The first responsibilities for the dossiers are allocated in the European Parliament. The rapporteur for the European Defense Investment Program will be Francois-Xavier Bellamy (EPP). On Thursday, Romanian EPP MEP Siegfried Mureșan also announced that he had been appointed rapporteur for the next Multiannual Financial Framework (MFF). The Social Democrats need a little longer. They are expected to appoint Mureșan’s co-rapporteur at the beginning of next week.
Mureșan and his S&D colleague will be responsible for what is probably the most important dossier of the new legislature. Read my colleague János Allenbach-Ammann’s Analysis of how the EU Commission is campaigning for a more effective MFF.
There is a great deal of desire – for financing energy infrastructure, for example. Poland, for example, which will hold the next Council Presidency, would prefer EU funds to be used to subsidize electricity distribution grids on a large scale in the future and not just important transport lines between the member states. State Secretary for Climate Action Krzysztof Bolesta made this clear at the Bruegel Annual Meeting on Wednesday.
Feature
Michel Barnier: Prime Minister by the grace of the Rassemblement National
Emmanuel Macron has appointed former EU Brexit negotiator Michel Barnier as the new French Prime Minister after more than 50 days in the interim government.
73-year-old Michel Barnier is the oldest prime minister in the history of France. He succeeds Gabriel Attal, who was the youngest prime minister at the age of 35 and was appointed just eight months ago. The appointment of Barnier – who describes himself as a Gaullist – sends a signal of stability to Brussels, to European partners and to the financial markets, says Eric Maurice from the European Policy Center (EPC). The signal is “that there will be no break in the policy that Emmanuel Macron has been pursuing since his election in 2017″. This means that the budgetary discipline and pension reform will probably remain in place.
Barnier’s appointment offers “the chance of the broadest possible approval”, the Elysée Palace announced on Thursday. In reality, however, Barnier will have considerable difficulties in finding a majority in the National Assembly. Since the parliamentary elections in July, the National Assembly has been divided into three blocs: the left-wing bloc with the Nouveau Front Populaire (NFP), the right-wing bloc of the Rassemblement National and the Macron bloc. The Republicans, to which Barnier belongs, are non-aligned.
‘Clearance’ by the Rassemblement National
The problem is that neither bloc has a majority. Just a few days ago, the conservative Republicans had emphasized that they did not want to be part of a government, but they have now welcomed Barnier’s appointment. Macron’s centrist camp will also not put any obstacles in the way of the new head of government. The NFP, on the other hand, had proposed its own candidate and will not accept Barnier. The Socialists have already announced a vote of no confidence. Barnier will therefore “very much depend on the goodwill of the Rassemblement National”, analyzes Eric Maurice.
The RN threatened a vote of no confidence in almost all the prime ministerial candidates that had previously been put forward. This was one of the reasons why they failed. They could now use their power again with Barnier – this time with their approval. They first want to wait for the new prime minister’s government statement, the RN reported. Barnier’s statements on migration policy and his often critical stance on EU regulations had caused astonishment in Brussels despite his clear commitment to the EU and caught the RN off guard.
Socialist MP and former President François Hollande criticized the fact that Barnier could only be appointed by President Macron “because the RN gave a kind of a clearance”. Even if the RN is no longer talking about Frexit, this partyis anything but pro-European, warned another French MP.
Hardly any weight in Brussels
In addition to the difficult majority situation in France, the French Prime Minister carries little weight on the European stage. “In France, the prime minister is the big absentee in Brussels. He does not sit on the European Council and works in the background of the President and his ministers”, explains Maurice.
Commission President Ursula von der Leyen congratulated Michel Barnier on his appointment on Thursday. The former Brexit negotiator has “the interests of Europe and France at heart, as his many years of experience prove”, she wrote on X and wished him “every success in his new role”.
Emmanuel Macron
Translation missing.
Hearings in Parliament: What awaits the new Commissioners
Next Wednesday, Commission President Ursula von der Leyen will present her proposal for the 26 commissioner posts – but it will be some time before the new commissioners take up their posts. The Commissioners-designate will probably not have to face their hearings in the European Parliament until the week beginning Oct. 14.
Parliament needs time to sort itself out for the hearings and to sound out the candidates. Parliament will probably receive the necessary documents on Thursday at the earliest. And not directly from the Commission President, but from the Council: The Council formally consults the European Parliament and forwards the CVs of the candidates, their declarations on possible conflicts of interest and the mission letters with which the Commission President outlines the portfolios and tasks. The fact that von der Leyen will first meet the heads of the political groups on Wednesday is a gesture that she wants to closely involve the legislature.
The head of the Conference of Committee Chairs (CCC), Bernd Lange (SPD), will then propose a timetable and the allocation of responsibilities for the hearings to the parliamentary committees and submit it to the Committee of Political Group Leaders (CoP). If they give the green light, the CCC will be called upon again. The heads of the committees agree on the general and technical questions that the candidates will be asked to answer in writing before the hearing. The CoP must confirm the questionnaires.
Assets must be declared
Parliament’s Legal Affairs Committee examines candidates’ declarations of potential conflicts of interest. What they have to declare is set out in the Code of Conduct for Commissioners. Candidates must provide very detailed information on:
previous activities
current secondary activities
financial interests (assets over €10,000 and liabilities)
financial interests of their partner
memberships in parties, associations and organizations relevant to EU policy
real estate (except owner-occupied)
professional activity of their partner
If the Legal Affairs Committee identifies a conflict of interest, it makes suggestions as to how this can be resolved – for example by selling company shareholdings.
