Asylum pact + Pieper case + New seating arrangements

Dear reader,

The EU finance ministers are meeting today for the monthly Eurogroup and ECOFIN meeting in Luxembourg. This means that those ministers who want to make the trip to Luxembourg are meeting. French Finance Minister Bruno Le Maire and Dutch Minister Steven van Weyenberg, for example, are skipping the meeting.

Now that the EU finance ministers have handed in their homework in the form of a work plan for the Capital Markets Union to their bosses in March, they can breathe a sigh of relief – until the heads of government formulate new goals for the creation of the Capital Markets Union at the EU summit next week. The finance ministers will then have to make rapid progress if the ambitions in the draft summit conclusions are actually to be implemented.

Eurogroup President Paschal Donohoe can also breathe a sigh of relief for the time being. Ever since Irish Prime Minister Leo Varadkar resigned unexpectedly in March, his continuation in the Irish government was considered uncertain. Yesterday, however, he was confirmed in the new cabinet under Simon Harris.

Instead of discussing the Capital Markets Union, the finance ministers, or their deputies, will talk about the digital euro project for the first time in over six months. On Friday at breakfast, they will then discuss the strategy of the European Investment Bank in a confidential round.

The new EIB President Nadia Calviño will specify her plans there and at the same time be confronted with far-reaching wishes from the finance ministers, particularly with regard to financing in the defense sector. Berlin also expects the EU development bank to be more open to financing in the dual-use sector, but warns against exaggerated expectations. The question of whether the framework for the EIB’s debt (gearing ratio) should be increased in order to give the bank more leeway for financing without a capital increase is also likely to give rise to discussions.

Enjoy your day!

Your
János Allenbach-Ammann

EU Parliament launches migration package

By

Eric Bonse

After eight years of unusually difficult deliberations, the European Parliament adopted the Pact on Migration and Asylum in Brussels on Wednesday. The so-called GEAS reform, which consists of ten regulations, is intended to limit irregular immigration into the EU and distribute the burden more fairly among the member states.

Federal Minister of the Interior Nancy Faeser (SPD) called the decision a “major and very important success”. Chancellor Olaf Scholz (SPD) spoke of a “historic, indispensable step”. The refugee organization Pro Asyl, on the other hand, called the result “a historic low point for refugee protection in Europe”.

Green MEPs voted against

The central regulation on asylum and migration management received 322 votes in favor, with 266 against and 31 abstentions. Other regulations received fewer votes. Contrary to fears, however, none failed. The German Greens in Parliament opposed the reform and thus also the current government and its own ministers in Berlin.

At the heart of the package are the new border procedures. In the future, migrants who are not entitled to asylum are to be detained near the EU’s external borders and deported directly from there. Contrary to Foreign Minister Annalena Baerbock’s (Greens) demands, families with children will also go through these procedures. However, they are to be treated with consideration.

30,000 migrants to be redistributed

The crisis regulation brings a further tightening. If a particularly large number of people arrive in the EU, they can be detained for up to 18 weeks instead of the normal maximum of twelve weeks. If the EU believes that the migrants are being “instrumentalized” (e.g. by Turkey or Russia), they must be sent to the camp immediately. At least there will be legal aid and the possibility to appeal.

The EU is also planning a new solidarity mechanism. It wants to redistribute at least 30,000 migrants from Italy or Greece to the EU every year. Those who do not want to take in people can buy their way out with a payment of €20,000 per person.

‘Prove your ability to act now’

However, Hungary and Poland reject this. Both countries had already distanced themselves from the CEAS reform during the negotiations. Nevertheless, it is now to be adopted by the Council as the final step in the legislative process. If everything goes smoothly, the package could come into force in mid-2026 – long after the European elections.

Nevertheless, the EU Parliament’s decision is seen as an important signal ahead of the elections in June. “It is up to Europe to prove its ability to act now”, Baerbock appealed to MEPs before the final vote. The EU must show that it has answers to the migration and asylum crisis.

Topic in the election campaign

This is due to concerns about a shift to the right in the European elections. All polls and forecasts point to the AfD and other right-wing populist and nationalist parties gaining votes. In France, the nationalists could even become the strongest party. They are mobilizing voters primarily with the migration crisis and the fear of “foreign infiltration” and “asylum abuse”.

However, this is unlikely to change even after the reform. The AfD considers it to be completely inadequate. “The migration pact will not stop mass immigration to Europe, because everyone who makes it to an external EU border will still receive an asylum procedure”, explained AfD MEP Nicolaus Fest. Illegal migration should be controlled in the future, according to Fest. “But we don’t want to control illegal migration, we want to end it.”

‘New solidarity among member states a great success’

Politicians involved in the negotiations on the CEAS reform argue completely differently. “With this agreement, we are also achieving a triumph of European values over political stagnation and boycott”, explained Lena Düpont (CDU), spokesperson for home affairs in the CDU/CSU group. The vote was “historic” and a “milestone” for a common European asylum system.

Birgit Sippel (SPD) sounds less satisfied. “Until the very end, we campaigned against the risk of disproportionate detention in border procedures. However, due to the member states’ unwillingness to compromise, we were unable to get our way. However, we did manage to push through a mandatory solidarity mechanism.”

