| | Dear Readers,
CDU leader Friedrich Merz, the CDU's candidate for Chancellor, has become the subject of some debate in Germany and Europe. He has opened the political floodgates with his showcase motion on migration policy because he relied on the votes of the right-wing populist AfD party to get a majority in the Bundestag - this is an unprecedented event. There is talk of breaking taboos, breaking the law and breaking promises, of tearing down a firewall, of damaging democracy.
Politically, the manoeuvre, which was taken after the horrendous act in Aschaffenburg, does not appear to have done Merz any favours. Latest polls show the CDU/CSU below the 30 per cent mark for the first time in months, while the AfD continues to make gains. Traditionally, voters prefer the original, not the copy. A fact that was also overlooked by the conservative-bourgeois parties in France when, in their attempt to fight the right-wing nationalists, they started moving closer to Marine Le Pen and succeeded only in diminishing themselves.
Democracy thrives on compromise, on clear but conciliatory tones, not on bickering and populism. This is especially true in areas of policy in which system dysfunction has been apparent for years. It has long been an open secret that a misguided deportation and migration policy is overburdening German society and driving it to the brink of rupture. This calls for solutions - real solutions, not election campaign bluster and showmanship. And that applies to all the democratic forces; they are all called upon here because the failure is cross-party. After all, with Wolfgang Schäuble, Thomas de Maizière and Horst Seehofer, the CDU/CSU held the post of Interior Minister for many years - and did nothing, absolute zilch, that was any different or any better than anything undertaken since 2021 under their much-maligned SPD successor Nancy Faeser.
By accusing his opponent Merz of damaging the German economy with the infamous vote, Green Vice-Chancellor Robert Habeck has become the proverbial thrower of stones in glass houses. The Green candidate for Chancellor can also be accused of populism by trying to hide his own failings as the incumbent Economic Minister behind those of his CDU opponent. Let us not forget the heating law, the Supply Chain Act and the e-mobility disaster, not to mention the recession.
Both men need to hear our cry: Just sort out the problems! Get together! Germany deserves to see confident, forward-looking politicians with a hands-on approach - not ideology-driven noise and short-sighted opportunism.
Yours
Dr. Jörg Köpke |
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| | | | Democracy thrives on compromise, not on bickering and populism. |
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| | | | Latest EU Proposals in Focus |
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| | Work Programme: Presentation of the EU Commission's Plans for 2025 |
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| | On 11 February 2025, the Commission will unveil its 2025 work programme in which it sets out the policy initiatives and regulatory measures that it intends to put forward this year. It will also specify the months and quarters in which these initiatives and measures are to be presented. |
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| | | | | | | E-Commerce: Better Enforcement of the Existing Legislation
On 5 February, the EU Commission will publish a Communication on the current challenges facing e-commerce platforms. The Communication will contain a series of measures and proposals aimed at simplifying the cross-border use of e-commerce platforms and improving the enforcement of existing legislation. The latter relates in particular to the Platform to Business Regulation, which is intended to promote fairness and transparency for commercial users of online platforms (see cepPolicyBrief). |
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| | | | | | Innovation | Infrastructure | Industry |
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| Industrial Policy: New Strategy for the Green Transition
On 26 February, the Commission will publish a Communication on the "Clean Industrial Deal" (see cepInput 17/2024). The aim is to combine implementation of the measures adopted under the EU Green Deal with a strategic focus on the competitiveness of European industry and the preservation of high-quality jobs. This will involve the simplification of administrative procedures and the creation of incentives for private investment. Particular focus will be placed on securing access to a cost-effective, sustainable and secure supply of energy and raw materials. This will involve promoting the establishment of European lead markets for the development, production and application of green technologies. In addition, planning, tendering and authorisation procedures for green industrial projects will be fast-tracked. |
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| | | | | | | Action Plan for Affordable Energy
On 26 February, the European Commission will present an "Action Plan for Affordable Energy". This includes the announcement of measures to reduce energy prices for private households and businesses as well as to support industry with respect to decarbonisation [see cepInput Mission Letters 4/2024]. Energy prices in Europe are higher than in most other major economies. Following the sharp rise in energy prices as a result of the Russian invasion of Ukraine in 2022, it is unlikely that they will return to pre-crisis levels. For one thing, it will not be possible to end dependence on fossil fuel imports in the short term, and for another, the transformation to a decarbonised energy system requires considerable investment. High costs for domestic and imported energy are a burden on private households and weaken the international competitiveness of the European economy. The measures will be fleshed out at European and national level in the coming months. The Action Plan will form part of the "Clean Industrial Deal" and be accompanied by a roadmap for phasing out Russian energy imports, which is being used to implement the REPowerEU plan [see cepAdhoc 4/2022]. |
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| | | | | | Financial Markets | Internal Market |
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| Omnibus Package: Initial Proposals to Reduce and Consolidate EU Reporting Obligations
On 26 February 2025, the Commission will present a so-called omnibus package consisting of a Communication and an Omnibus Regulation. An omnibus bill usually combines several pieces of EU legislation into a single legislative proposal. The background to the omnibus package is the realisation that the EU will need to strengthen its competitiveness in the coming years. In order to get closer to reaching this goal, the Commission wants to reduce, consolidate and simplify numerous reporting obligations that have been created at EU level in recent years. The Commission has set itself the target of reducing reporting obligations by at least 25%, and even by at least 35% for small and medium-sized enterprises.