Written questions before the hearing
The confirmation hearings of the candidates in the specialist committees are organized by the committee chairs and the respective coordinators of the parliamentary groups. If the applicant’s area of responsibility affects several committees, the committees cooperate. If the work of other committees is only affected, they have guest status.
Each applicant will be asked questions in good time before the hearing. The CCC asks two questions each. The first question focuses on general aptitude, commitment to Europe and independence. The second question focuses on the candidate’s portfolio and cooperation with Parliament.
The committeeresponsible asks five questions. If several committees are involved, three questionseach are permitted. The CVs and answers to the written questions are published on Parliament’s website before the hearing. Three hours are set aside for the hearings. Four hours are also possible if the portfolio is particularly complicated and several committees are involved. The sessions are broadcast live.
Coordinators evaluate performance
The evaluation of the hearings is carried out by the heads of the committees and the coordinators. They meet immediately after the end of the hearing and draw up a letter of assessment for each candidate. The votes of the coordinators representing their group in the vote are decisive. A two-thirds majority is required to give the green light. Only parliamentary groups can vote, non-attached members are excluded.
If less than two-thirds vote in favor of an applicant, additional written questions may be submitted for response and a second hearing of up to 90 minutes is possible if supported by the CoP. The evaluation letters from the committees are sent to the CCC and the CoP within 24 hours of the end of the evaluation process. The group leaders decide that the application process is complete and authorize the publication of the evaluation letters.
Parliament lets heads roll
If all candidates pass their hearings, the entire Commission could be voted on during the plenary session at the end of October. However, this is “not very realistic”, says an experienced MEP. Parliamentarians traditionally demand at least one head, if only to demonstrate their strength to the Commission and the member states. This time, the Parliament could also let several candidates fall through. Not only the Hungarian Olivér Varhélyi is considered a shaky candidate. Liberals and Socialists are also forming opposition to the Italian Fratelli candidate Raffaele Fitto.
If Parliament rejects an applicant, the new Commission could not start until Dec. 1. The government concerned would have to nominate another name, which would be heard again. However, the next plenary week for the final vote is not scheduled until the end of November.
Translation missing.
MFF: How the EU Commission is campaigning for a more effective budget
At the annual meeting of the think tank Bruegel, which took place this week in Brussels, senior Commission officials offered an insight into the preparatory work for the next long-term EU budget. The Commission will present a first proposal for the MFF from 2028 to 2034 as early as summer 2025.
At the same time, officials are preparing proposals for action for the new Commission. The course for the new MFF is therefore already being set. It is clear that the Recovery and Resilience Facility (ARF) will play a major role in this. It has increased the EU budget in recent years from the usual one percent to the current 1.7 percent of the EU GDP. “The question of the size [of the MFF] is always complex, but I think it will be even more complex this time”, said Stéphanie Riso, Director-General for the Budget.
EU funds should be more closely linked to national reforms
In addition to the size, there are also design issues where Riso wants to incorporate findings from the ARF. For example, the disbursement logic of linking EU funds to reforms in the member states: “This is a very interesting feature for the new budget”, said Riso, as this approach has strengthened the link between EU priorities and national priorities.
Financing via joint debt is also interesting. Although Riso emphasized that the borrowing was conceived as a one-off procedure, she pointed out what she sees as the positive effects on the European capital market. “With this debt, we also have a new, very secure, very liquid safe asset to the capital market”, which would certainly also support the development of the Capital Markets Union.
Another lesson from the ARF is that the EU budget can be used as a crisis management tool. However, this can only work in the new MFF if it becomes simpler and more flexible. “We have become too complex”, complained Riso. There are now 52 programs, some of which pursue the same goals, but with different funding criteria and reporting rules. “It would help to have uniform rules and a single plan per country that combines reforms with investments”, she said, referring to the ARF.
Commission would have more powers in ARF logic
However, there are also reservations about this development. States and federal states that currently receive a lot of cohesion funds see their interests threatened if the money is tied to new conditions. In addition, the ARF methodology strengthens the Commission’s position vis-à-vis national governments. This is because the agreed reforms and measures must be approved and monitored by the Commission.
In addition, the reconstruction fund itself isalso being criticized because its implementation is being delayed. Last Monday, the EU Court of Auditors criticized this delay in implementation in the member states in a report and warned that the delays were jeopardizing the achievement of the fund’s objectives.
Verwey defends himself against criticism of ARF implementation
At the Bruegel conference, another EU chief official defended himself against this criticism. “The reporting on the absorption of the ARF was too negative”, complained Maarten Verwey, Director-General of the Directorate-General for Economic and Financial Affairs.
The Court of Auditors’ report only refers to the period up to 2023, which is why Verwey emphasized: “We have seen that implementationhas picked up speed this year and we expect to be well over 300 billion [euros in RRF funds disbursed] by the end of the year.” While this is still slightly below the disbursement progress that had been hoped for, it is still much faster than any EU budget instrument that has come before.
The interpretation of the ARF’s success or failure will be a tough battle. After all, whether the EU Commission can transfer elements of the recovery fund to the new MFF will depend, among other things, on whether the recovery fund is considered a success or not. “Proving that [the recovery fund] has worked is essential for any discussion we will have in the future about new economic instruments”, said Eurogroup President Paschal Donohoe in Brussels.