“The votes against are more than surprising”, explained Jan-Christoph Oetjen, the FDP’s spokesperson on migration policy. “Not changing anything is simply not an option. We need a European approach.” That is why the new solidarity among the member states is a great success. “Anyone who doesn’t want to understand that is denying reality.”

Criticism of agreements with third countries

However, it remains to be seen how far the European approach will go. Hungary and Poland have announced that they do not intend to implement the solidarity mechanism. Italy wants to outsource some of the asylum procedures to Albania. In addition, the EU Commission has already concluded agreements with authoritarian third countries such as Tunisia, Egypt and Mauritania, which the European Parliament believes contradict the spirit of the new asylum pact.

EU Commission President Ursula von der Leyen sees no problem with this. “The pact strikes the right balance between stricter rules against abuse of the system and caring for the most vulnerable”, she explained after the parliamentary vote. She did not address the criticism of her billion-euro agreements with third countries.

Commissioners’ rebellion in Pieper case fizzles out

The College of the EU Commission discussed the case of Markus Pieper for an hour on Wednesday, but the debate was reportedly less controversial than expected. Industry Commissioner Thierry Breton and Foreign Affairs Commissioner Josep Borrell were the only ones among the Commissioners to express criticism of the appointment and the circumstances surrounding it, according to Commission circles.

Two of the four Commissioners who had criticized the appointment of the Commission’s SME Envoy were not even present: Nicolas Schmit (Social Affairs) and Paolo Gentiloni (Finance) did not attend the meeting due to business trips, it was reported. The four Commissioners had previously sent two letters to President Ursula von der Leyen asking her to put the issues surrounding the selection procedure for the new SME Commissioner and the lack of involvement of the Commissioners on the College’s agenda.

EPP Commissioners defend von der Leyen

Breton and Borrell reportedly received unanimous criticism at the meeting from several Commissioners who, like von der Leyen, belong to the Christian Democrat EPP party family. They defended the decision to appoint Pieper and criticized the fact that internal Commission information had been made public.

The Social Democrat Maroš Šefčovič, Executive Vice-President of the Commission and former Commissioner for Personnel, also complained about the leaks. Social Democrat Elisa Ferreira (Cohesion) is also said to have raised this issue and also asked for the College to be better involved in upcoming personnel matters in advance.

No backing for Breton

According to the circles, Breton did not receive any support from other commissioners of the liberal party family. Breton is said to have denied the accusation of leaking internal information. He had only made the lack of involvement of the commissioners in the decision clear in college.

The responsible Budget Commissioner Johannes Hahn and Breton are still negotiating the Commission’s reply to the group of MEPs from several political groups who had criticized the appeal to the Commission. The Pieper case was also discussed in the European Parliament on Wednesday evening. On Thursday, the plenary will vote on a reprimand of the Commission in the Pieper case. It is expected that the motion will receive a broad majority. The reprimand would have no legal consequences.

However, there will be no change in personnel. MEP Pieper (CDU) will join the Commission as SME Commissioner on April 16. tho/mgr

New seat distribution in European Parliament

In the next parliamentary term, MEPs will no longer have fixed seats. Instead, they will be required to occupy the first rows in the plenary. This regulation is part of the reform of the European Parliament’s Rules of Procedure under the title “Parliament 2024“, which was adopted in plenary on Wednesday.

This will implement the results of the working group set up by Parliament President Roberta Metsola under the leadership of Vice-President Rainer Wieland at the beginning of 2023. The reform is intended to ensure that the European Parliament becomes more effective. For example, an ad hoc committee is to be formed as soon as a legislative procedure falls within the remit of more than three committees. In addition, disputes over competence between committees are to be resolved more quickly with new rules. The hearings of candidates for the Commission in the European Parliament will also be reorganized. If, for example, a candidate is heard by two or more committees, the evaluation meetings are to be held jointly. mgr

EU climate target 2040: reindustrialization could cover costs

A reindustrialized Europe could create 1.6 million jobs in net-zero industries by 2030 and a total of two million jobs by 2040, according to a study published today by the Brussels-based think tank Strategic Perspectives. The authors call on the EU member states to draw up a European industrial strategy in their roadmap for the next five years.

The so-called Strategic Agenda of the EU member states is one of the most important topics of discussion at the special summit of the European Council next week. It is to be adopted at the next regular EU summit at the end of June. Initial drafts show that the focus of the Strategic Agenda 2024-2029 is on competitiveness and industrialization.

In addition to new jobs, a new industrial strategy has the potential, according to the authors, to:

Increase energy security by saving €856 billion on gas, oil and coal imports between 2025 and 2040;
Reduce the cost of living for households by cutting energy bills by two-thirds by 2035;
Save on technology and material imports amounting to at least €133 billion;
Create €233 billion for new economic activity in industrial sectors and increase the productivity of the economy.

2040 climate target costs €668 billion

The investments required to achieve a CO2 reduction target of 90 percent by 2040 – around €668 billion – would therefore be “far outweighed by the major benefits for the European economy”, according to the study. “Deindustrialization is not an inevitable fate for Europe”, emphasizes Neil Makaroff, Director of Strategic Perspectives. Europe could go from being a green consumer to a green producer. “However, if we postpone the transition now, we risk losing green jobs and investment to China and the US”, says Makaroff.