The planned Omnibus Regulation will be the first step in this direction. For example, the Commission is planning to amend three much-discussed pieces of EU legislation which contain extensive, sometimes inappropriate, overlapping and contradictory reporting requirements. These are (1) the Corporate Sustainability Reporting Directive [CSRD, (EU) 2022/2464, see cepPolicyBrief], (2) the Regulation on the establishment of a framework to facilitate sustainable investment [Green Taxonomy Regulation, (EU) 2020/852, see cepPolicyBrief], and (3) the Corporate Sustainability Due Diligence Directive [CSDDD, (EU) 2024/1760, see cepPolicyBrief].
First, the Commission wants to align the data to be reported more closely with the needs of investors. Secondly, it wants to make the deadlines from which the reporting obligations apply more proportionate. Thirdly, the focus of reporting should be directed more strongly towards corporate activities that are considered particularly harmful. Fourthly, it wants to organise the reporting obligations in such a way that investors do not refrain from investing in small companies that are in the midst of transition. And fifthly, the Commission wants to protect small companies in the supply chain (avoiding the "trickle-down effect"). The Commission is also planning to create a new category for company size. In addition to small and medium-sized enterprises (SMEs) on the one hand and large companies on the other, there will also be a category of "small mid caps" in between. Similar to SMEs, small mid caps are also to benefit from simplified reporting obligations.
On 17 December 2024, four federal ministries jointly submitted proposals for reducing the administrative burden on companies with respect to the CSRD. On 18 January 2025, the European People's Party (EPP) presented ideas for reducing bureaucracy. These also contained proposals pertaining to the design of the planned Omnibus Regulation. In addition, on 20 January 2025, the French government presented proposals on the regulatory adjustments it believes should be part of the Omnibus Package. |
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| | | | | | | | The Commission, the Council and the European Parliament regularly negotiate in the so-called trilogue on EU legislative proposals in order to find a common position. We have put together a summary of the most important trilogue decisions since the last Newsletter. |
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| | | Platform on Sustainable Finance: Proposals for Further Development of the Green Taxonomy
On 8 January 2025, the Platform on Sustainable Finance, an advisory group of the EU Commission, presented proposals for further development of the green taxonomy. In a draft report, it presented preliminary recommendations for revision of the delegated act on climate change mitigation ((EU) 2021/2139) and the inclusion of further economic activities in the EU’s green taxonomy. At the same time, it also launched a Consultation on the draft report.
The draft report contains recommendations on revising the technical screening criteria for economic activities, which are already part of the delegated act on climate change mitigation. Most notably, these are concrete recommendations for the criteria to be reviewed and updated. The platform also makes suggestions for improving the user-friendliness and consistency of the criteria. Ideas for adapting certain criteria to new scientific findings and technological developments are also contained in the report, as are recommendations for the inclusion of additional economic activities in the green taxonomy. These include, for example, the activities of refineries if they make a significant contribution to mitigating climate change, and mining activities which serve climate change mitigation. Other digital solutions and services that help to protect the environment are also mentioned. The report does not yet contain any final recommendations on the inclusion of other activities, such as the manufacture of rescue aircraft, the maintenance of tunnels and bridges, the manufacture of tyres and energy-efficient equipment in industry, but currently restricts itself to progress reports. Nor, due to the platform's limited resources, does the report yet contain any criteria for all those telecommunications networks that make a significant contribution to climate change adaptation.