EU-Haushalt
EU-Monitoring
Sept. 9, 2024; 2:30-6:30 p.m. Meeting of the International Trade Committee (INTA) Topics: Debate with the Commission on the negotiations on the plurilateral WTO agreement on e-commerce, debate with Sabine Weyand (Director-General of DG Trade, Commission).Draft agenda
Sept. 9, 2024; 3-6:30 p.m. Meeting of the Committee for Public Health (SANT) Topics: Exchange of views between members of the SANT subcommittee on “Public health in the 10th parliamentary term of the European Parliament”.Draft agenda
Sept. 9, 2024; 3-6:30 p.m. Meeting of the Committee for Regional Development (REGI) Topics: Exchange of views with Commissioner Ferreira on cohesion policy, exchange of views with the representative of the Committee of the Regions on cohesion policy.Draft agenda
Sept. 10, 2024 ECJ ruling on abuse of dominant position – preferential treatment of own price comparison service Topics: The European Court of Justice (ECJ) decides whether Google must pay a fine of 2.42 billion euros due to the possible abuse of a dominant market position as a search engine operator.Legal remedy
Sept. 11, 2024 Weekly commission meeting Topics: Report on the state of the Energy Union. Info
Sept. 13-14, 2024 Informal meeting of economics and finance ministers Topics: Sustainable financing of the green transition, Impact of demographic change on public debt sustainability, New financing options to support low-income countries in their response to global challenges.Info
Sept. 13, 2024 Euro Group Topics: The Economics and Finance Ministers meet for consultations.Info
News
Market power of farmers: Where von der Leyen sets different priorities
Now that the results of the Strategy Dialogue on Agriculture have been published, it is clear that EU Commission President Ursula von der Leyenis focusing much more strongly on the issue of market powerthan the panel of associations whose recommendations are actually to be incorporated into her plans for the new term of office.
“We have to take a close look at the supply chains“, emphasized von der Leyen at the presentation of the final reporton Wednesday. The fact that companies are sometimes systematically forced to sell below production costs is unacceptable. The CDU politician had already highlighted the issue in her candidacy speech to the European Parliament.
Strategy dialog focuses on competitiveness and cooperatives
In contrast, theproposals of the strategy dialog on market powerremain quite cautious. In addition to farmers’ representatives and NGOs, the committee also included representatives from the food industry and retail sector, who agreed on a compromise text by consensus. This text also calls for the position of farmers in the supply chain to be strengthened. However, it does not recommend stricter rules for buyers; in terms of unfair trading practices, existing EU law should merely be implemented.
Instead, the stakeholder committee is focusing on farmersbecoming more competitive: By working together with other farms, for example by sharing machinery, and through new technologies, they should reducetheir production costs. Politicians should contribute to this by removing legal hurdles and creating further training opportunities.
EU Commission plans to amend the Common Market Organization
At the same time, cooperatives should bestrengthened in order to improve the market power of farmers, the strategy dialog demands. However, the committee has left the specific measures open. The Commission has already addressed the issue: It expects to propose changes to the Common Market Organization in the autumn. It is expected that this will simplify the legal conditions for cooperatives.
The step is part of a non-binding roadmap to strengthen the market power of farmers, which the EU Commission presented at the beginning of the year and to which von der Leyen referred again on Wednesday. This also provides for an evaluation of the Unfair Trading Practices Directive, which, if necessary, should lead to its reform. jd
Europäische Kommission
Air freight cartel: Advocate General rejects objections
The Advocate General at the European Court of Justice, Athanasios Rantos, has proposed that the appeals of twelve airlines against judgments of the General Court of the European Union against an air cargo cartel be dismissed. Only in the case of SAS Cargo Group should the judgment be partially set aside and referred back for reconsideration. At issue is the amount of the fine imposed on SAS.
The proceedings relate to a decision by the European Commission in 2017, which uncovered and sanctioned a far-reaching cartel in the air freight sector. Between 1999 and 2006, numerous airlines, including Air France, Lufthansa and Singapore Airlines, cooperated in price-fixing agreements on fuel surcharges, security surcharges and the refusal to pay commissions on surcharges. The discovery of the cartel triggered a wave of outrage at the time: It was considered one of the most serious cases of market manipulation in the European aviation market and highlighted the challenges in the fight against illegal agreements in global industries.
Critics criticize long duration of proceedings
After several years of investigations, the Commission’s anti-trust watchdogs imposed fines totaling almost €800 million. The Commission spared Lufthansa because it had initiated the proceedings in the first place as a key witness. However, it had to settle civil claims, for example against Deutsche Bahn.
Observers saw the decision as a strong signal against competition law infringements. At the same time, critics emphasized that the complexity of the case and the long duration of the proceedings revealed weaknesses in European competition law. The airlines concerned lodged an appeal and disputed both the Commission’s jurisdiction and the amount of the penalties imposed.
Advocate General Rantos is now largely backing the Commission. He argues that the agreements had a significant impact on the EU market and that the sanctions were justified. For SAS Cargo, however, he sees possible errors in the calculation of the penalty and recommends a new assessment by the court. A final decision by the European Court of Justice is expected in the coming months. vis
Wettbewerbspolitik
Google: Advocate General sees possible infringement of competition law with Android Auto
The Advocate General of the European Court of Justice, Laila Medina, accuses Google of a possible infringement of competition law. The reason for this is the company’s decision to deny third parties access to the Android Auto platform. Specifically, it concerns Google’s refusal to allow the Juice Pass app from the company Enel X on Android Auto. The app offers services for charging electric vehicles.
