs have formulated their industrial policy positions ahead of the final hearings of the future Commissioners today, Tuesday. A cross-party group led by SPD MEP Jens Geier submitted its recommendations for the steel sector to Commissioner-designate for Industry Stéphane Séjourné on Friday evening.
They include calls for lead markets for green steel and the use of trade defense instruments. The paper was signed by dozens of MEPs from the S&D and EPP as well as Green MEPs Terry Reintke and Michael Bloss and Renew politician Marie-Pierre Vedrenne.
Bloss also published a paper on Monday with “Five steps for a sustainable industry.” Among other things, the Green politician calls for the approval of cross-border electricity grid connections to be transferred to a new European coordination authority and for a Buy European Act for funding instruments and in procurement. ber
Critical raw materials: BDI demands more speed
The Federation of German Industries (BDI) called for a faster pace for raw materials policy at its Raw Materials Congress in Berlin on Monday. “Germany must finally invest more in its raw materials security,” said BDI President Siegfried Russwurm. “The dangers and risks are obvious. But the pace of reaction is far too slow.”
Parliamentary State Secretary Franziska Brantner, who had stepped in for Federal Economics Minister Habeck, did try to spread confidence. For example, by pointing to a significantly reduced dependence on raw materials from Russia or the recently launched raw materials fund. However, €1 billion – the size of the fund – is not a lot of money for raw materials projects. And Brantner also warned: “Compared to two years ago, we are not less dependent on China, but more.”
Study: 115 billion damage without imports from China
In a new publication, the BDI and management consultants Roland Berger point out the dangers of focusing too much on China. It states that Germany will have imported half of its lithium products from China by 2024. The study calculates an extreme scenario: If these imports were to cease immediately, it would cost Germany up to €115 billion in added value. This corresponds to around 3 percent of gross domestic product – a similar impact to the coronavirus pandemic.
Such a scenario could occur, for example, if China were to attack Taiwan. It would also be possible for the People’s Republic to use its quasi-monopoly on lithium as a lever of power – it has already done so with other raw materials in the past. “Politicians must do everything they can to prevent such a worst-case scenario,” said Russwurm.
BDI: 40 projects needed to achieve CRMA targets
The BDI President praised the German government’s key issues paper on the supply of raw materials and the EU’s Critical Raw Materials Act (CRMA). However, he also warned: “If we want to achieve the CRMA targets by 2030, at least 10 new mines, 15 processing plants and 15 large recycling plants must be built in Europe. That is very ambitious.”
170 project applications were received by the EU Commission during the first tender round up to the end of August. In March, the Commission intends to nominate the “strategic raw materials projects” provided for in the CRMA, which will then receive the status of overriding public interest and will be treated as a priority by the responsible authorities. It is not yet clear how many projects the Commission will select.
One of the applicants is the British company Anglo American with the Sakkati mining project for copper, nickel and other raw materials in Finland. 13 applications come from Germany.
Logistical problems complicate partnerships
The BDI is calling for the exploitation of the potential of domestic raw material deposits. According to the new study, Germany could cover 12 percent of its lithium requirements with its own resources. Russwurm mentions in particular the deposits in the Ore Mountains and the Upper Rhine Graben. “There are no safer sources of raw materials than those in our own country.” However, this requires above all more social acceptance, the importance of raw materials must “get into people’s heads.”
The study also concludes that international raw materials partnerships should be strengthened. Toralf Haag, the new CEO of copper group Aurubis, cites the sometimes inadequate financing as an obstacle to their success. He also emphasizes logistical problems: raw materials from partner countries such as Kazakhstan have to be transported to Germany by train and ship, which is very cumbersome.
The third field of action for the BDI is the circular economy. According to the authors of the study, Germany is still the global market leader in this area. Franziska Brantner also says: “The circular economy should be a priority for the next government.” leo
- China
- Critical Raw Materials Act
- CRMA
- Kreislaufwirtschaft
- Lithium
- Raw materials strategy
- Rohstoffstrategie
COP29: CBAM almost causes agenda dispute
The EU has prevailed: Climate action measures that impact trade will not be on the agenda at this year’s UN Climate Change Conference in Baku (COP29). China came to COP29 with the demand to discuss so-called “unilateral trade measures” in the negotiations. The EU’s Carbon Border Adjustment Mechanism (CBAM) is a particular thorn in Beijing’s side. Brazil, South Africa and India supported the motion.
Europe considers the climate negotiations to be the wrong place and believes the dispute is better handled at the World Trade Organization. The EU has thus managed to ensure that the issue is not included on the agenda. Instead, the Azerbaijani COP presidency wants to include issues like CBAM and the IRA in its “consultations” with the various states. China was satisfied with the decision.
Developing countries fear Trump will create new trade barriers
This compromise means that although the issue is not off the table, it does not play a role in the official negotiating rooms. However, the risk of another dispute erupting in Baku has not been averted, as developing countries fear that Trump’s re-election will lead to further trade barriers.
Clashes over the agenda at UN climate conferences are not uncommon, and CBAM has long been a source of disagreement. China sees climate action instruments such as CBAM, IRA or the EU’s anti-deforestation law as a violation of the Framework Convention on Climate Change, as Beijing believes they promote protectionism and discrimination against developing countries. luk
Seven proposals for AI factories
As part of the EuroHPC Joint Undertaking (JU), the European Commission has received seven proposals for the establishment of AI factories. The AI factories are intended to strengthen Europe’s leading role in the field of trustworthy artificial intelligence. A total of 15 EU member states and two associated participating states submitted their proposals.
The EuroHPC JU, a public-private partnership between the EU, participating European states and industry partners, is building a high-performance computing (HPC) ecosystem in Europe and providing access to world-class supercomputers and quantum computers.
