Success for gas network operators + EU budget + AI development

Dear reader,

The European Union has taken a step forward in its goal of creating a Single Market for data. On Monday, the Council followed Parliament’s lead and adopted the Data Act. The law can now enter into force. It is intended to give companies fair access to data in order to uncover the treasures that lie hidden within it.

But the law alone will not get data sharing off the ground. What is also needed is a secure and trustworthy environment in which data can be exchanged. In addition, a (virtual) place where providers and consumers can even find out about the data that is available or needed. Finally, standards are needed to make data exchange efficient. Data spaces provide all of this.

One such data space is the European Industrial Data Space for data from production or the Health Data Space. Tomorrow, Wednesday, the Commission will present another one, the European Mobility Data Space (EMDS). It is intended to form the basis for the controlled exchange and secure use of mobility data throughout Europe.

With the European Mobility Data Space, the Commission wants to accelerate the digital transformation of the European transport sector and make the data usable for the sector and society. The data space is also an important prerequisite for optimizing intermodal transport. It should make the transportation of passengers and goods in Europe safer, more efficient, more accessible, and more sustainable. Hopefully also more reliable.

We wish you a wonderful day and an interesting read.

Your
Corinna Visser

Hydrogen: Gas network operators prevail

By

Manuel Berkel

The hydrogen package has now closed the last major gap in the development of the hydrogen economy. Yesterday evening, an agreement was reached in the trilogue on the Gas Market Directive. After the Commission had already laid the foundations for the production of green gases and e-fuels with the delegated acts on hydrogen, the hydrogen package now regulates the infrastructure – from gas distribution networks to storage facilities and import terminals.

The “horizontal” separation of the operation of natural gas and hydrogen networks was controversial until the very end – a meeting of the permanent representatives last Friday failed to reach an agreement. The owners of the existing network – around a dozen transport companies and hundreds of municipal utilities – wanted to operate hydrogen pipelines in their old structures wherever possible and have a free hand in deciding which natural gas pipelines to convert for hydrogen.

Expert: German government acts against consumer interests

The Commission, on the other hand, wanted at least corporate and accounting unbundling. The Parliament, led by the German rapporteur Jens Geier (SPD), called for the most economical horizontal unbundling possible – supported by the German government in the Council.

The Regulatory Assistance Project (RAP) takes a critical view of this. “Germany is trying to set the agenda in Brussels – and not for the benefit of Europe and not for the benefit of German consumers”, says RAP energy expert Andreas Jahn. If there were no effective unbundling for clean gases, individual “inefficient business models” in the gas industry would be perpetuated.

Separate ‘distribution system for hydrogen’

Following the agreement reached yesterday, the provision on unbundling under company law now only applies to transmission grids. Distribution networks are exempt from regulation, explained Geier after the negotiations. The advantage for the owners is that they can now set up their own “distribution system for hydrogen” and do not have to do anything more than unbundle their accounts. Member states can also exempt transport network operators from unbundling, provided there is a positive cost-benefit assessment.

A passage had already been agreed upon in the technical trilogues that is intended to give “sectors that are difficult to decarbonize” priority in the supply of hydrogen. However, it remains to be seen whether this can really rule out the use of hydrogen for applications that are easy to electrify, such as heating buildings.

Distribution grid operators plan decommissioning and new construction

The package also regulates the planning of hydrogen networks. Previous initial plans all relate to large transportation pipelines. For the first time, the directive also requires distribution network operators to plan every four years. This was of particular concern to the Members of Parliament. They are likely to hope that hydrogen will also reach companies away from large industrial centers more quickly.

MEPs have also pushed through planning for the decommissioning of gas networks. Distribution network operators must develop such plans “if a decline in gas demand is expected that makes it necessary to decommission natural gas distribution networks or parts of these networks”. However, the conversion of natural gas pipelines for hydrogen is expressly possible. In all cases, the basis is formed by local authority heating plans, and public participation is also required. Member states can also exempt operators of gas networks to which fewer than 45,000 customers are connected from the planning process.

Costs for gas phase-out could be passed on to grid fees

Things get tricky in cases where natural gas pipelines are taken out of service before they are written off. This is conceivable if climate targets stand in the way of continued operation or if many customers switch to other heating technologies of their own accord because they have become cheaper. In such cases, the owners will expect to be compensated.

The agreement now obliges the national regulatory authorities to submit guidelines for the depreciation and recalculation of network charges. Compared to the parliamentary report, the agreement grants the regulators fewer rights of intervention. The focus on network charges is new; the parliamentary report spoke more generally of “financial support”. The formal vote on the directive in Parliament’s plenary session is expected in March.

Hydrogen association dispute

The final negotiations on the gas market regulation only began in the evening. These include provisions on permanent joint gas purchasing and a European network of hydrogen network operators (ENNOH) – similar to the associations for gas (ENTSOG) and electricity (ENTSO-E). Among other things, the associations have the task of drawing up ten-year network development plans for the transport networks – which must then be confirmed by the regulatory agency ACER.