The background to this is a dispute that goes back to the decision of the Italian competition authority. It was found that Google had abusedits dominant market position by obstructing the release of the Juice Pass app on Android Auto. In 2018, Enel X had asked Google to make the app compatible with Android Auto, which Google refused, citing security concerns and a lack of resources. Enel X then brought an action before the Italian Council of State, which referred the case to the European Court of Justice.
Android Auto must not discriminate against third-party providers
In her Opinion, the Advocate General made it clear that the usual criteria for a dominant company to refuse access do not apply here. According to Medina, these so-called Bronner conditions do not apply, as the Android Auto platform was not developed exclusively for Google, but is intended to accommodate apps from third-party providers. This means that Google is abusing its position if it refuses, delays or hinders access for the app and this behavior is not objectively justified.
Such a justification could only exist if access were technically impossible or could impair the performance of the platform. According to the Advocate General, Google must ensure that third-party providers are not discriminated against as long as the access requirements are reasonable and feasible.
Google must expect considerable consequences
The judgment of the European Court of Justice is expected at a later date. The Opinion is not binding on the Court of Justice. Nevertheless, it often follows them. Google must then be prepared for several consequences:
Obligation to open their platform
Fines and sanctions
Change in business practices
A precedent for further cases
Possible lawsuits from other third-party providers
Overall, a ruling against Google could require significant changes in market behavior and a realignment of the platform strategy in order to meet the requirements of competition law. vis
Wettbewerbsverfahren
Artificial intelligence: Commission signs Council of Europe framework convention
On Thursday, the Commission signed the Council of Europe Framework Convention on Artificial Intelligence (AI), Human Rights, Democracy and the Rule of Law on behalf of the European Union. Věra Jourová, Vice-President of the Commission for Values and Transparency, signed the world’s first internationally binding convention on AI in Vilnius.
“We must ensure that the increasing use of AI preserves our norms rather than undermining them”, said Marija Pejčinović Burić, Secretary General of the Council of Europe. The AI Convention is “a strong and balanced text”, which is the result of an open and inclusive approach, characterized by diverse and expert perspectives. As an open treaty, it has a potentially global reach.
Other countries around the world can join in
Not only member states of the Council of Europe can become part of the AI Framework Convention. It is also open to third countries. In addition to the European Union, the United Kingdom, Norway, Iceland, Georgia, the Republic of Moldova, Andorra and San Marino, the USA and Israelhave also signed the AI Convention today.
“We also need legally binding rules for the development and use of AI at a global level. This is the only way we can succeed in protecting our fundamental values – human rights, democracy and the rule of law – while at the same time promoting progress and innovation”, said State Secretary Angelika Schlunck from the Federal Ministry of Justice. The Council of Europe’s AI Convention is an integral part of the development of international AI governance, which Germany is supporting to a large extent.
Principles for trustworthy AI
By signing the agreement, the EU is committing to the human-centered and safe use of AI. The agreement is fully compatible with EU law and the European AI Act, the Commission announced. The AI Act is the first comprehensive AI regulation worldwide. The EU, represented by the Commission and with the support of the Member States, was very actively involved in the negotiations on the AI Framework Convention, it added.
The AI Framework Agreement prescribes principles for trustworthy AI, such as transparency, accountability and data protection. It supports the development of safe innovations through regulatory sandboxes and calls for greater documentation and oversight of AI systems. It also provides for specific measures to prevent discriminatory practices and ensure the integrity of democratic processes. The agreement contains exceptions for research and development and for national security.
The EU Commission is now planning to draw up a proposal for a Council decision on the agreement. The European Parliament should also give its consent before the agreement finally enters into force. vis
Künstliche Intelligenz-Verordnung
Energy networks: Renew wants to redistribute EU funds
The Liberals in the EU Parliament are aiming for an own-initiative report on energy networks. A decision could already be made at a meeting of the coordinators of the Industry Committee next week, French MEP Christophe Grudler told Table.Briefings on Thursday. Grudler is the ITRE coordinator for the Renew Group.
Grudler wants a redistribution of the money from the Connecting Europe Facility (CEF), the most important, but still underfunded EU fund for cross-border energy projects. “If very expensive projects that have already been selected take a long time and make no progress, we should redirect themoney to more efficient projects instead“, said Grudler. ber
Erdgas
Hungary: CRRC builds locomotive plant
The cooperation between the Hungarian company Acemil and the Chinese rail vehicle manufacturer China Railway Rolling Stock Corporation (CRRC) could now see the creation of a separate plant in Hungary to supply the European market. This was reported by the industry platform Railway Gazette.
Acemil signed a cooperation agreement with CRRC ZELC, a subsidiary of the Chinese state-owned group, in May of this year. According to the report, the production facilities will be operational next year. The two companies also plan to set up a training and R&D facility.
CRRC ZELC primarily manufactures shunting and freight locomotives. These are now also to be produced in Hungary for the European market: The main products that CRRC ZELC wants to manufacture for the EU market are mainline and shunting locomotives, electric multiple units and double-decker trains. CRRC ZELC and Acemil assume that all four product lines could be manufactured in Hungary.
