| | Dear Readers,
Emmanuel Macron has secured a second term as France’s President. His re-election triggered a heartfelt sigh of relief at least in the democratic part of the old continent. After all, Macron’s victory kept the right-wing extremist Marine Le Pen out of the Élysée Palace thereby preventing a break-up of the European Union. How the EU’s attitude towards Russian aggression in Ukraine would have changed if Putin-fan Marine Le Pen had succeeded in gaining power in Paris does not bear thinking about.
So, does that mean everything is all right again now? Far from it.
More than 40 percent of voters in the run-off on 24 April chose the right-wing populist. Marine Le Pen has established herself as the second-strongest political force in France. She will not give up on her goal of becoming the French head of state in five years’ time. If that is to be prevented, Macron will have to pick up the pieces of domestic policy, reduce social tensions, push ahead with the energy transition and above all credibly challenge the idea that he is only the President of a small, wealthy elite.
France is not the only country whose domestic politics is threatened by autocratic, anti-democratic disruption. Several governments within the Union are at odds with the values of a free democratic society. Ahead of the field, Hungary’s newly re-elected leader, Victor Orban, who is threatening to take his country out of the EU, wants to pay for Russian gas in roubles and is undermining the supply of arms to Kyiv. The show of strength by Brussels in cutting funding to Budapest was overdue if the Union is to avoid going rotten from the inside out.
Global tensions will not necessarily be eased by the fact that fascist Russia under dictator Vladimir Putin wants to align with one-party-state China to forge an anti-democratic counterweight to the West.
The Centrum für Europäische Politik will continue to work, with greater urgency than ever, to provide proper clarification and sound advice.
Stay with us!
Best wishes
Dr. Jörg Köpke |
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| | | | Two election winners, two systems: While France’s President Emmanuel Macron (r.) wants more Europe, Hungary’s President Victor Orban is fighting for greater national sovereignty - often with scant regard for the rule of law. |
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| | | | Latest EU Proposals in Focus |
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| | | REPowerEU 1: Proposed measures
On 18 May, as part of its REPowerEU strategy [COM(2022) 108; cepAdhoc 4/2022], the Commission will propose numerous measures for a secure, affordable and sustainable energy supply in the EU. These aim to end dependence on Russian energy imports as soon as possible, cushion the burden of high energy prices on households and businesses and accelerate the expansion of renewable energies.
REPowerEU 2: Refocusing EU energy diplomacy
On 18 May, as part of its REPowerEU strategy [COM(2022) 108; cepAdhoc 4/2022], the Commission will present its plans for refocusing international cooperation with third countries in the energy sector (EU energy diplomacy). This aims to ensure global access to a secure, affordable and sustainable energy supply for the EU and its Member States. |
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| | | | | Financial services: Distance selling to consumers
On 11 May, the Commission intends to present a proposal to revise Directive [2002/65/EC] on the distance selling of consumer financial services. The Directive notably includes provisions on the information which must be given to consumers prior to the conclusion of a distance contract for a financial service. It also rules on the right of withdrawal. The Commission now wants to revise the Directive as distance selling has also become digitalised and many new products, actors and sales channels have emerged since 2002.
DEBRA: Debt-equity bias reduction allowance
On 11 May, the Commission intends to present a legislative proposal to establish a Debt Equity Bias Reduction Allowance (DEBRA). The aim is to counteract the tax-induced preference for debt over equity financing, prevent the tax-induced distortion of investment decisions and counteract the accumulation of debt among companies. |
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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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| | | Trilogue agreement on the Digital Services Act
On 23 April 2022, a political agreement was reached on the Digital Services Act (DSA). The DSA will apply to online intermediaries such as social networks and marketplaces, e.g. Facebook and Amazon. Among other things, it aims to ensure that platform providers take measures to combat the distribution of dangerous goods, child pornography, terrorist content and other illegal content. Targeted advertising, based on sensitive data - e.g. religion, sexual orientation, political opinion and health data - or aimed at minors, will be banned. Furthermore, "dark patterns", i.e. manipulative designs that are e.g. intended to persuade people to consent to the processing of their data, for example by clearly emphasising consent over rejection, will be banned. Users must also have the option to choose a content recommendation system that is not based on profiling. In addition, social networks will only be able to block and exclude users if they have informed them of this. Users can challenge a social network's decision and claim financial compensation from digital companies if they do not comply with the DAS requirements. Marketplaces such as Amazon and Airbnb must also ascertain the identity of their business customers. |
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| | | | | Bank resolution: Revised EU rulebook
On 28 April 2022, political agreement was reached on the revised EU bank resolution framework. The new regulation, also known as the "daisy chain", is part of the EU Commission's efforts to achieve the Banking Union. It provides for changes to the EU capital adequacy rules as well as to the EU Bank Resolution Directive. It is also intended to improve the resolvability of banks. In particular, barriers that prevent banks in financial difficulties from being recapitalised with private funds are to be dismantled. The Council and the European Parliament still have to formally agree before the regulation can enter into force. |
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| | | | | | The EU Commission asks decision-makers and interested parties from civil society for their opinion on European policy proposals. Here is our short-list of the most important consultations: |
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| | | Emergency instrument: Better crisis response
Border closures in the spring of 2020 as a result of the COVID 19 pandemic, as well as Russia's invasion of Ukraine, have shown that the single market has difficulty in dealing with unforeseen crises. An emergency instrument aims to help policy-makers anticipate and prevent disruptions to the single market and to prepare for and respond to crises. Among other things, the Commission envisages the systematic identification and monitoring of strategic supply chains, setting up the strategic storage of raw materials and joint action on procurement. In its Consultation, it wants to gather views on this.