Parliament, led by rapporteur Jerzy Buzek (EPP), on the other hand, wanted to leave the planning of the hydrogen network to ENTSOG. However, the Climate Action Network (CAN) stated at the beginning of the year that this would entail the risk of an excessive expansion of hydrogen networks and a lock-in of fossil fuel infrastructure.

Budget: Spanish proposal brings little movement

The Spanish Council Presidency has presented initial proposals on how the increased financial requirements can also be covered by restructuring the EU Multiannual Financial Framework (MFF). The prop o sal contains three options: According to it, funds from other programs amounting to €8.1 billion, €13.1 billion, or €23.1 billion could be reallocated in order to raise additional funds for Ukraine, migration management, or the STEP funding program. The paper from Madrid was presented to the EU ambassadors of the member states on Thursday and is available to “Contexte”.

From the point of view of the German government and other frugal states, however, the proposal is only a first step: The paper still does not envisage touching the agricultural and structural funds, which make up around two-thirds of the EU budget. According to EU circles, 14 member states that benefit greatly from the funding pots for farmers and structurally weak regions are strongly opposed to this. They also point to legal concerns, as the funding is firmly committed to the respective states.

Criticism of the Spanish Council Presidency

In Berlin, on the other hand, it is pointed out that a large proportion of the cohesion funds have not yet been disbursed. Brussels is also saying that the Spanish Council Presidency is not acting like an honest broker, but like a party – Madrid itself is a net beneficiary.

The negotiations are so tough that the timetable is beginning to falter. So far, the plan is for the heads of state and government to pave the way for an increase in the financial framework, which runs until 2027, at the summit on Dec. 14. However, only the financial aid for Ukraine, which according to the Commission proposal is to receive €50 billion in grants and loans over four years, is largely undisputed.

All in all, the Commission has called for an additional €100 billion, €66 billion of which is fresh money from the member states. tho

Mercosur negotiations enter home stretch

The trade talks between the EU Commission and the four Mercosur states are entering the final phase. “The technical negotiations are ready for a political push”, said Commission Vice-President Valdis Dombrovskis yesterday after the meeting of EU trade ministers. Spanish State Secretary Xiana Margarida Méndez Bértolo said that she hoped for the necessary political impetus in the next two weeks. “We are closer to a deal than ever before.”

According to Dombrovskis, the negotiating teams on both sides have now narrowed down the scope of the contentious issues considerably. The EU is demanding that Argentina, Brazil, Paraguay, and Uruguay specify the commitments made in the agreement negotiated in 2019, particularly on the protection of the rainforest, in an additional agreement. Among other things, the Mercosur states are demanding clarifications in the new EU law against deforestation and want to limit European companies’ access to public tenders.

The Brazilian government wants to conclude the negotiations by Dec. 7, when its presidency of the Mercosur bloc ends. President Lula da Silva and Commission President Ursula von der Leyen may attempt to clarify the final points of contention at a meeting on the sidelines of the World Climate Conference in Dubai. However, there is considerable resistance to the trade agreement in some EU countries such as France, Austria, and the Netherlands, which would facilitate imports of Argentinian beef, for example, albeit only to a limited extent.

Dombrovskis calls for flexibility from Washington

The Commission is also currently negotiating at full speed with the US government on the Global Arrangement on Sustainable Steel and Aluminum. Two years ago, both sides agreed to suspend the tariffs imposed by President Donald Trump on steel and aluminum imports for the time being. A follow-up solution must now be found.

The EU side sees a need for Washington to take action because the import quotas introduced in 2021 put European manufacturers at a disadvantage. These quotas are too rigid and therefore restrict exports, criticized Dombrovskis. The US system currently provides quotas for each individual member state and for steel alone in 45 different product categories, which also only apply per quarter.

An EU-wide and annually applicable quota and fewer product categories would be more suitable. Dombrovskis sees a certain openness to the demands on the part of the Biden administration. “But we have to wait and see how substantial the improvements are that the US side can present before we can decide on the next steps.” The EU could theoretically reinstate some of its countermeasures. tho

Europe’s right-wing populists launch election campaign in Florence

Matteo Salvini kicks off the European election campaign of the far-right Identity and Democracy (ID) party family. The leader of the Italian Lega is inviting the leading politicians of the European right-wing populists to Florence on Sunday. Salvini plans to present the program for this day in Rome today, Tuesday.

We are talking about an event organized by the European Parliament’s Identity and Democracy Group. In addition to members of the Italian Lega, the group also includes parliamentarians from the German AfD, the French Rassemblement National, the Austrian FPÖ, and the Dutch PVV. “On December 3, a new Europe will be born in Florence”, announced Salvini.