Strategic Perspectives is not the only think tank calling for industrial policy to be linked to a Green Deal 2.0. The climate think tank E3G criticizes the fact that Europe’s response to investment plans from the USA and China has so far had little effect. It is therefore calling for faster industrial policy decisions in order to better bundle private and public investment. This also applies to an ambitious EU climate target by 2040. luk

EU Parliament gives green light for methane regulation

MEPs adopted the new regulation on methane in the energy sector with 530 votes in favor, 63 against and 28 abstentions. The agreement aims to ban the venting of methane and severely restrict flaring.

In the future, leaks in pipelines and leaking valves must be detected and repaired, said co-rapporteur Jutta Paulus (Greens). Methane emissions in the energy sector could be stopped in a cost-neutral way with the simplest of means, “but as is so often the case, a law is needed before action can finally be taken”.

However, the most important point of the agreement remains the gradual extension of the new methane regulation to imports of fossil fuels, according to Paulus. “Around 80 percent of the associated emissions are generated outside the EU. This makes the EU Methane Regulation an important building block for achieving the EU climate target and the Global Methane Pledge”, she said.

The regulation stipulates that, from 2025, importers must collect data on methane emissions and evidence of whether and how non-EU countries and producers are reducing their emissions. In 2026, the Commission will publish a database in which the emissions of foreign producers and the legal measures to combat leakage in the exporting countries will be disclosed. From 2027, it will be mandatory for importers to comply with the same rules on monitoring, reporting and verification of leaks as European producers. cst

CO2 fleet limits for trucks: Parliament confirms political agreement

The European Parliament adopted the political agreement on CO2 fleet limits for heavy commercial vehicles on Wednesday. There will be no end to combustion engines for commercial vehicles. CO2 emissions are to be reduced by 45 percent by 2030, 65 percent by 2035 and 90 percent by 2040. There are also regulations for the CO2 emissions of trailers and semi-trailers. The attempt to reopen the compromise for climate-neutral fuels was rejected. Before the vote, the Commission promised to present a proposal for the operation of commercial vehicles with climate-neutral fuels in the near future. mgr

Researchers urge reform of EU innovation policy

A group of renowned economists has criticized the EU’s innovation policy and is calling for reforms. “The EU is losing the race for innovation and thus economic prosperity as well as regulatory and geopolitical influence”, said Nobel Prize winner Jean Tirole from the Toulouse School of Economics. Their complete absence in the group of the top 20 tech companies and the top 20 start-ups is threatening. The EU spends too little on research and development and concentrates on “mid-tech sectors” such as the automotive industry.

To reverse the current trend, the EU should invest much more in “breakthrough innovations” and support high-tech projects with low technological maturity, the researchers recommend. According to Tirole, the EU should also reduce political control over scientific decisions, involve more leading scientists and give them more discretion and flexibility.

According to the authors, including Ifo Chairman Clemens Fuest, the European Innovation Council (EIC) should be restructured along the lines of the American ARPA agencies and more scientists and fewer civil servants should sit on the committees. Compared to the USA, the application and selection procedures in the EU are extremely bureaucratic. rtr

Germany is the European champion for subsidies

The state aid floodgates have been open in the EU since 2022. The European Commission’s newly published “State Aid Scoreboard” now shows that Germany paid out more state aid to its companies in 2022 than any other member state.

If state aid from the normal regime, that from the facilitated temporary Covid regime and that from the temporary crisis framework (TCF) are added together, the German government spent €73.67 billion on aid in 2022. This corresponds to 32.9 percent of aid disbursed across the EU. France is in second place with €44.79 billion, ahead of Italy.

Germany is also well ahead in the subsidy rankings relative to its economic strength. Only Hungary spent more money on state aid in relation to its economic strength in 2022.

Tensions between small and large member states

The statistics are likely to confirm the fears of smaller states that see themselves at a disadvantage in an intra-European subsidy race. Only recently, a group of small and medium-sized member states therefore called for an end to the relaxed subsidy framework, which currently applies until the end of 2025.

At the beginning of this week, however, the economic ministers of the three largest economies were less than impressed by these complaints. In a joint list of demands, Robert Habeck, Bruno Le Maire and Adolfo Urso argued for an extension of the relaxed regime. The issue is also likely to be discussed at the EU summit next week when Enrico Letta presents his report on the future of the single market. jaa

EU imposes high anti-dumping duties on flame retardants

The EU has imposed provisional anti-dumping duties on certain alkyl phosphate esters from China. According to the Brussels authority, the phosphate compositions affected are mainly used as flame retardants in rigid and flexible foam. The provisional anti-dumping duties are remarkably high: They range from 45.1 percent to 68.4 percent. The decision was preceded by an investigation into the imports. The EU investigators will continue the investigation to determine whether the duties will then become permanent in five years’ time.

The EU Commission also published an updated report on state-induced distortions in the Chinese economy on Wednesday. The 700-page paper is intended as a guide for EU industry to facilitate complaints about dumping practices.

