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Europe.Table #251 / 17. August 2022

Who stays in the 16+1 format? + Energy saving plans worldwide + Open RAN + VAT on gas levy

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Professional Briefing
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To the German edition.
  • 16+1: The Baltics leave, but Hungary remains loyal to China
  • Energy saving plans in Europe and across the globe
  • Open RAN: Study warns of risks
  • EU Commission: no VAT exemption for gas levy
  • LNG terminals: Federal government and gas importers conclude agreement
  • Finland and Latvia: fewer visas for Russians
  • Nuclear deal: EU reviews Iran’s reponse
  • CSR Directive: VDMA calls for streamlining of reporting requirements
Dear reader,

Gas and electricity could become scarce and very expensive commodities in winter. European leaders are therefore already pledging solidarity. From many member states’ points of view, however, this also includes Germany keeping its remaining three nuclear power plants on the grid beyond the end of the year. Yesterday, the Wall Street Journal reported that the German government wants to postpone the shutdown. Federal Economic Affairs Minister Robert Habeck (Greens) issued a harsh denial, saying the report lacked “any factual basis”. Nevertheless, there are many indications that the coalition is laying the foundation for the politically sensitive decision.

The Baltic countries have already implemented their decision to withdraw from the former 16+1 format with China. Does this now mean the collapse of the cooperation format? Probably not, according to Amelie Richter. It is true that other countries could follow the Baltic states’ example. But key candidates still benefit too much from China to make leaving worthwhile.

The Open RAN initiative generated high expectations. It was supposed to provide independence from China in the telecommunications sector and, even more importantly, security. But scientists now warn that the threat of dependence on China in mobile communications technology still remains. Falk Steiner took a closer look at the paper.

The German Mechanical Engineering Industry Association (VDMA) has serious reservations about the CSR Directive, which will impose new sustainability reporting obligations on SMEs. In today’s Opinion, VDMA expert Sarah Brückner calls for the reporting requirements to be streamlined. Otherwise, it is not the environment that ultimately stands to benefit from the Brussels plans – but the consulting industry, through a guaranteed increase in contracts.

I wish you an exciting read.

Your
Lisa-Martina Klein
Image of Lisa-Martina  Klein

Feature

16+1: The Baltics leave, but Hungary remains loyal to China

The Baltic exit from China’s Cooperation Initiative in Eastern and Central Europe became a reality last week. Latvia and Estonia followed Lithuania and announced their withdrawal from the 16+1 format. Is this the beginning of the end for the remaining 14+1 format?
By
Amelie Richter
Image of Amelie Richter

The proposal sounded promising: A major power wants to channel money into Central and Eastern European states, develop infrastructure, revive old factories, and invest in people and local projects that are unable to attract Western investors. The 16+1 format appeared on the scene and a race to become “China’s gateway to Europe” began. For some participants, however, the finish line never came in sight, and economic hopes remained unfulfilled. There are no fireworks to mark the tenth anniversary of its founding. Instead, the cooperation format continues to shrink with the withdrawal of Latvia and Estonia.

In 2012, the “Cooperation between China and Central and Eastern European Countries”, or China-CEEC, was formed. It included 16 countries in Central and Eastern Europe and the People’s Republic. After Greece joined, it was given the unofficial name 17+1. In 2021, Lithuania took the first step, left the cooperation format, and changed its name back to 16+1.

Since last week, the numbers have to be re-counted again. With the coordinated withdrawal of the Baltic EU states Estonia and Latvia, there are now only 14+1 left. The remaining 14 consist of the 9 EU member states Bulgaria, Greece, Croatia, Poland, Romania, Slovenia, Slovakia, Czech Republic and Hungary. In addition, there are the Five Western Balkan states of Albania, Bosnia and Herzegovina, Serbia, Montenegro and North Macedonia.

  • China
  • Estonia
  • European policy
  • Geopolitics
  • Latvia

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