Participants are expected to include “leaders and representatives of European parties” who are “in an alliance with the Lega”. Marine Le Pen is expected to attend. The leader of the French Rassemblement National was already Salvini’s star guest at a large Lega party in Pontida at the end of September and is repeatedly referred to by him as a “dear friend”.

Series planned in several EU countries

This time, the guest list is set to include other high-ranking figures from Europe’s far right: According to consistent reports from Italian media, Alice Weidel from the German AfD will also be attending. The press office of the AfD parliamentary group did not respond to an inquiry. Geert Wilders, whose Party for Freedom clearly won the parliamentary elections in the Netherlands just a few days ago, could also join the group.

The event in Florence is to be the first in a series of similar events in other EU countries. The event is planned to take place on the grounds of the Fortezza da Basso, a 16th-century fortress located centrally behind the train station in Florence.

The city’s mayor, Dario Nardella from the social democratic Partito Democratico, has already announced protests against the event organized by Europe’s ultra-right. “If Salvini and Le Pen come to Florence to launch the ‘brown building site’ Europe, Florence will make its voice heard with an initiative for Europe, peace and democracy.” He wrote this on X and called for a “Europe Day” in the Tuscan capital. asf

Netherlands: Geert Wilders’ sounding board resigns

In the Netherlands, right-wing populist Geert Wilders’ first attempt to form a new government in The Hague has failed. Gom van Strien, who was commissioned by Wilders to conduct the exploratory talks, unexpectedly resigned from his post on Monday. Allegations of corruption against the senator had come to light at the weekend. Like Wilders, he belongs to the Freedom Party (PVV), which won the parliamentary elections last Wednesday. However, Wilders is dependent on partners in order to form a government majority.

Van Strien was actually due to meet with the leader of the conservative People’s Party for Freedom and Democracy (VVD), Dilan Yesilgöz, this Monday. Although the VVD has ruled out a coalition with the PVV, it has signaled its willingness to support a minority government.

Negotiations can take months

The center-right NSC party is being discussed as a possible coalition partner for Wilders. However, its leader Pieter Omtzigt has stated that cooperation with Wilders would be difficult due to his extreme positions. In the Netherlands, coalition negotiations can drag on for months due to the fragmented party landscape.

Wilders, who has described former US President Donald Trump and Hungarian Prime Minister Viktor Orbán as role models of sorts, announced during the election campaign that he would stop all immigration, cut Dutch payments to the European Union, and prevent new members such as Ukraine from joining. He also rejects Islam across the board and does not want to continue arms deliveries to Ukraine. rtr

Authorities from 18 countries present guidelines for safe AI

While the EU is struggling to present a comprehensive regulation for artificial intelligence with the AI Act, the number of guidelines for AI developers at international level continues to rise. On Monday, international security authorities presented a joint paper: “Guidelines for Secure AI System Development“.

The guide was published by the UK National Cyber Security Center (NCSC) and the US Cybersecurity and Infrastructure Security Agency (CISA). Twenty-three national security authorities from 18 countries, from Australia to France, Japan, and the USA, were involved. The German Federal Office for Information Security (BSI) was also involved, but the EU was not.

Work as expected and reliably

The guidelines are primarily aimed at providers of systems that use artificial intelligence (AI), regardless of whether they have developed them themselves. The aim is to ensure that AI is developed safely and responsibly so that the systems can later meet important requirements:

be available at all times when needed;
work as expected and reliably;
do not disclose any sensitive data.

The guidelines relate to the four stages of the life cycle: design, development, commissioning, and operation and maintenance. Among other things, they provide for risk management, documentation, secure supply chains and infrastructure as well as comprehensive monitoring. The authors believe that operators have a far-reaching duty to provide information to the users of AI.

BSI sees urgent need for action

The joint international publication makes it clear that issues relating to the security of AI systems “can only be resolved in cooperation with like-minded international partners“, writes the BSI. It also underlines the importance of the topic and the urgent need for action.

However, a large number of international guidelines and codes of conduct already exist, for example at the G7 level (Hiroshima AI Process) or the OECD. vis

Commission threatens to block Amazon’s purchase of iRobot

The takeover of robot vacuum cleaner provider iRobot by Amazon has met with resistance from the EU Commission. The Brussels authority sees the deal as a threat to competition. Following the takeover, Amazon would have the economic interest and the opportunity to hinder iRobot’s rivals, the Commission argued on Monday. The Amazon marketplace is a particularly important sales channel for competitors in Germany, among other countries.

In an initial reaction, Amazon pointed out that there is a lot of competition for iRobot, among other things. The concerns of the Commission will be addressed further.