So far, such a guide only exists for China. The original version dates back to 2017, but the new version has been expanded to include sectors such as the chip and cleantech industries and electric vehicles. The EU Commission initiates an average of ten anti-dumping investigations per year, so far mainly in the steel and aluminum sectors. ari

Lena Schilling – from Fridays for Future into politics

Lena Schilling will move to the EU Parliament for the Austrian Green Party – if she gets enough votes.

Lena Schilling’s path is special in many ways: From activism to party politics, at the age of 23, she became a top candidate for the European elections – skipping the regional and national political levels in the process. In June, she heads the list of the Austrian Green Party for the European elections. It is her first party political position, having previously gained national prominence through her work for Fridays for Future.

Her mother influenced her political stance

Lena Schilling says that her mother had a particular political influence on her. The trained social worker took over the management of a refugee shelter when Schilling was 15 years old. Schilling says she was there almost every day. In her interactions with the refugees, her mother “showed her early on what justice means and gave her an idea of what is important for good coexistence.”

In the following years, Schilling focused her political efforts on climate activism. “As if by chance,” she became involved in Austria’s Fridays for Future movement as a student at the end of 2018, when she sat at a table with the initiators, who were still looking for supporters. She made her first public appearance during the global climate strike in March 2019. She has not left the media spotlight since and became the figurehead of Austrian climate activism.

Occupation of the Lobau Tunnel

She founded a youth council to give young people a voice outside the climate protests. “A movement like this is extremely cool, but not everyone can take to the streets every Friday,” says Schilling, explaining her decision. Lena Schilling then drew attention by occupying the controversial Lobau Tunnel in Vienna. “Without a concrete plan,” she sat on an excavator with a poster and announced the occupation, which she “then went through with.” What followed was a months-long struggle. In the end, the decision was made: The plans to build the tunnel were scrapped. Leonore Gewessler, the Green Party Minister for Climate Action, announced the decision.

This time can also be seen as Schilling’s first rapprochement with the Green Party. The question remains as to why Schilling is now running for the party, of which she said in 2023 that “the people who are active in Fridays for Future would never join the Greens.” The 23-year-old has a pragmatic view on this: “Even during my time with Fridays for Future, I realized that I’m prepared to pull out all the stops to achieve the goals,” she says.

She asked herself several times whether she was ready for such a position of responsibility. In the end, the decision was positive, partly because the EU level gave her the opportunity to tackle climate policy issues across national borders. At the same time, she rejected advances from the Social Democratic Party (SPÖ) and the Communist Party of Austria (KPÖ). “The only party that credibly stands for climate action is the Greens,” said Schilling.

More climate policy, of course – but what else?

In conversation, it quickly becomes clear that she also wants to place a clear focus on climate policy in Parliament. She attaches particular importance to mobility. As a first step, she wants to fight for the expansion and standardization of European rail transport. The climate ticket in Austria as an annual pass for public transport could serve as a model. At the same time, the EU institutions should soon start restricting private jets through bans or higher taxes. Schilling says that this is “the only criticism of consumption that you will ever hear from me,” but the question of who is largely responsible for climate emissions urgently needs to be asked.

But how does Lena Schilling plan to prove her expertise in other areas such as security or the economy – also to avoid losing to her male and, in some cases, much more experienced rivals in the election campaign? She relies on joint efforts. She does not claim to have the right gut feeling and to know everything about every issue. “The good thing is that there are experts for all issues who have been dealing with these topics for decades,” says Schilling. She also wants to incorporate social discourse into her policy to a particular extent. Specifically, this means: “What is communicated on the street should also be heard in parliament.”

Young woman in the EU election campaign

In general, she hopes to be able to set different priorities than her competitors – especially because of her gender and age. “I want to reach different people than most top candidates,” she says. She believes it is entirely possible that her lack of experience could be used against her. “We’re in an election campaign, of course there are people there who are waiting for every mistake you make.” She recently made one of these when she could not clearly identify Norway as a non-EU member in an interview. Outwardly, she reacts confidently to the negative reactions. For a 23-year-old, that is not a matter of course. Jasper Bennink

EUROPE.TABLE EDITORIAL OFFICE

Till
Hoppe

Sarah
Schaefer

Lukas
Knigge

Corinna
Visser

Markus
Grabitz

Alina
Leimbach

Eric
Bonse

Manuel
Berkel

Stephan
Israel

Claire
Stam

János
Allenbach-Ammann

Dear reader,

The EU finance ministers are meeting today for the monthly Eurogroup and ECOFIN meeting in Luxembourg. This means that those ministers who want to make the trip to Luxembourg are meeting. French Finance Minister Bruno Le Maire and Dutch Minister Steven van Weyenberg, for example, are skipping the meeting.

Now that the EU finance ministers have handed in their homework in the form of a work plan for the Capital Markets Union to their bosses in March, they can breathe a sigh of relief – until the heads of government formulate new goals for the creation of the Capital Markets Union at the EU summit next week. The finance ministers will then have to make rapid progress if the ambitions in the draft summit conclusions are actually to be implemented.