The submission period for opinions ends on 5 February 2025.
Go to Consultation
EBA Guidelines: Consultation on ESG Scenario Analysis
On 16 January 2025, the European Banking Authority (EBA) launched a Consultation on its draft Guidelines on Environmental, Social and Governance (ESG) scenario analysis. These are intended to supplement the Guidelines on the management of ESG risks, which the EBA presented on 9 January 2025. While the latter lay down requirements for banks to identify, measure, manage and monitor ESG risks, the Guidelines on ESG scenario analysis indicate what is expected of banks when they use such analyses to test their resilience to the negative impact of ESG factors.
The submission period for opinions ends on 16 April 2025.
Go to Consultation |
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| | | | | Revision of EU Competition Rules on Technology Transfers
The EU Commission has launched a public Consultation on the possible revision of the Technology Transfer Block Exemption Regulation (TTBER) and accompanying Guidelines. The TTBER regulates the conditions under which certain technology transfer agreements are exempt from the ban on anti-competitive agreements under Art. 101 (1) TFEU. The aim is to create clear and simple rules for pro-competitive licence agreements in order to facilitate technology transfers, stimulate research and development and promote innovation, in line with the new EU competition agenda.
The Consultation is part of an impact assessment that follows on from an evaluation of current rules completed in November 2024. The Commission is examining whether the existing Regulation should be extended, adapted or allowed to expire. The focus will be on new challenges posed by digitalisation, particularly the handling of data licensing in technology transfer agreements, practical difficulties in the application of market share thresholds for technology markets, a review of the rules on technology pools and licensing negotiation groups as well as harmonisation with recently revised provisions on block exemptions.
Interested companies, law firms, academics and national competition authorities are invited to submit their comments on the Commission's "Have your Say" portal by 25 April 2025. The results of the consultation will be incorporated into the planned revision of the rules, a first draft of which is expected to be published in summer 2025. The final version of the revised TTBER and Guidelines is expected in the second quarter of 2026.
The submission period for opinions ends on 25 April 2025.
Go to Consultation |
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| | | | | 6 February 2025
Luxembourg
EU Advocate General Szpunar will deliver his Opinion in the proceedings against Russmedia Digital SRL and Inform Media Press (C-492/23); the Opinion was originally scheduled for 12 December 2024 in the calendar of the European Court of Justice (CJEU). The proceedings, referred by a Romanian court, concern the liability of a host service provider for an advert that contained disparaging and offensive content about the claimant. The advert indicated that the claimant offered sexual services and showed photos and the claimant's telephone number. The advert had been published by a third party on the Russmedia platform without authorisation and was subsequently picked up and distributed by other advertising websites. The claimant is demanding compensation for non-pecuniary damage from Russmedia because it states that Russmedia, as owner of the platform, was responsible for placement of the blatantly unlawful advert. In legal terms, the proceedings concern, among other things, the grey area between responsibility under data protection law and the fundamental prohibition of a general monitoring obligation on the Internet. One of the issues at stake is whether Russmedia can invoke provisions exempting it from liability under the E-Commerce Directive, now regulated in the Digital Services Act. This could be problematic because Russmedia is not simply a passive hosting service provider but also reserves rights of use to the content published on its platform. In addition, the Romanian court wants to know to what extent hosting service providers, as data protection controllers, must check the content of adverts before they are published to determine whether they violate fundamental rights and to what extent they must take protective measures to prevent or restrict the copying and dissemination of the content of adverts published via their platform.
13 February 2025
Luxembourg
The CJEU will issue an important judgement in Case C-383/23, on the level of fines for data protection violations. According to Art. 83 (4)-(6) General Data Protection Regulation (GDPR), national data protection supervisory authorities can impose fines on “undertakings” of up to 2% or 4% of their "total worldwide annual turnover in the preceding financial year". The CJEU will decide on how the term "undertaking" is to be interpreted in this context and whether the fine should be calculated based on the group-wide turnover of a group of companies (economic unit) or only on the turnover of the subsidiary that has violated the GDPR.