Amazon can demand a hearing

Amazon can now request a hearing behind closed doors to dispel the concerns. The Commission wants to make a decision on the iRobot takeover worth $1.4 billion by February.

iRobot is best known for its self-propelled vacuum cleaners under the Roomba brand name. Newer models use cameras to create a 3D scan of the household and use artificial intelligence to avoid cables lying on the floor or dog excrement, for example.

Shares in iRobot fell by around a fifth on Monday following the Commission’s announcement – largely giving up the gains made on Friday after a media report about the EU’s likely approval of the takeover. dpa/rtr

The NZIA as an opportunity for a new beginning

By Ralph Brinkhaus

Ralph Brinkhaus is a member of the German Bundestag and a member of the Committee on EU Affairs. He was Chairman of the CDU/CSU parliamentary group until 2022.

Climate action and energy sovereignty require technology – specifically net-zero technologies that ensure lower emissions, from wind turbines and electrolyzers to efficient production control. We should produce these technologies on a significant scale in Europe for two reasons:

Firstly, this is a question of sovereignty. Because if net-zero technologies from battery cells to PV modules, for example, are almost exclusively manufactured in China, we are dependent. Dependent on the Chinese economy, dependent on transport routes and supply chains, but also dependent on the political will to supply us with the components that are crucial for the energy and climate transition.

Secondly – and this is just as important – the question of who produces net-zero technologies is crucial for the future of Europe as an industrial and production location.

Indirect and direct subsidies for the domestic economy

In an ideally functioning market economy, we could let things take their course, trusting in the strength and competitiveness of the European economy. Trusting that the better and more innovative will prevail. But this only works if everyone plays by the same rules.

However, this is not the case. China, and more recently the USA, are trying to give their locations an advantage through massive industrial policy – primarily through direct and indirect subsidies such as the US Inflation Reduction Act (IRA).

It is therefore logical that the EU is trying to counter this with the Net-Zero Industry Act (NZIA): 40% of net-zero products are to be manufactured in Europe. Parliament has cleared the way for this. It is regrettable that the discussion about this industrial policy package in Germany is taking place almost to the exclusion of the public. After all, as one of the leading industrial locations in Europe, Germany in particular stands to benefit from the NZIA. The CDU/CSU parliamentary group has therefore tabled a motion on the NZIA and thus at least brought the discussion into the Bundestag.

Industrial policy that doesn’t want to solve everything with money

What is remarkable about the Net-Zero Industry Act is that the focus of the funding is not primarily or even solely on subsidies worth billions, but on speeding up procedures, reducing bureaucracy, sensibly reducing standards, information, communication and training, and further education. Of course, this must also be backed up financially. Subsidies will of course follow, for example through the STEP program.

But an industrial policy that starts with unleashing and accelerating and does not follow the usual pattern of trying to solve everything exclusively with money is a promising start. Incidentally, such an approach would also be a good model for a national industrial policy in compliance with the debt brake.

Climate neutrality is more than solar and wind energy

The European Parliament has significantly expanded the list of products particularly favored by the NZIA. It will not only cover the technologies proposed by the Commission, from photovoltaics to wind power, but also biomethane, hydropower, Carbon Capture and Storage (CCS), and nuclear energy.

This may be debatable in individual cases, but it is fundamentally correct. Climate neutrality is not just a question of solar and wind energy. We need to think more broadly, we need to think more openly. This broader approach must now be urgently supported by the German Government in the trilogue. Because now is really not the time for the kind of dogmatic discussions that German politicians and associations like to have.

Blueprint for new structures in Germany

It would also be important for the focus on acceleration and reducing bureaucracy to be placed not only on individual strategic products but also on entire regions, the so-called Net-Zero Valleys. This would give us in Germany the opportunity to kick-start the innovation turbo for transformation regions such as the lignite regions or the automotive clusters.

The NZIA is not only an opportunity to put innovative net-zero technologies in the fast lane because procedures can be approved more quickly and industrial plants can be built faster. It could be a blueprint for a New State, for a fundamental reorganization of administrative and legal structures in Germany. Not just for the currently crucial net-zero technologies, but for all areas of the economy.

Implementation of NZIA is a high-priority matter

The federal and state governments now need to get their hands on net-zero technologies. They must use the NZIA to make public administration fast, efficient, and functional, from the one-stop agency for industrial projects to the digitalization of procedures and the acceleration of the legal process. All of this is too big to be delegated to state secretaries and heads of authorities – it is a top priority for the Chancellor, for every Prime Minister, and for every Minister of Economic Affairs.

For the further discussion of the NZIA, I would like to see three things in summary: Firstly, this discussion must really be held in Germany instead of being dealt with quietly by the Government. Secondly, we must clearly advocate this path of European industrial policy through smart framework conditions instead of large subsidies. Thirdly – and this is the most important thing – we must see the NZIA as a blueprint for the New State of public administration and extend acceleration to all sectors as quickly as possible.