Eurogroup President Paschal Donohoe can also breathe a sigh of relief for the time being. Ever since Irish Prime Minister Leo Varadkar resigned unexpectedly in March, his continuation in the Irish government was considered uncertain. Yesterday, however, he was confirmed in the new cabinet under Simon Harris.

Instead of discussing the Capital Markets Union, the finance ministers, or their deputies, will talk about the digital euro project for the first time in over six months. On Friday at breakfast, they will then discuss the strategy of the European Investment Bank in a confidential round.

The new EIB President Nadia Calviño will specify her plans there and at the same time be confronted with far-reaching wishes from the finance ministers, particularly with regard to financing in the defense sector. Berlin also expects the EU development bank to be more open to financing in the dual-use sector, but warns against exaggerated expectations. The question of whether the framework for the EIB’s debt (gearing ratio) should be increased in order to give the bank more leeway for financing without a capital increase is also likely to give rise to discussions.

Enjoy your day!

Your
János Allenbach-Ammann

EU Parliament launches migration package

By

Eric Bonse

After eight years of unusually difficult deliberations, the European Parliament adopted the Pact on Migration and Asylum in Brussels on Wednesday. The so-called GEAS reform, which consists of ten regulations, is intended to limit irregular immigration into the EU and distribute the burden more fairly among the member states.

Federal Minister of the Interior Nancy Faeser (SPD) called the decision a “major and very important success”. Chancellor Olaf Scholz (SPD) spoke of a “historic, indispensable step”. The refugee organization Pro Asyl, on the other hand, called the result “a historic low point for refugee protection in Europe”.

Green MEPs voted against

The central regulation on asylum and migration management received 322 votes in favor, with 266 against and 31 abstentions. Other regulations received fewer votes. Contrary to fears, however, none failed. The German Greens in Parliament opposed the reform and thus also the current government and its own ministers in Berlin.

At the heart of the package are the new border procedures. In the future, migrants who are not entitled to asylum are to be detained near the EU’s external borders and deported directly from there. Contrary to Foreign Minister Annalena Baerbock’s (Greens) demands, families with children will also go through these procedures. However, they are to be treated with consideration.

30,000 migrants to be redistributed

The crisis regulation brings a further tightening. If a particularly large number of people arrive in the EU, they can be detained for up to 18 weeks instead of the normal maximum of twelve weeks. If the EU believes that the migrants are being “instrumentalized” (e.g. by Turkey or Russia), they must be sent to the camp immediately. At least there will be legal aid and the possibility to appeal.

The EU is also planning a new solidarity mechanism. It wants to redistribute at least 30,000 migrants from Italy or Greece to the EU every year. Those who do not want to take in people can buy their way out with a payment of €20,000 per person.

‘Prove your ability to act now’

However, Hungary and Poland reject this. Both countries had already distanced themselves from the CEAS reform during the negotiations. Nevertheless, it is now to be adopted by the Council as the final step in the legislative process. If everything goes smoothly, the package could come into force in mid-2026 – long after the European elections.

Nevertheless, the EU Parliament’s decision is seen as an important signal ahead of the elections in June. “It is up to Europe to prove its ability to act now”, Baerbock appealed to MEPs before the final vote. The EU must show that it has answers to the migration and asylum crisis.

Topic in the election campaign

This is due to concerns about a shift to the right in the European elections. All polls and forecasts point to the AfD and other right-wing populist and nationalist parties gaining votes. In France, the nationalists could even become the strongest party. They are mobilizing voters primarily with the migration crisis and the fear of “foreign infiltration” and “asylum abuse”.

However, this is unlikely to change even after the reform. The AfD considers it to be completely inadequate. “The migration pact will not stop mass immigration to Europe, because everyone who makes it to an external EU border will still receive an asylum procedure”, explained AfD MEP Nicolaus Fest. Illegal migration should be controlled in the future, according to Fest. “But we don’t want to control illegal migration, we want to end it.”

‘New solidarity among member states a great success’

Politicians involved in the negotiations on the CEAS reform argue completely differently. “With this agreement, we are also achieving a triumph of European values over political stagnation and boycott”, explained Lena Düpont (CDU), spokesperson for home affairs in the CDU/CSU group. The vote was “historic” and a “milestone” for a common European asylum system.

Birgit Sippel (SPD) sounds less satisfied. “Until the very end, we campaigned against the risk of disproportionate detention in border procedures. However, due to the member states’ unwillingness to compromise, we were unable to get our way. However, we did manage to push through a mandatory solidarity mechanism.”

“The votes against are more than surprising”, explained Jan-Christoph Oetjen, the FDP’s spokesperson on migration policy. “Not changing anything is simply not an option. We need a European approach.” That is why the new solidarity among the member states is a great success. “Anyone who doesn’t want to understand that is denying reality.”

Criticism of agreements with third countries

However, it remains to be seen how far the European approach will go. Hungary and Poland have announced that they do not intend to implement the solidarity mechanism. Italy wants to outsource some of the asylum procedures to Albania. In addition, the EU Commission has already concluded agreements with authoritarian third countries such as Tunisia, Egypt and Mauritania, which the European Parliament believes contradict the spirit of the new asylum pact.