According to the Danish authority dealing with the case, the calculation of GDPR fines should be based not on the individual turnover of the offending undertaking but on the total turnover of the group of undertakings to which the undertaking belongs. It bases this assertion on Recital 150 of the GDPR, according to which an 'undertaking' should be understood to be an undertaking in accordance with EU competition law (Articles 101 and 102 TFEU) when determining fines. The "undertaking" would therefore be the "economic unit" to which the infringing undertaking belongs, even if this unit consists of several legal or natural persons. On that basis, the (higher) turnover of the group of undertakings, i.e. the group to which the infringing undertaking belongs, should be used to calculate the fine. In contrast, the Danish company concerned, ILVA S/A, believes that only its own turnover, i.e. the turnover of the infringing subsidiary, should be taken into account when calculating the fine.
It seems likely that the Court will follow its reasoning in the "Deutsche Wohnen" case (C-807/21) and decide that the turnover of the economic unit (i.e. the group) to which the company belongs should be used to determine the maximum amount of the fine. According to Advocate General Medina, the (higher) group turnover may also be taken into account when determining the amount of the actual fine, but only as one of several factors alongside the other circumstances of the specific case and only if this is necessary and proportionate for an effective and dissuasive sanction. The Guidelines 04/2022 of the European Data Protection Board (EDPB) also state that the (starting) amount for determining GDPR fines must be calculated and/or adjusted based on turnover. This means that fines against large companies could be higher in future, if only because of the increased margin when group turnover is taken into account. |
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| | | | | | cepInput: Trade-Offs and Risks in EU Digital Policy |
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| | | The EU wants to close the gap with leading digital nations such as the USA - one way being to appoint a new Commissioner for Technological Sovereignty, Security and Democracy. The title alone says it all: EU digital policy is caught in a trilemma. The Centrum für Europäische Politik (cep) warns of the risks arising from conflicting objectives - and describes possible ways out.
Go to cepInput |
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| | | | cepStudy: Towards Decarbonised Road Transport Driven by a Globally Competitive EU Automotive Industry |
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| | | A flexible way out of the crisis in the automotive industry is for the EU to focus more on technological openness and market-driven decarbonisation with regard to CO2 limits. It is the only way to reconcile robust competitiveness and ambitious climate targets. That is the result of a Study by the Centrum für Europäische Politik (cep) commissioned by the European Automobile Manufacturers' Association (ACEA).
Go to cepStudy |
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| | | | cepInput: An Economic Security Doctrine For Europe |
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| | | Prohibitive tariffs, protectionism, nationalism: with US President Donald Trump's second term in office, the global economic environment is becoming even more uncertain for the European Union (EU). In a new Study, the Centrum für Europäische Politik (cep) advises Europe to adopt a coordinated strategy and deepen intercontinental partnerships.
Go to cepInput |
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| | | | | | The international website "Common Ground of Europe" is an initiative of the Centres for European Policy Network (cep). On the commongroundeurope.eu website, cep collects mainly English-language contributions, articles and interviews from decision-makers and experts in politics, business and science. We cordially invite you to take a look through our window on Europe. Here are some examples from the past month. |
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| | Smarter, Not Harder: A Research-Driven Agenda for Europe's AI Sovereignty |
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| With the EU lagging behind the US and China in AI, a smarter focus on software, decentralised systems and human capital could be the best way forward. By utilising algorithmic innovation and synthetic data while avoiding a costly hardware race, Europe can forge its own path to AI sovereignty. This approach ensures competitiveness and is in line with fundamental European values.
Go to article |
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| | | | Genesis - The Creation of a New World by Superhuman AI |
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| "Genesis", the new book recently published by Henry A. Kissinger, Craig Mundie and Eric Schmidt, is certainly not short on temerity for it announces the impending dawn of a completely new cycle of creation - technological, biological, sociological.
Go to article |
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| | | | | Dear Readers,
Franciscan monk Peter Amendt says: "Far-sighted is he who looks long."
Yours
Dr. Jörg Köpke |
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