EUROPE.TABLE EDITORS

Till
Hoppe

Charlotte
Wirth

Falk
Steiner

Timo
Landenberger

Corinna
Visser

Lukas
Knigge

Eric
Bonse

Sarah
Schaefer

Manuel
Berkel

Lisa-Martina
Klein

Markus
Grabitz

Stephan
Israel

Claire
Stam

Dear reader,

The European Union has taken a step forward in its goal of creating a Single Market for data. On Monday, the Council followed Parliament’s lead and adopted the Data Act. The law can now enter into force. It is intended to give companies fair access to data in order to uncover the treasures that lie hidden within it.

But the law alone will not get data sharing off the ground. What is also needed is a secure and trustworthy environment in which data can be exchanged. In addition, a (virtual) place where providers and consumers can even find out about the data that is available or needed. Finally, standards are needed to make data exchange efficient. Data spaces provide all of this.

One such data space is the European Industrial Data Space for data from production or the Health Data Space. Tomorrow, Wednesday, the Commission will present another one, the European Mobility Data Space (EMDS). It is intended to form the basis for the controlled exchange and secure use of mobility data throughout Europe.

With the European Mobility Data Space, the Commission wants to accelerate the digital transformation of the European transport sector and make the data usable for the sector and society. The data space is also an important prerequisite for optimizing intermodal transport. It should make the transportation of passengers and goods in Europe safer, more efficient, more accessible, and more sustainable. Hopefully also more reliable.

We wish you a wonderful day and an interesting read.

Your
Corinna Visser

Hydrogen: Gas network operators prevail

By

Manuel Berkel

The hydrogen package has now closed the last major gap in the development of the hydrogen economy. Yesterday evening, an agreement was reached in the trilogue on the Gas Market Directive. After the Commission had already laid the foundations for the production of green gases and e-fuels with the delegated acts on hydrogen, the hydrogen package now regulates the infrastructure – from gas distribution networks to storage facilities and import terminals.

The “horizontal” separation of the operation of natural gas and hydrogen networks was controversial until the very end – a meeting of the permanent representatives last Friday failed to reach an agreement. The owners of the existing network – around a dozen transport companies and hundreds of municipal utilities – wanted to operate hydrogen pipelines in their old structures wherever possible and have a free hand in deciding which natural gas pipelines to convert for hydrogen.

Expert: German government acts against consumer interests

The Commission, on the other hand, wanted at least corporate and accounting unbundling. The Parliament, led by the German rapporteur Jens Geier (SPD), called for the most economical horizontal unbundling possible – supported by the German government in the Council.

The Regulatory Assistance Project (RAP) takes a critical view of this. “Germany is trying to set the agenda in Brussels – and not for the benefit of Europe and not for the benefit of German consumers”, says RAP energy expert Andreas Jahn. If there were no effective unbundling for clean gases, individual “inefficient business models” in the gas industry would be perpetuated.

Separate ‘distribution system for hydrogen’

Following the agreement reached yesterday, the provision on unbundling under company law now only applies to transmission grids. Distribution networks are exempt from regulation, explained Geier after the negotiations. The advantage for the owners is that they can now set up their own “distribution system for hydrogen” and do not have to do anything more than unbundle their accounts. Member states can also exempt transport network operators from unbundling, provided there is a positive cost-benefit assessment.

A passage had already been agreed upon in the technical trilogues that is intended to give “sectors that are difficult to decarbonize” priority in the supply of hydrogen. However, it remains to be seen whether this can really rule out the use of hydrogen for applications that are easy to electrify, such as heating buildings.

Distribution grid operators plan decommissioning and new construction

The package also regulates the planning of hydrogen networks. Previous initial plans all relate to large transportation pipelines. For the first time, the directive also requires distribution network operators to plan every four years. This was of particular concern to the Members of Parliament. They are likely to hope that hydrogen will also reach companies away from large industrial centers more quickly.

MEPs have also pushed through planning for the decommissioning of gas networks. Distribution network operators must develop such plans “if a decline in gas demand is expected that makes it necessary to decommission natural gas distribution networks or parts of these networks”. However, the conversion of natural gas pipelines for hydrogen is expressly possible. In all cases, the basis is formed by local authority heating plans, and public participation is also required. Member states can also exempt operators of gas networks to which fewer than 45,000 customers are connected from the planning process.

Costs for gas phase-out could be passed on to grid fees

Things get tricky in cases where natural gas pipelines are taken out of service before they are written off. This is conceivable if climate targets stand in the way of continued operation or if many customers switch to other heating technologies of their own accord because they have become cheaper. In such cases, the owners will expect to be compensated.

The agreement now obliges the national regulatory authorities to submit guidelines for the depreciation and recalculation of network charges. Compared to the parliamentary report, the agreement grants the regulators fewer rights of intervention. The focus on network charges is new; the parliamentary report spoke more generally of “financial support”. The formal vote on the directive in Parliament’s plenary session is expected in March.