EU Commission President Ursula von der Leyen sees no problem with this. “The pact strikes the right balance between stricter rules against abuse of the system and caring for the most vulnerable”, she explained after the parliamentary vote. She did not address the criticism of her billion-euro agreements with third countries.

Commissioners’ rebellion in Pieper case fizzles out

The College of the EU Commission discussed the case of Markus Pieper for an hour on Wednesday, but the debate was reportedly less controversial than expected. Industry Commissioner Thierry Breton and Foreign Affairs Commissioner Josep Borrell were the only ones among the Commissioners to express criticism of the appointment and the circumstances surrounding it, according to Commission circles.

Two of the four Commissioners who had criticized the appointment of the Commission’s SME Envoy were not even present: Nicolas Schmit (Social Affairs) and Paolo Gentiloni (Finance) did not attend the meeting due to business trips, it was reported. The four Commissioners had previously sent two letters to President Ursula von der Leyen asking her to put the issues surrounding the selection procedure for the new SME Commissioner and the lack of involvement of the Commissioners on the College’s agenda.

EPP Commissioners defend von der Leyen

Breton and Borrell reportedly received unanimous criticism at the meeting from several Commissioners who, like von der Leyen, belong to the Christian Democrat EPP party family. They defended the decision to appoint Pieper and criticized the fact that internal Commission information had been made public.

The Social Democrat Maroš Šefčovič, Executive Vice-President of the Commission and former Commissioner for Personnel, also complained about the leaks. Social Democrat Elisa Ferreira (Cohesion) is also said to have raised this issue and also asked for the College to be better involved in upcoming personnel matters in advance.

No backing for Breton

According to the circles, Breton did not receive any support from other commissioners of the liberal party family. Breton is said to have denied the accusation of leaking internal information. He had only made the lack of involvement of the commissioners in the decision clear in college.

The responsible Budget Commissioner Johannes Hahn and Breton are still negotiating the Commission’s reply to the group of MEPs from several political groups who had criticized the appeal to the Commission. The Pieper case was also discussed in the European Parliament on Wednesday evening. On Thursday, the plenary will vote on a reprimand of the Commission in the Pieper case. It is expected that the motion will receive a broad majority. The reprimand would have no legal consequences.

However, there will be no change in personnel. MEP Pieper (CDU) will join the Commission as SME Commissioner on April 16. tho/mgr

New seat distribution in European Parliament

In the next parliamentary term, MEPs will no longer have fixed seats. Instead, they will be required to occupy the first rows in the plenary. This regulation is part of the reform of the European Parliament’s Rules of Procedure under the title “Parliament 2024“, which was adopted in plenary on Wednesday.

This will implement the results of the working group set up by Parliament President Roberta Metsola under the leadership of Vice-President Rainer Wieland at the beginning of 2023. The reform is intended to ensure that the European Parliament becomes more effective. For example, an ad hoc committee is to be formed as soon as a legislative procedure falls within the remit of more than three committees. In addition, disputes over competence between committees are to be resolved more quickly with new rules. The hearings of candidates for the Commission in the European Parliament will also be reorganized. If, for example, a candidate is heard by two or more committees, the evaluation meetings are to be held jointly. mgr

EU climate target 2040: reindustrialization could cover costs

A reindustrialized Europe could create 1.6 million jobs in net-zero industries by 2030 and a total of two million jobs by 2040, according to a study published today by the Brussels-based think tank Strategic Perspectives. The authors call on the EU member states to draw up a European industrial strategy in their roadmap for the next five years.

The so-called Strategic Agenda of the EU member states is one of the most important topics of discussion at the special summit of the European Council next week. It is to be adopted at the next regular EU summit at the end of June. Initial drafts show that the focus of the Strategic Agenda 2024-2029 is on competitiveness and industrialization.

In addition to new jobs, a new industrial strategy has the potential, according to the authors, to:

Increase energy security by saving €856 billion on gas, oil and coal imports between 2025 and 2040;
Reduce the cost of living for households by cutting energy bills by two-thirds by 2035;
Save on technology and material imports amounting to at least €133 billion;
Create €233 billion for new economic activity in industrial sectors and increase the productivity of the economy.

2040 climate target costs €668 billion

The investments required to achieve a CO2 reduction target of 90 percent by 2040 – around €668 billion – would therefore be “far outweighed by the major benefits for the European economy”, according to the study. “Deindustrialization is not an inevitable fate for Europe”, emphasizes Neil Makaroff, Director of Strategic Perspectives. Europe could go from being a green consumer to a green producer. “However, if we postpone the transition now, we risk losing green jobs and investment to China and the US”, says Makaroff.

Strategic Perspectives is not the only think tank calling for industrial policy to be linked to a Green Deal 2.0. The climate think tank E3G criticizes the fact that Europe’s response to investment plans from the USA and China has so far had little effect. It is therefore calling for faster industrial policy decisions in order to better bundle private and public investment. This also applies to an ambitious EU climate target by 2040. luk

EU Parliament gives green light for methane regulation

MEPs adopted the new regulation on methane in the energy sector with 530 votes in favor, 63 against and 28 abstentions. The agreement aims to ban the venting of methane and severely restrict flaring.