With the planned AI factories, the Commission aims to create a European ecosystem that develops advanced AI models and promotes AI solutions. The AI factories will use the EU’s high-performance computers and combine computing power, data and specialist staff to significantly increase the computing power available for AI in Europe. These resources will be available to European start-ups, industry and research.
Proposal also from Germany
The seven proposals submitted came from:
- Finland (together with the Czech Republic, Denmark, Estonia, Norway and Poland)
- Luxembourg
- Sweden
- Germany
- Italy (in cooperation with Austria and Slovenia)
- Greece
Spain is planning a proposal with Portugal, Romania and Turkey, which is expected shortly.
An independent panel of experts will evaluate the proposals and announce the selection of the first AI factories in December. Shortly afterwards, the EuroHPC JU will start implementation. Cyprus and Slovenia have also expressed interest in joining an existing AI factory or creating a new one at a later date. The next deadline for further proposals is February 1, 2025. vis
- Künstliche Intelligenz-Verordnung
Controversial government alliance in Lithuania
In Lithuania, the Social Democrats have agreed on a controversial government alliance a good two weeks after the parliamentary elections. Following their election victory, they want to govern with the Democratic Union for Lithuania and the newly founded populist party Dawn of Nemunas, whose chairman is on trial for alleged anti-Semitic comments.
The three parties signed a coalition agreement in Vilnius, which also defines the distribution of the most important posts and ministerial portfolios in the Baltic country. Together, the three-party alliance has 86 of the 141 seats in parliament.
However, President Gitanas Nausėda had announced he would not appoint any members of Nemunas’ Dawn party as ministers in the next government. In Lithuania, ministers are appointed and dismissed by the president at the suggestion of the head of government. It could be that the party will now nominate technocrats for the ministerial posts intended for them.
Party leader Žemaitaitis loses mandate as member of parliament
The participation of Nemunas’ Dawn in government – contrary to announcements made by the Social Democrats before the election – caused criticism and outrage in Lithuania and internationally. The protest party, which came third in the vote in October, combines left-wing positions with a right-wing populist program.
The main concerns are directed at party leader Remigijus Žemaitaitis, who has attracted attention on several occasions for making anti-Semitic statements. As a result, the 42-year-old lost his seat as a member of parliament in the spring.
A rally against the inclusion of Nemunas’ Dawn Party in the government is planned before the constituent session of parliament on Thursday. There had also been criticism from representatives of Israel, the US and Germany. “An alliance with an anti-Semitic party is incompatible with our values,” wrote the SPD foreign policy expert and chairman of the German Bundestag’s Foreign Affairs Committee, Michael Roth, on X.
Žemaitaitis, who is not slated for a government post, affirmed in a letter to the ambassadors of the EU and NATO countries as well as Israel that he does not hold any anti-Semitic views. dpa
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Dessert
Brussels’ nerds: Parliament cuts its own teeth at the hearings
Anyone who wanted to follow the hearings for the Commission candidates last week needed stamina and plenty of caffeine. For three hours each, the Commissioners-designate practiced repeating the same content of the mission letters they had received from the Commission President.
Some Commissioners-designate thankfully spiced up their answers with examples and anecdotes. However, the listeners mostly looked in vain for concrete commitments or political statements that went beyond von der Leyen’s specifications.
From the perspective of the Commission candidates, this is a clever tactic. For them, it makes no sense to give Parliament more than is absolutely necessary. The question is rather what Parliament wants to achieve.
Brief spotlight for the MPs
Most MPs pack three, four, sometimes five questions into their first round of questions. The candidate then has two minutes to answer. The more questions they are asked, the better they can choose which question they actually want to answer. Those MPs who are allowed to ask one more question usually use their extra time to ask even more questions instead of insisting on an unsatisfactory part of the answer and demanding more details.
As a result, instead of behaving like a respectable body of examiners, Parliament behaves like a bunch of nerds who want to show the Commissioner what clever questions they have come up with
Parliament itself is partly to blame: It has agreed on a hearing mode in which as many MEPs as possible are allowed to appear briefly in the spotlight of the hearing cameras. A mode in which fewer MPs have more time and are allowed to ask more questions would undoubtedly be more effective. They should also have the right to cut off the future Commissioner if he does not give a concrete answer and lets time pass with vague formulations.
However, this would presuppose that Parliament actually has an interest in more effective hearings. This is doubtful. So far, the performance of the Commissioner candidates has hardly been decisive for the parliamentarians.
Tame hearings are useless at best
Commissioners-designate who performed poorly in the hearing, for example Marta Kos and Jessika Roswall, were nevertheless confirmed because MEPs did not want to risk retribution against their own party’s Commission candidates. The actual shaky candidates are Olivér Várhelyi, who showed a commanding performance in the hearing, and Raffaele Fitto and Teresa Ribera, whose hearings are still pending.
An exceptionally good or bad performance during the hearing would probably not be without consequences for Fitto and Ribera, but the hearings are of secondary importance. Above all, there is a power struggle between the political groups to influence the European coalition of the coming years in their favor.
Power struggles between different political camps are inevitable. However, it is questionable whether the hearings are necessary for this. It looks like an attempt to add an element of US political entertainment to the consensus-oriented EU policy system in order to make EU politics more entertaining. In its current form, however, it threatens to have the opposite effect. Tame hearings, the results of which are not incorporated into the composition of a future Commission, are at best useless. At worst, they will lead to further alienation between the EU and its citizens. János Allenbach-Ammann
Europe.table editorial team
EUROPE.TABLE EDITORIAL OFFICE