By jointly manufacturing in the EU with Acemil, CRRC ZELC can also accept larger tenders without becoming subject to the Foreign Subsidies Regulation, which monitors subsidies from third countries within the EU. In Bulgaria, another CRRC subsidiary, CRRC Qingdao Sifang Locomotive, had already withdrawn from a tender after the EU Commission launched an investigation. ari
The first responsibilities for the dossiers are allocated in the European Parliament. The rapporteur for the European Defense Investment Program will be Francois-Xavier Bellamy (EPP). On Thursday, Romanian EPP MEP Siegfried Mureșan also announced that he had been appointed rapporteur for the next Multiannual Financial Framework (MFF). The Social Democrats need a little longer. They are expected to appoint Mureșan’s co-rapporteur at the beginning of next week.
Mureșan and his S&D colleague will be responsible for what is probably the most important dossier of the new legislature. Read my colleague János Allenbach-Ammann’s Analysis of how the EU Commission is campaigning for a more effective MFF.
There is a great deal of desire – for financing energy infrastructure, for example. Poland, for example, which will hold the next Council Presidency, would prefer EU funds to be used to subsidize electricity distribution grids on a large scale in the future and not just important transport lines between the member states. State Secretary for Climate Action Krzysztof Bolesta made this clear at the Bruegel Annual Meeting on Wednesday.
Feature
Michel Barnier: Prime Minister by the grace of the Rassemblement National
Emmanuel Macron has appointed former EU Brexit negotiator Michel Barnier as the new French Prime Minister after more than 50 days in the interim government.
73-year-old Michel Barnier is the oldest prime minister in the history of France. He succeeds Gabriel Attal, who was the youngest prime minister at the age of 35 and was appointed just eight months ago. The appointment of Barnier – who describes himself as a Gaullist – sends a signal of stability to Brussels, to European partners and to the financial markets, says Eric Maurice from the European Policy Center (EPC). The signal is “that there will be no break in the policy that Emmanuel Macron has been pursuing since his election in 2017″. This means that the budgetary discipline and pension reform will probably remain in place.
Barnier’s appointment offers “the chance of the broadest possible approval”, the Elysée Palace announced on Thursday. In reality, however, Barnier will have considerable difficulties in finding a majority in the National Assembly. Since the parliamentary elections in July, the National Assembly has been divided into three blocs: the left-wing bloc with the Nouveau Front Populaire (NFP), the right-wing bloc of the Rassemblement National and the Macron bloc. The Republicans, to which Barnier belongs, are non-aligned.
‘Clearance’ by the Rassemblement National
The problem is that neither bloc has a majority. Just a few days ago, the conservative Republicans had emphasized that they did not want to be part of a government, but they have now welcomed Barnier’s appointment. Macron’s centrist camp will also not put any obstacles in the way of the new head of government. The NFP, on the other hand, had proposed its own candidate and will not accept Barnier. The Socialists have already announced a vote of no confidence. Barnier will therefore “very much depend on the goodwill of the Rassemblement National”, analyzes Eric Maurice.
The RN threatened a vote of no confidence in almost all the prime ministerial candidates that had previously been put forward. This was one of the reasons why they failed. They could now use their power again with Barnier – this time with their approval. They first want to wait for the new prime minister’s government statement, the RN reported. Barnier’s statements on migration policy and his often critical stance on EU regulations had caused astonishment in Brussels despite his clear commitment to the EU and caught the RN off guard.
Socialist MP and former President François Hollande criticized the fact that Barnier could only be appointed by President Macron “because the RN gave a kind of a clearance”. Even if the RN is no longer talking about Frexit, this partyis anything but pro-European, warned another French MP.
Hardly any weight in Brussels
In addition to the difficult majority situation in France, the French Prime Minister carries little weight on the European stage. “In France, the prime minister is the big absentee in Brussels. He does not sit on the European Council and works in the background of the President and his ministers”, explains Maurice.
Commission President Ursula von der Leyen congratulated Michel Barnier on his appointment on Thursday. The former Brexit negotiator has “the interests of Europe and France at heart, as his many years of experience prove”, she wrote on X and wished him “every success in his new role”.
Emmanuel Macron
Translation missing.
Hearings in Parliament: What awaits the new Commissioners
Next Wednesday, Commission President Ursula von der Leyen will present her proposal for the 26 commissioner posts – but it will be some time before the new commissioners take up their posts. The Commissioners-designate will probably not have to face their hearings in the European Parliament until the week beginning Oct. 14.
Parliament needs time to sort itself out for the hearings and to sound out the candidates. Parliament will probably receive the necessary documents on Thursday at the earliest. And not directly from the Commission President, but from the Council: The Council formally consults the European Parliament and forwards the CVs of the candidates, their declarations on possible conflicts of interest and the mission letters with which the Commission President outlines the portfolios and tasks. The fact that von der Leyen will first meet the heads of the political groups on Wednesday is a gesture that she wants to closely involve the legislature.
The head of the Conference of Committee Chairs (CCC), Bernd Lange (SPD), will then propose a timetable and the allocation of responsibilities for the hearings to the parliamentary committees and submit it to the Committee of Political Group Leaders (CoP). If they give the green light, the CCC will be called upon again. The heads of the committees agree on the general and technical questions that the candidates will be asked to answer in writing before the hearing. The CoP must confirm the questionnaires.
Assets must be declared
Parliament’s Legal Affairs Committee examines candidates’ declarations of potential conflicts of interest. What they have to declare is set out in the Code of Conduct for Commissioners. Candidates must provide very detailed information on:
previous activities
current secondary activities
financial interests (assets over €10,000 and liabilities)
financial interests of their partner
memberships in parties, associations and organizations relevant to EU policy
real estate (except owner-occupied)
professional activity of their partner
If the Legal Affairs Committee identifies a conflict of interest, it makes suggestions as to how this can be resolved – for example by selling company shareholdings.