In the future, leaks in pipelines and leaking valves must be detected and repaired, said co-rapporteur Jutta Paulus (Greens). Methane emissions in the energy sector could be stopped in a cost-neutral way with the simplest of means, “but as is so often the case, a law is needed before action can finally be taken”.

However, the most important point of the agreement remains the gradual extension of the new methane regulation to imports of fossil fuels, according to Paulus. “Around 80 percent of the associated emissions are generated outside the EU. This makes the EU Methane Regulation an important building block for achieving the EU climate target and the Global Methane Pledge”, she said.

The regulation stipulates that, from 2025, importers must collect data on methane emissions and evidence of whether and how non-EU countries and producers are reducing their emissions. In 2026, the Commission will publish a database in which the emissions of foreign producers and the legal measures to combat leakage in the exporting countries will be disclosed. From 2027, it will be mandatory for importers to comply with the same rules on monitoring, reporting and verification of leaks as European producers. cst

CO2 fleet limits for trucks: Parliament confirms political agreement

The European Parliament adopted the political agreement on CO2 fleet limits for heavy commercial vehicles on Wednesday. There will be no end to combustion engines for commercial vehicles. CO2 emissions are to be reduced by 45 percent by 2030, 65 percent by 2035 and 90 percent by 2040. There are also regulations for the CO2 emissions of trailers and semi-trailers. The attempt to reopen the compromise for climate-neutral fuels was rejected. Before the vote, the Commission promised to present a proposal for the operation of commercial vehicles with climate-neutral fuels in the near future. mgr

Researchers urge reform of EU innovation policy

A group of renowned economists has criticized the EU’s innovation policy and is calling for reforms. “The EU is losing the race for innovation and thus economic prosperity as well as regulatory and geopolitical influence”, said Nobel Prize winner Jean Tirole from the Toulouse School of Economics. Their complete absence in the group of the top 20 tech companies and the top 20 start-ups is threatening. The EU spends too little on research and development and concentrates on “mid-tech sectors” such as the automotive industry.

To reverse the current trend, the EU should invest much more in “breakthrough innovations” and support high-tech projects with low technological maturity, the researchers recommend. According to Tirole, the EU should also reduce political control over scientific decisions, involve more leading scientists and give them more discretion and flexibility.

According to the authors, including Ifo Chairman Clemens Fuest, the European Innovation Council (EIC) should be restructured along the lines of the American ARPA agencies and more scientists and fewer civil servants should sit on the committees. Compared to the USA, the application and selection procedures in the EU are extremely bureaucratic. rtr

Germany is the European champion for subsidies

The state aid floodgates have been open in the EU since 2022. The European Commission’s newly published “State Aid Scoreboard” now shows that Germany paid out more state aid to its companies in 2022 than any other member state.

If state aid from the normal regime, that from the facilitated temporary Covid regime and that from the temporary crisis framework (TCF) are added together, the German government spent €73.67 billion on aid in 2022. This corresponds to 32.9 percent of aid disbursed across the EU. France is in second place with €44.79 billion, ahead of Italy.

Germany is also well ahead in the subsidy rankings relative to its economic strength. Only Hungary spent more money on state aid in relation to its economic strength in 2022.

Tensions between small and large member states

The statistics are likely to confirm the fears of smaller states that see themselves at a disadvantage in an intra-European subsidy race. Only recently, a group of small and medium-sized member states therefore called for an end to the relaxed subsidy framework, which currently applies until the end of 2025.

At the beginning of this week, however, the economic ministers of the three largest economies were less than impressed by these complaints. In a joint list of demands, Robert Habeck, Bruno Le Maire and Adolfo Urso argued for an extension of the relaxed regime. The issue is also likely to be discussed at the EU summit next week when Enrico Letta presents his report on the future of the single market. jaa

EU imposes high anti-dumping duties on flame retardants

The EU has imposed provisional anti-dumping duties on certain alkyl phosphate esters from China. According to the Brussels authority, the phosphate compositions affected are mainly used as flame retardants in rigid and flexible foam. The provisional anti-dumping duties are remarkably high: They range from 45.1 percent to 68.4 percent. The decision was preceded by an investigation into the imports. The EU investigators will continue the investigation to determine whether the duties will then become permanent in five years’ time.

The EU Commission also published an updated report on state-induced distortions in the Chinese economy on Wednesday. The 700-page paper is intended as a guide for EU industry to facilitate complaints about dumping practices.

So far, such a guide only exists for China. The original version dates back to 2017, but the new version has been expanded to include sectors such as the chip and cleantech industries and electric vehicles. The EU Commission initiates an average of ten anti-dumping investigations per year, so far mainly in the steel and aluminum sectors. ari

Lena Schilling – from Fridays for Future into politics

Lena Schilling’s path is special in many ways: From activism to party politics, at the age of 23, she became a top candidate for the European elections – skipping the regional and national political levels in the process. In June, she heads the list of the Austrian Green Party for the European elections. It is her first party political position, having previously gained national prominence through her work for Fridays for Future.

Her mother influenced her political stance

Lena Schilling says that her mother had a particular political influence on her. The trained social worker took over the management of a refugee shelter when Schilling was 15 years old. Schilling says she was there almost every day. In her interactions with the refugees, her mother “showed her early on what justice means and gave her an idea of what is important for good coexistence.”