The submission period for opinions ends on 11 May 2022.
Go to Consultation |
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| | | | | Money market funds: Evaluation of the EU Regulation
The EU Regulation on money market funds [(EU) 2017/1131, see cepPolicyBrief 43/2014] has been in effect since 2019. It was created to address the credit and liquidity risks faced by money market funds during the financial crisis. It was also intended to strengthen the protection of investors in money market funds and improve the supervision of money market funds. By summer 2022, the Commission must present a report on the functioning of the Regulation. The Commission is using the consultation to find out the extent to which the provisions of the Regulation are appropriate and whether they should be adapted if necessary.
The submission period for opinions ends on 13 May 2022.
Go to Consultation
Ratings: New requirements for ESG ratings and ESG factors in credit ratings
In July 2021, the Commission published a new Sustainable Finance Strategy [COM(2021) 390, see cepInput 14/2021]. This included an announcement on measures for environmental, social and governance (ESG) ratings, as well as greater consideration of sustainability factors in credit ratings. The Commission is using the consultation to gain a better insight into the functioning of the market for ESG ratings, on the one hand, and to gather information on how rating agencies incorporate ESG risks into their credit ratings, on the other.
The submission period for opinions ends on 6 June 2022.
Go to Consultation
Digital Euro: EU Commission explores next steps
The introduction of a digital euro has been under discussion in the EU for some time: In a Statement in March 2021, the members of the Euro Summit called for exploratory work on the introduction of a digital euro to be taken forward. In October 2020, the European Central Bank (ECB) published a Report on the digital euro. The Commission is using the Consultation to gather views notably on users' needs and expectations for a digital euro, its role for retail payments in the EU, the status of euro cash as legal tender and the impact of the digital euro on the financial sector and financial stability.
The submission period for opinions ends on 14 June 2022.
Go to Consultation |
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| | | | | Textiles: Sustainability and recyclability requirements
The Commission has presented an EU Strategy for Sustainable and Circular Textiles [COM(2022) 141] as part of its Circular Economy Action Plan [COM(2020) 98; see cepPolicyBrief 5/2020]. The aim of this is for textiles to be designed to be more durable and more easily reused, repaired and recycled. Thus, the Commission intends to set mandatory requirements for the design of textiles under the proposed Ecodesign Regulation [COM(2022) 142].
The submission period for opinions ends on 15 May 2022.
Go to Consultation
Sustainable products: New Ecodesign Regulation
The Commission has launched a consultation on its proposal for a new Ecodesign Regulation [COM(2022) 142] to replace the current Ecodesign Directive [2009/125/EC]. In future, ecodesign requirements are to be developed for a wider range of "sustainable products". In addition to electronic appliances (see cepInput 5/2022) and construction products, these also include textiles and furniture.
The submission period for opinions ends on 20 June 2022.
Go to Consultation
Chemicals: Revision of the Cosmetic Products Regulation
As part of its EU Chemicals Strategy [COM(2020) 667], the Commission wants to revise the Cosmetic Products Regulation [(EC) No 1223/2009]. The aim is to extend the "generic approach to risk management" to include other pollutants, as well as to establish specifications for endocrine disruptors and to harmonise the definition of nanomaterials.
The submission period for opinions ends on 21 June 2022.
Go to Consultation |
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| | | | | Trucks and buses: dimensions and weights
The Commission intends to revise the Directive on the maximum authorised dimensions and weights of heavy goods vehicles [96/53/EC; see cepPolicyBrief 32/2013]. The revised EU rules are intended to improve the environmental performance of trucks and buses, contribute to a smoothly functioning EU internal market and increase road safety.
The deadline for submission of comments is 19 July 2022.