Written questions before the hearing
The confirmation hearings of the candidates in the specialist committees are organized by the committee chairs and the respective coordinators of the parliamentary groups. If the applicant’s area of responsibility affects several committees, the committees cooperate. If the work of other committees is only affected, they have guest status.
Each applicant will be asked questions in good time before the hearing. The CCC asks two questions each. The first question focuses on general aptitude, commitment to Europe and independence. The second question focuses on the candidate’s portfolio and cooperation with Parliament.
The committeeresponsible asks five questions. If several committees are involved, three questionseach are permitted. The CVs and answers to the written questions are published on Parliament’s website before the hearing. Three hours are set aside for the hearings. Four hours are also possible if the portfolio is particularly complicated and several committees are involved. The sessions are broadcast live.
Coordinators evaluate performance
The evaluation of the hearings is carried out by the heads of the committees and the coordinators. They meet immediately after the end of the hearing and draw up a letter of assessment for each candidate. The votes of the coordinators representing their group in the vote are decisive. A two-thirds majority is required to give the green light. Only parliamentary groups can vote, non-attached members are excluded.
If less than two-thirds vote in favor of an applicant, additional written questions may be submitted for response and a second hearing of up to 90 minutes is possible if supported by the CoP. The evaluation letters from the committees are sent to the CCC and the CoP within 24 hours of the end of the evaluation process. The group leaders decide that the application process is complete and authorize the publication of the evaluation letters.
Parliament lets heads roll
If all candidates pass their hearings, the entire Commission could be voted on during the plenary session at the end of October. However, this is “not very realistic”, says an experienced MEP. Parliamentarians traditionally demand at least one head, if only to demonstrate their strength to the Commission and the member states. This time, the Parliament could also let several candidates fall through. Not only the Hungarian Olivér Varhélyi is considered a shaky candidate. Liberals and Socialists are also forming opposition to the Italian Fratelli candidate Raffaele Fitto.
If Parliament rejects an applicant, the new Commission could not start until Dec. 1. The government concerned would have to nominate another name, which would be heard again. However, the next plenary week for the final vote is not scheduled until the end of November.
Translation missing.
MFF: How the EU Commission is campaigning for a more effective budget
At the annual meeting of the think tank Bruegel, which took place this week in Brussels, senior Commission officials offered an insight into the preparatory work for the next long-term EU budget. The Commission will present a first proposal for the MFF from 2028 to 2034 as early as summer 2025.
At the same time, officials are preparing proposals for action for the new Commission. The course for the new MFF is therefore already being set. It is clear that the Recovery and Resilience Facility (ARF) will play a major role in this. It has increased the EU budget in recent years from the usual one percent to the current 1.7 percent of the EU GDP. “The question of the size [of the MFF] is always complex, but I think it will be even more complex this time”, said Stéphanie Riso, Director-General for the Budget.
EU funds should be more closely linked to national reforms
In addition to the size, there are also design issues where Riso wants to incorporate findings from the ARF. For example, the disbursement logic of linking EU funds to reforms in the member states: “This is a very interesting feature for the new budget”, said Riso, as this approach has strengthened the link between EU priorities and national priorities.
Financing via joint debt is also interesting. Although Riso emphasized that the borrowing was conceived as a one-off procedure, she pointed out what she sees as the positive effects on the European capital market. “With this debt, we also have a new, very secure, very liquid safe asset to the capital market”, which would certainly also support the development of the Capital Markets Union.
Another lesson from the ARF is that the EU budget can be used as a crisis management tool. However, this can only work in the new MFF if it becomes simpler and more flexible. “We have become too complex”, complained Riso. There are now 52 programs, some of which pursue the same goals, but with different funding criteria and reporting rules. “It would help to have uniform rules and a single plan per country that combines reforms with investments”, she said, referring to the ARF.
Commission would have more powers in ARF logic
However, there are also reservations about this development. States and federal states that currently receive a lot of cohesion funds see their interests threatened if the money is tied to new conditions. In addition, the ARF methodology strengthens the Commission’s position vis-à-vis national governments. This is because the agreed reforms and measures must be approved and monitored by the Commission.
In addition, the reconstruction fund itself isalso being criticized because its implementation is being delayed. Last Monday, the EU Court of Auditors criticized this delay in implementation in the member states in a report and warned that the delays were jeopardizing the achievement of the fund’s objectives.
Verwey defends himself against criticism of ARF implementation
At the Bruegel conference, another EU chief official defended himself against this criticism. “The reporting on the absorption of the ARF was too negative”, complained Maarten Verwey, Director-General of the Directorate-General for Economic and Financial Affairs.
The Court of Auditors’ report only refers to the period up to 2023, which is why Verwey emphasized: “We have seen that implementationhas picked up speed this year and we expect to be well over 300 billion [euros in RRF funds disbursed] by the end of the year.” While this is still slightly below the disbursement progress that had been hoped for, it is still much faster than any EU budget instrument that has come before.
The interpretation of the ARF’s success or failure will be a tough battle. After all, whether the EU Commission can transfer elements of the recovery fund to the new MFF will depend, among other things, on whether the recovery fund is considered a success or not. “Proving that [the recovery fund] has worked is essential for any discussion we will have in the future about new economic instruments”, said Eurogroup President Paschal Donohoe in Brussels.