In the following years, Schilling focused her political efforts on climate activism. “As if by chance,” she became involved in Austria’s Fridays for Future movement as a student at the end of 2018, when she sat at a table with the initiators, who were still looking for supporters. She made her first public appearance during the global climate strike in March 2019. She has not left the media spotlight since and became the figurehead of Austrian climate activism.

Occupation of the Lobau Tunnel

She founded a youth council to give young people a voice outside the climate protests. “A movement like this is extremely cool, but not everyone can take to the streets every Friday,” says Schilling, explaining her decision. Lena Schilling then drew attention by occupying the controversial Lobau Tunnel in Vienna. “Without a concrete plan,” she sat on an excavator with a poster and announced the occupation, which she “then went through with.” What followed was a months-long struggle. In the end, the decision was made: The plans to build the tunnel were scrapped. Leonore Gewessler, the Green Party Minister for Climate Action, announced the decision.

This time can also be seen as Schilling’s first rapprochement with the Green Party. The question remains as to why Schilling is now running for the party, of which she said in 2023 that “the people who are active in Fridays for Future would never join the Greens.” The 23-year-old has a pragmatic view on this: “Even during my time with Fridays for Future, I realized that I’m prepared to pull out all the stops to achieve the goals,” she says.

She asked herself several times whether she was ready for such a position of responsibility. In the end, the decision was positive, partly because the EU level gave her the opportunity to tackle climate policy issues across national borders. At the same time, she rejected advances from the Social Democratic Party (SPÖ) and the Communist Party of Austria (KPÖ). “The only party that credibly stands for climate action is the Greens,” said Schilling.

More climate policy, of course – but what else?

In conversation, it quickly becomes clear that she also wants to place a clear focus on climate policy in Parliament. She attaches particular importance to mobility. As a first step, she wants to fight for the expansion and standardization of European rail transport. The climate ticket in Austria as an annual pass for public transport could serve as a model. At the same time, the EU institutions should soon start restricting private jets through bans or higher taxes. Schilling says that this is “the only criticism of consumption that you will ever hear from me,” but the question of who is largely responsible for climate emissions urgently needs to be asked.

But how does Lena Schilling plan to prove her expertise in other areas such as security or the economy – also to avoid losing to her male and, in some cases, much more experienced rivals in the election campaign? She relies on joint efforts. She does not claim to have the right gut feeling and to know everything about every issue. “The good thing is that there are experts for all issues who have been dealing with these topics for decades,” says Schilling. She also wants to incorporate social discourse into her policy to a particular extent. Specifically, this means: “What is communicated on the street should also be heard in parliament.”

Young woman in the EU election campaign

In general, she hopes to be able to set different priorities than her competitors – especially because of her gender and age. “I want to reach different people than most top candidates,” she says. She believes it is entirely possible that her lack of experience could be used against her. “We’re in an election campaign, of course there are people there who are waiting for every mistake you make.” She recently made one of these when she could not clearly identify Norway as a non-EU member in an interview. Outwardly, she reacts confidently to the negative reactions. For a 23-year-old, that is not a matter of course. Jasper Bennink

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Feature

EU Parliament launches migration package

Green MEPs voted against

30,000 migrants to be redistributed

‘Prove your ability to act now’

Topic in the election campaign

‘New solidarity among member states a great success’

Criticism of agreements with third countries

Events

News

Commissioners’ rebellion in Pieper case fizzles out

EPP Commissioners defend von der Leyen

No backing for Breton

New seat distribution in European Parliament

EU climate target 2040: reindustrialization could cover costs

2040 climate target costs €668 billion

EU Parliament gives green light for methane regulation

CO2 fleet limits for trucks: Parliament confirms political agreement

Researchers urge reform of EU innovation policy

Germany is the European champion for subsidies

Tensions between small and large member states

EU imposes high anti-dumping duties on flame retardants

Heads

Lena Schilling – from Fridays for Future into politics

Her mother influenced her political stance

Occupation of the Lobau Tunnel

More climate policy, of course – but what else?

Young woman in the EU election campaign

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

Feature

EU Parliament launches migration package

Green MEPs voted against

30,000 migrants to be redistributed

‘Prove your ability to act now’

Topic in the election campaign

‘New solidarity among member states a great success’

Criticism of agreements with third countries

Events

News

Commissioners’ rebellion in Pieper case fizzles out

EPP Commissioners defend von der Leyen

No backing for Breton

New seat distribution in European Parliament

EU climate target 2040: reindustrialization could cover costs

2040 climate target costs €668 billion

EU Parliament gives green light for methane regulation

CO2 fleet limits for trucks: Parliament confirms political agreement

Researchers urge reform of EU innovation policy

Germany is the European champion for subsidies

Tensions between small and large member states

EU imposes high anti-dumping duties on flame retardants

Heads

Lena Schilling – from Fridays for Future into politics

Her mother influenced her political stance

Occupation of the Lobau Tunnel

More climate policy, of course – but what else?

Young woman in the EU election campaign

Europe.Table Editorial Team

EUROPE.TABLE EDITORIAL OFFICE

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