Hydrogen association dispute

The final negotiations on the gas market regulation only began in the evening. These include provisions on permanent joint gas purchasing and a European network of hydrogen network operators (ENNOH) – similar to the associations for gas (ENTSOG) and electricity (ENTSO-E). Among other things, the associations have the task of drawing up ten-year network development plans for the transport networks – which must then be confirmed by the regulatory agency ACER.

Parliament, led by rapporteur Jerzy Buzek (EPP), on the other hand, wanted to leave the planning of the hydrogen network to ENTSOG. However, the Climate Action Network (CAN) stated at the beginning of the year that this would entail the risk of an excessive expansion of hydrogen networks and a lock-in of fossil fuel infrastructure.

Budget: Spanish proposal brings little movement

The Spanish Council Presidency has presented initial proposals on how the increased financial requirements can also be covered by restructuring the EU Multiannual Financial Framework (MFF). The prop o sal contains three options: According to it, funds from other programs amounting to €8.1 billion, €13.1 billion, or €23.1 billion could be reallocated in order to raise additional funds for Ukraine, migration management, or the STEP funding program. The paper from Madrid was presented to the EU ambassadors of the member states on Thursday and is available to “Contexte”.

From the point of view of the German government and other frugal states, however, the proposal is only a first step: The paper still does not envisage touching the agricultural and structural funds, which make up around two-thirds of the EU budget. According to EU circles, 14 member states that benefit greatly from the funding pots for farmers and structurally weak regions are strongly opposed to this. They also point to legal concerns, as the funding is firmly committed to the respective states.

Criticism of the Spanish Council Presidency

In Berlin, on the other hand, it is pointed out that a large proportion of the cohesion funds have not yet been disbursed. Brussels is also saying that the Spanish Council Presidency is not acting like an honest broker, but like a party – Madrid itself is a net beneficiary.

The negotiations are so tough that the timetable is beginning to falter. So far, the plan is for the heads of state and government to pave the way for an increase in the financial framework, which runs until 2027, at the summit on Dec. 14. However, only the financial aid for Ukraine, which according to the Commission proposal is to receive €50 billion in grants and loans over four years, is largely undisputed.

All in all, the Commission has called for an additional €100 billion, €66 billion of which is fresh money from the member states. tho

Mercosur negotiations enter home stretch

The trade talks between the EU Commission and the four Mercosur states are entering the final phase. “The technical negotiations are ready for a political push”, said Commission Vice-President Valdis Dombrovskis yesterday after the meeting of EU trade ministers. Spanish State Secretary Xiana Margarida Méndez Bértolo said that she hoped for the necessary political impetus in the next two weeks. “We are closer to a deal than ever before.”

According to Dombrovskis, the negotiating teams on both sides have now narrowed down the scope of the contentious issues considerably. The EU is demanding that Argentina, Brazil, Paraguay, and Uruguay specify the commitments made in the agreement negotiated in 2019, particularly on the protection of the rainforest, in an additional agreement. Among other things, the Mercosur states are demanding clarifications in the new EU law against deforestation and want to limit European companies’ access to public tenders.

The Brazilian government wants to conclude the negotiations by Dec. 7, when its presidency of the Mercosur bloc ends. President Lula da Silva and Commission President Ursula von der Leyen may attempt to clarify the final points of contention at a meeting on the sidelines of the World Climate Conference in Dubai. However, there is considerable resistance to the trade agreement in some EU countries such as France, Austria, and the Netherlands, which would facilitate imports of Argentinian beef, for example, albeit only to a limited extent.

Dombrovskis calls for flexibility from Washington

The Commission is also currently negotiating at full speed with the US government on the Global Arrangement on Sustainable Steel and Aluminum. Two years ago, both sides agreed to suspend the tariffs imposed by President Donald Trump on steel and aluminum imports for the time being. A follow-up solution must now be found.

The EU side sees a need for Washington to take action because the import quotas introduced in 2021 put European manufacturers at a disadvantage. These quotas are too rigid and therefore restrict exports, criticized Dombrovskis. The US system currently provides quotas for each individual member state and for steel alone in 45 different product categories, which also only apply per quarter.

An EU-wide and annually applicable quota and fewer product categories would be more suitable. Dombrovskis sees a certain openness to the demands on the part of the Biden administration. “But we have to wait and see how substantial the improvements are that the US side can present before we can decide on the next steps.” The EU could theoretically reinstate some of its countermeasures. tho

Europe’s right-wing populists launch election campaign in Florence

Matteo Salvini kicks off the European election campaign of the far-right Identity and Democracy (ID) party family. The leader of the Italian Lega is inviting the leading politicians of the European right-wing populists to Florence on Sunday. Salvini plans to present the program for this day in Rome today, Tuesday.