EU-Haushalt
EU-Monitoring
Sept. 9, 2024; 2:30-6:30 p.m. Meeting of the International Trade Committee (INTA) Topics: Debate with the Commission on the negotiations on the plurilateral WTO agreement on e-commerce, debate with Sabine Weyand (Director-General of DG Trade, Commission).Draft agenda
Sept. 9, 2024; 3-6:30 p.m. Meeting of the Committee for Public Health (SANT) Topics: Exchange of views between members of the SANT subcommittee on “Public health in the 10th parliamentary term of the European Parliament”.Draft agenda
Sept. 9, 2024; 3-6:30 p.m. Meeting of the Committee for Regional Development (REGI) Topics: Exchange of views with Commissioner Ferreira on cohesion policy, exchange of views with the representative of the Committee of the Regions on cohesion policy.Draft agenda
Sept. 10, 2024 ECJ ruling on abuse of dominant position – preferential treatment of own price comparison service Topics: The European Court of Justice (ECJ) decides whether Google must pay a fine of 2.42 billion euros due to the possible abuse of a dominant market position as a search engine operator.Legal remedy
Sept. 11, 2024 Weekly commission meeting Topics: Report on the state of the Energy Union. Info
Sept. 13-14, 2024 Informal meeting of economics and finance ministers Topics: Sustainable financing of the green transition, Impact of demographic change on public debt sustainability, New financing options to support low-income countries in their response to global challenges.Info
Sept. 13, 2024 Euro Group Topics: The Economics and Finance Ministers meet for consultations.Info
News
Market power of farmers: Where von der Leyen sets different priorities
Now that the results of the Strategy Dialogue on Agriculture have been published, it is clear that EU Commission President Ursula von der Leyenis focusing much more strongly on the issue of market powerthan the panel of associations whose recommendations are actually to be incorporated into her plans for the new term of office.
“We have to take a close look at the supply chains“, emphasized von der Leyen at the presentation of the final reporton Wednesday. The fact that companies are sometimes systematically forced to sell below production costs is unacceptable. The CDU politician had already highlighted the issue in her candidacy speech to the European Parliament.
Strategy dialog focuses on competitiveness and cooperatives
In contrast, theproposals of the strategy dialog on market powerremain quite cautious. In addition to farmers’ representatives and NGOs, the committee also included representatives from the food industry and retail sector, who agreed on a compromise text by consensus. This text also calls for the position of farmers in the supply chain to be strengthened. However, it does not recommend stricter rules for buyers; in terms of unfair trading practices, existing EU law should merely be implemented.
Instead, the stakeholder committee is focusing on farmersbecoming more competitive: By working together with other farms, for example by sharing machinery, and through new technologies, they should reducetheir production costs. Politicians should contribute to this by removing legal hurdles and creating further training opportunities.
EU Commission plans to amend the Common Market Organization
At the same time, cooperatives should bestrengthened in order to improve the market power of farmers, the strategy dialog demands. However, the committee has left the specific measures open. The Commission has already addressed the issue: It expects to propose changes to the Common Market Organization in the autumn. It is expected that this will simplify the legal conditions for cooperatives.
The step is part of a non-binding roadmap to strengthen the market power of farmers, which the EU Commission presented at the beginning of the year and to which von der Leyen referred again on Wednesday. This also provides for an evaluation of the Unfair Trading Practices Directive, which, if necessary, should lead to its reform. jd
Europäische Kommission
Air freight cartel: Advocate General rejects objections
The Advocate General at the European Court of Justice, Athanasios Rantos, has proposed that the appeals of twelve airlines against judgments of the General Court of the European Union against an air cargo cartel be dismissed. Only in the case of SAS Cargo Group should the judgment be partially set aside and referred back for reconsideration. At issue is the amount of the fine imposed on SAS.
The proceedings relate to a decision by the European Commission in 2017, which uncovered and sanctioned a far-reaching cartel in the air freight sector. Between 1999 and 2006, numerous airlines, including Air France, Lufthansa and Singapore Airlines, cooperated in price-fixing agreements on fuel surcharges, security surcharges and the refusal to pay commissions on surcharges. The discovery of the cartel triggered a wave of outrage at the time: It was considered one of the most serious cases of market manipulation in the European aviation market and highlighted the challenges in the fight against illegal agreements in global industries.
Critics criticize long duration of proceedings
After several years of investigations, the Commission’s anti-trust watchdogs imposed fines totaling almost €800 million. The Commission spared Lufthansa because it had initiated the proceedings in the first place as a key witness. However, it had to settle civil claims, for example against Deutsche Bahn.
Observers saw the decision as a strong signal against competition law infringements. At the same time, critics emphasized that the complexity of the case and the long duration of the proceedings revealed weaknesses in European competition law. The airlines concerned lodged an appeal and disputed both the Commission’s jurisdiction and the amount of the penalties imposed.
Advocate General Rantos is now largely backing the Commission. He argues that the agreements had a significant impact on the EU market and that the sanctions were justified. For SAS Cargo, however, he sees possible errors in the calculation of the penalty and recommends a new assessment by the court. A final decision by the European Court of Justice is expected in the coming months. vis
Wettbewerbspolitik
Google: Advocate General sees possible infringement of competition law with Android Auto
The Advocate General of the European Court of Justice, Laila Medina, accuses Google of a possible infringement of competition law. The reason for this is the company’s decision to deny third parties access to the Android Auto platform. Specifically, it concerns Google’s refusal to allow the Juice Pass app from the company Enel X on Android Auto. The app offers services for charging electric vehicles.