To the Consultation |
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| | | | | Alcoholic beverages: Adjustment of excise duties
The Commission wants to adjust excise duties on alcohol and alcoholic beverages. The corresponding Directive [92/83/EEC] sets minimum rates of taxation for the Member States. However, these have not been revised since 1992, which is why the Commission sees a need for adjustment mainly due to market developments, changes in consumption and inflation. Health protection, in particular, is to be taken into account when setting tax rates.
The submission period for opinions ends on 4 July 2022.
Go to Consultation
Antimicrobial resistance: Restrictions on antibiotics
The use of antibiotics is common in conventional animal husbandry. Antimicrobial resistance (AMR) can also develop through the consumption of meat from this type of farming. This jeopardises the successful control of infectious diseases in humans (see cepPolicyBrief 1/2018 and cepPolicyBrief 2/2020). Certain antimicrobial agents or groups of antimicrobial agents (antibiotics) should therefore be reserved for human medicine. In particular, an advisory opinion can be issued listing the active substances that may no longer be used in animal husbandry in the future.
The submission period for opinions ends on 17 May 2022.
Go to Consultation |
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| | | | | Regulatory consumer protection: Improving EU-wide enforcement
The Commission wants to ensure the effectiveness of the Regulation [(EU) 2017/2394] on cooperation between national authorities responsible for the enforcement of EU consumer protection laws. The Commission primarily wishes to build a more effective, EU-wide enforcement network. It also aims to improve cross-border enforcement of consumer rights, tackle the unfair business practices of certain economic sectors and increase the resilience of the enforcement network in crisis situations, such as during the Corona pandemic.
The submission period for opinions ends on 27 June 2022.
Go to Consultation
Alternative Dispute Resolution: Implementing EU law in consumer disputes
The Commission intends to submit a report on the out-of-court settlement of consumer disputes. It will identify the main challenges for alternative dispute resolution and online dispute resolution at national and EU level. It will also provide insights on how the use of these instruments can contribute to the out-of-court settlement of low-value consumer disputes.
The submission period for opinions ends on 27 June 2022.
Go to Consultation
Cosmetic products: Revision of EU legislation
As part of the Sustainable Chemicals Strategy, the Commission intends to amend the Cosmetics Regulation [(EC) No 1223/2009], notably to improve the protection of human health and the environment. The Commission's main aim is to support innovation for safe and sustainable chemicals. Among other things, the revision specifically aims to contribute to achieving a coherent definition of nanomaterials and to ensure simplified and transparent labelling of cosmetic products that is consistent both on packaging and online.
The submission period for opinions ends on 20 June 2022.
Go to Consultation |
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| | | | | 2 - 5 May 2022
Strasbourg
Session of the European Parliament. It concerns, among other matters, Artificial Intelligence in the Digital Age and the presentation of the Annual Report 2021 on Competition Policy.
3 May 2022
Video conference
Video conference of the Eurogroup. It concerns a draft work plan on the banking union.
9 May 2022
Strasbourg
Presentation of the results of the Conference for the Future of Europe.
15 - 16 May
France
Second Meeting of the EU-US Transatlantic Trade and Technology Council (TTC). It concerns the strengthening of cooperation regarding issues of trade and technology.
18 - 19 May 2022
Brussels
Session of the European Parliament. It concerns the rule of law and the consequences for war crimes in Ukraine.
23 May 2022
Brussels
Meeting of the Eurogroup.*
23 May 2022
Brussels
Meeting of the General Affairs Council.*
24 May 2022
Brussels
Meeting of the Economic and Financial Affairs Council (Ecofin).*
30 - 31 May 2022
Brussels
Special meeting of the European Council.*
* The agenda was not yet fixed at the time of copy deadline |
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| | | | cep Publications to Current Topics |
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| | cepPolicyBrief: New Consumer Credit Directive |
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| | | Crowdfunding platforms, 0%-financing, buy-now-pay-later offers: The variety of quickly available online credit has increased drastically. While these offers stimulate competition, they lead to new risks for consumers. To strengthen their rights and better protect them from private over-indebtedness, the Commission is working on a new Directive. The Centrum für Europäische Politik (cep) generally regards the reform as necessary, but views some of the proposals as too rigid and not yet fully developed.
Go to cepPolicyBrief 4/2022 |
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| | | | cepInput: Right to Repair |
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| | | The Commission plans a right to repair. It is intended to encourage consumers to use products longer and to oblige companies to extend the life of products as well as to guarantee better reparability. The cep warns of a conflict between consumer and environmental protection.
Go to cepInput 5/2022 |
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| | | | | Dear Readers,
The destiny of 440 million citizens depends on the future European constitution. The so-called Conference on the Future of Europe has now agreed on wide-ranging proposals for reform. Let’s hope these are more than just good intentions. The EU Parliament is pushing for a Constitutional Convention. The time has come to remedy the European Union’s inherent defects.
Best wishes
Dr. Jörg Köpke |
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