We are talking about an event organized by the European Parliament’s Identity and Democracy Group. In addition to members of the Italian Lega, the group also includes parliamentarians from the German AfD, the French Rassemblement National, the Austrian FPÖ, and the Dutch PVV. “On December 3, a new Europe will be born in Florence”, announced Salvini.

Participants are expected to include “leaders and representatives of European parties” who are “in an alliance with the Lega”. Marine Le Pen is expected to attend. The leader of the French Rassemblement National was already Salvini’s star guest at a large Lega party in Pontida at the end of September and is repeatedly referred to by him as a “dear friend”.

Series planned in several EU countries

This time, the guest list is set to include other high-ranking figures from Europe’s far right: According to consistent reports from Italian media, Alice Weidel from the German AfD will also be attending. The press office of the AfD parliamentary group did not respond to an inquiry. Geert Wilders, whose Party for Freedom clearly won the parliamentary elections in the Netherlands just a few days ago, could also join the group.

The event in Florence is to be the first in a series of similar events in other EU countries. The event is planned to take place on the grounds of the Fortezza da Basso, a 16th-century fortress located centrally behind the train station in Florence.

The city’s mayor, Dario Nardella from the social democratic Partito Democratico, has already announced protests against the event organized by Europe’s ultra-right. “If Salvini and Le Pen come to Florence to launch the ‘brown building site’ Europe, Florence will make its voice heard with an initiative for Europe, peace and democracy.” He wrote this on X and called for a “Europe Day” in the Tuscan capital. asf

Netherlands: Geert Wilders’ sounding board resigns

In the Netherlands, right-wing populist Geert Wilders’ first attempt to form a new government in The Hague has failed. Gom van Strien, who was commissioned by Wilders to conduct the exploratory talks, unexpectedly resigned from his post on Monday. Allegations of corruption against the senator had come to light at the weekend. Like Wilders, he belongs to the Freedom Party (PVV), which won the parliamentary elections last Wednesday. However, Wilders is dependent on partners in order to form a government majority.

Van Strien was actually due to meet with the leader of the conservative People’s Party for Freedom and Democracy (VVD), Dilan Yesilgöz, this Monday. Although the VVD has ruled out a coalition with the PVV, it has signaled its willingness to support a minority government.

Negotiations can take months

The center-right NSC party is being discussed as a possible coalition partner for Wilders. However, its leader Pieter Omtzigt has stated that cooperation with Wilders would be difficult due to his extreme positions. In the Netherlands, coalition negotiations can drag on for months due to the fragmented party landscape.

Wilders, who has described former US President Donald Trump and Hungarian Prime Minister Viktor Orbán as role models of sorts, announced during the election campaign that he would stop all immigration, cut Dutch payments to the European Union, and prevent new members such as Ukraine from joining. He also rejects Islam across the board and does not want to continue arms deliveries to Ukraine. rtr

Authorities from 18 countries present guidelines for safe AI

While the EU is struggling to present a comprehensive regulation for artificial intelligence with the AI Act, the number of guidelines for AI developers at international level continues to rise. On Monday, international security authorities presented a joint paper: “Guidelines for Secure AI System Development“.

The guide was published by the UK National Cyber Security Center (NCSC) and the US Cybersecurity and Infrastructure Security Agency (CISA). Twenty-three national security authorities from 18 countries, from Australia to France, Japan, and the USA, were involved. The German Federal Office for Information Security (BSI) was also involved, but the EU was not.

Work as expected and reliably

The guidelines are primarily aimed at providers of systems that use artificial intelligence (AI), regardless of whether they have developed them themselves. The aim is to ensure that AI is developed safely and responsibly so that the systems can later meet important requirements:

be available at all times when needed;
work as expected and reliably;
do not disclose any sensitive data.

The guidelines relate to the four stages of the life cycle: design, development, commissioning, and operation and maintenance. Among other things, they provide for risk management, documentation, secure supply chains and infrastructure as well as comprehensive monitoring. The authors believe that operators have a far-reaching duty to provide information to the users of AI.

BSI sees urgent need for action

The joint international publication makes it clear that issues relating to the security of AI systems “can only be resolved in cooperation with like-minded international partners“, writes the BSI. It also underlines the importance of the topic and the urgent need for action.

However, a large number of international guidelines and codes of conduct already exist, for example at the G7 level (Hiroshima AI Process) or the OECD. vis

Commission threatens to block Amazon’s purchase of iRobot

The takeover of robot vacuum cleaner provider iRobot by Amazon has met with resistance from the EU Commission. The Brussels authority sees the deal as a threat to competition. Following the takeover, Amazon would have the economic interest and the opportunity to hinder iRobot’s rivals, the Commission argued on Monday. The Amazon marketplace is a particularly important sales channel for competitors in Germany, among other countries.

In an initial reaction, Amazon pointed out that there is a lot of competition for iRobot, among other things. The concerns of the Commission will be addressed further.