The background to this is a dispute that goes back to the decision of the Italian competition authority. It was found that Google had abusedits dominant market position by obstructing the release of the Juice Pass app on Android Auto. In 2018, Enel X had asked Google to make the app compatible with Android Auto, which Google refused, citing security concerns and a lack of resources. Enel X then brought an action before the Italian Council of State, which referred the case to the European Court of Justice.
Android Auto must not discriminate against third-party providers
In her Opinion, the Advocate General made it clear that the usual criteria for a dominant company to refuse access do not apply here. According to Medina, these so-called Bronner conditions do not apply, as the Android Auto platform was not developed exclusively for Google, but is intended to accommodate apps from third-party providers. This means that Google is abusing its position if it refuses, delays or hinders access for the app and this behavior is not objectively justified.
Such a justification could only exist if access were technically impossible or could impair the performance of the platform. According to the Advocate General, Google must ensure that third-party providers are not discriminated against as long as the access requirements are reasonable and feasible.
Google must expect considerable consequences
The judgment of the European Court of Justice is expected at a later date. The Opinion is not binding on the Court of Justice. Nevertheless, it often follows them. Google must then be prepared for several consequences:
Obligation to open their platform
Fines and sanctions
Change in business practices
A precedent for further cases
Possible lawsuits from other third-party providers
Overall, a ruling against Google could require significant changes in market behavior and a realignment of the platform strategy in order to meet the requirements of competition law. vis
Wettbewerbsverfahren
Artificial intelligence: Commission signs Council of Europe framework convention
On Thursday, the Commission signed the Council of Europe Framework Convention on Artificial Intelligence (AI), Human Rights, Democracy and the Rule of Law on behalf of the European Union. Věra Jourová, Vice-President of the Commission for Values and Transparency, signed the world’s first internationally binding convention on AI in Vilnius.
“We must ensure that the increasing use of AI preserves our norms rather than undermining them”, said Marija Pejčinović Burić, Secretary General of the Council of Europe. The AI Convention is “a strong and balanced text”, which is the result of an open and inclusive approach, characterized by diverse and expert perspectives. As an open treaty, it has a potentially global reach.
Other countries around the world can join in
Not only member states of the Council of Europe can become part of the AI Framework Convention. It is also open to third countries. In addition to the European Union, the United Kingdom, Norway, Iceland, Georgia, the Republic of Moldova, Andorra and San Marino, the USA and Israelhave also signed the AI Convention today.
“We also need legally binding rules for the development and use of AI at a global level. This is the only way we can succeed in protecting our fundamental values – human rights, democracy and the rule of law – while at the same time promoting progress and innovation”, said State Secretary Angelika Schlunck from the Federal Ministry of Justice. The Council of Europe’s AI Convention is an integral part of the development of international AI governance, which Germany is supporting to a large extent.
Principles for trustworthy AI
By signing the agreement, the EU is committing to the human-centered and safe use of AI. The agreement is fully compatible with EU law and the European AI Act, the Commission announced. The AI Act is the first comprehensive AI regulation worldwide. The EU, represented by the Commission and with the support of the Member States, was very actively involved in the negotiations on the AI Framework Convention, it added.
The AI Framework Agreement prescribes principles for trustworthy AI, such as transparency, accountability and data protection. It supports the development of safe innovations through regulatory sandboxes and calls for greater documentation and oversight of AI systems. It also provides for specific measures to prevent discriminatory practices and ensure the integrity of democratic processes. The agreement contains exceptions for research and development and for national security.
The EU Commission is now planning to draw up a proposal for a Council decision on the agreement. The European Parliament should also give its consent before the agreement finally enters into force. vis
Künstliche Intelligenz-Verordnung
Energy networks: Renew wants to redistribute EU funds
The Liberals in the EU Parliament are aiming for an own-initiative report on energy networks. A decision could already be made at a meeting of the coordinators of the Industry Committee next week, French MEP Christophe Grudler told Table.Briefings on Thursday. Grudler is the ITRE coordinator for the Renew Group.
Grudler wants a redistribution of the money from the Connecting Europe Facility (CEF), the most important, but still underfunded EU fund for cross-border energy projects. “If very expensive projects that have already been selected take a long time and make no progress, we should redirect themoney to more efficient projects instead“, said Grudler. ber
Erdgas
Hungary: CRRC builds locomotive plant
The cooperation between the Hungarian company Acemil and the Chinese rail vehicle manufacturer China Railway Rolling Stock Corporation (CRRC) could now see the creation of a separate plant in Hungary to supply the European market. This was reported by the industry platform Railway Gazette.
Acemil signed a cooperation agreement with CRRC ZELC, a subsidiary of the Chinese state-owned group, in May of this year. According to the report, the production facilities will be operational next year. The two companies also plan to set up a training and R&D facility.
CRRC ZELC primarily manufactures shunting and freight locomotives. These are now also to be produced in Hungary for the European market: The main products that CRRC ZELC wants to manufacture for the EU market are mainline and shunting locomotives, electric multiple units and double-decker trains. CRRC ZELC and Acemil assume that all four product lines could be manufactured in Hungary.
By jointly manufacturing in the EU with Acemil, CRRC ZELC can also accept larger tenders without becoming subject to the Foreign Subsidies Regulation, which monitors subsidies from third countries within the EU. In Bulgaria, another CRRC subsidiary, CRRC Qingdao Sifang Locomotive, had already withdrawn from a tender after the EU Commission launched an investigation. ari