Amazon can demand a hearing

Amazon can now request a hearing behind closed doors to dispel the concerns. The Commission wants to make a decision on the iRobot takeover worth $1.4 billion by February.

iRobot is best known for its self-propelled vacuum cleaners under the Roomba brand name. Newer models use cameras to create a 3D scan of the household and use artificial intelligence to avoid cables lying on the floor or dog excrement, for example.

Shares in iRobot fell by around a fifth on Monday following the Commission’s announcement – largely giving up the gains made on Friday after a media report about the EU’s likely approval of the takeover. dpa/rtr

The NZIA as an opportunity for a new beginning

By Ralph Brinkhaus

Climate action and energy sovereignty require technology – specifically net-zero technologies that ensure lower emissions, from wind turbines and electrolyzers to efficient production control. We should produce these technologies on a significant scale in Europe for two reasons:

Firstly, this is a question of sovereignty. Because if net-zero technologies from battery cells to PV modules, for example, are almost exclusively manufactured in China, we are dependent. Dependent on the Chinese economy, dependent on transport routes and supply chains, but also dependent on the political will to supply us with the components that are crucial for the energy and climate transition.

Secondly – and this is just as important – the question of who produces net-zero technologies is crucial for the future of Europe as an industrial and production location.

Indirect and direct subsidies for the domestic economy

In an ideally functioning market economy, we could let things take their course, trusting in the strength and competitiveness of the European economy. Trusting that the better and more innovative will prevail. But this only works if everyone plays by the same rules.

However, this is not the case. China, and more recently the USA, are trying to give their locations an advantage through massive industrial policy – primarily through direct and indirect subsidies such as the US Inflation Reduction Act (IRA).

It is therefore logical that the EU is trying to counter this with the Net-Zero Industry Act (NZIA): 40% of net-zero products are to be manufactured in Europe. Parliament has cleared the way for this. It is regrettable that the discussion about this industrial policy package in Germany is taking place almost to the exclusion of the public. After all, as one of the leading industrial locations in Europe, Germany in particular stands to benefit from the NZIA. The CDU/CSU parliamentary group has therefore tabled a motion on the NZIA and thus at least brought the discussion into the Bundestag.

Industrial policy that doesn’t want to solve everything with money

What is remarkable about the Net-Zero Industry Act is that the focus of the funding is not primarily or even solely on subsidies worth billions, but on speeding up procedures, reducing bureaucracy, sensibly reducing standards, information, communication and training, and further education. Of course, this must also be backed up financially. Subsidies will of course follow, for example through the STEP program.

But an industrial policy that starts with unleashing and accelerating and does not follow the usual pattern of trying to solve everything exclusively with money is a promising start. Incidentally, such an approach would also be a good model for a national industrial policy in compliance with the debt brake.

Climate neutrality is more than solar and wind energy

The European Parliament has significantly expanded the list of products particularly favored by the NZIA. It will not only cover the technologies proposed by the Commission, from photovoltaics to wind power, but also biomethane, hydropower, Carbon Capture and Storage (CCS), and nuclear energy.

This may be debatable in individual cases, but it is fundamentally correct. Climate neutrality is not just a question of solar and wind energy. We need to think more broadly, we need to think more openly. This broader approach must now be urgently supported by the German Government in the trilogue. Because now is really not the time for the kind of dogmatic discussions that German politicians and associations like to have.

Blueprint for new structures in Germany

It would also be important for the focus on acceleration and reducing bureaucracy to be placed not only on individual strategic products but also on entire regions, the so-called Net-Zero Valleys. This would give us in Germany the opportunity to kick-start the innovation turbo for transformation regions such as the lignite regions or the automotive clusters.

The NZIA is not only an opportunity to put innovative net-zero technologies in the fast lane because procedures can be approved more quickly and industrial plants can be built faster. It could be a blueprint for a New State, for a fundamental reorganization of administrative and legal structures in Germany. Not just for the currently crucial net-zero technologies, but for all areas of the economy.

Implementation of NZIA is a high-priority matter

The federal and state governments now need to get their hands on net-zero technologies. They must use the NZIA to make public administration fast, efficient, and functional, from the one-stop agency for industrial projects to the digitalization of procedures and the acceleration of the legal process. All of this is too big to be delegated to state secretaries and heads of authorities – it is a top priority for the Chancellor, for every Prime Minister, and for every Minister of Economic Affairs.

For the further discussion of the NZIA, I would like to see three things in summary: Firstly, this discussion must really be held in Germany instead of being dealt with quietly by the Government. Secondly, we must clearly advocate this path of European industrial policy through smart framework conditions instead of large subsidies. Thirdly – and this is the most important thing – we must see the NZIA as a blueprint for the New State of public administration and extend acceleration to all sectors as quickly as possible.