Written by Marie Lecerf.
People with disabilities still find it hard to participate in elections in the European Union. This infographic compares national practices aimed at helping people with disabilities exercise their electoral rights in the EU.
Current situationGetting involved in political life: standing for elected office, joining a political party, or following the news; is at the heart of what it means to live in a democracy. People with disabilities are active citizens, keen to participate given the right opportunities. However, they face legal, administrative, institutional and accessibility barriers to taking part.
Several EU initiatives encourage people with disabilities to participate in politics. With the 2024 European elections on the horizon, the European Parliament is committed to helping them take part. In May 2022, Parliament adopted a proposal to repeal the 1976 European Electoral Act and replace it with a new Council regulation on electing Members of the European Parliament by direct universal suffrage. The proposal is still under discussion within the Council. This would harmonise European election rules, notably ensuring that everyone can access information and vote on an equal basis, including those with disabilities. The new rules would mean national governments would have to ensure people with disabilities get: equal access to electoral materials, voting facilities and polling stations (Article 7); accessible postal voting; advance physical voting, proxy voting, and electronic and internet systems for voting (Article 8).
Read this ‘at a glance’ note on ‘People with disabilities and the European elections‘ in the Think Tank pages of the European Parliament.
Written by Clare Ferguson with Sara Van Tooren.
Parliament returns to full swing for the second plenary session of February 2024, with a packed agenda. Against a backdrop of intense political and geopolitical issues, Members are expected to debate and vote on a number of important files. As we enter the third year of Russia’s unprovoked aggression, motions for resolutions on support for Ukraine are scheduled for consideration. Ahead of International Women’s Day on 8 March, Parliament welcomes several prominent women: Christine Lagarde, President of the European Central Bank and Nadia Calviño, President of the European Investment Bank are scheduled to attend debates on annual reports on the ECB and EIB. However, the most poignant is set to be an address on Wednesday by Yulia Navalnaya, widow of the assassinated Russian opposition activist and 2021 Sakharov Prize laureate Alexey Navalny. Following Council and Commission statements on Navalny’s murder and the need to support Russian political prisoners, Members are due to debate and vote on a motion for resolution.
Revising the EU’s financesParliament has repeatedly demanded urgent revision of the EU’s long-term budget to face current challenges, not least to help Ukraine. In a joint debate on Tuesday, Members are due to consider a report from its Committee on Budgets (BUDG), one joint report from BUDG and the Committee on Foreign Affairs (AFET), and another joint report from BUDG and the Committee on Industry, Research and Energy (ITRE). BUDG recommends granting consent to the agreement reached on a first-ever revision of the EU’s multiannual financial framework (MFF). The revision should help to manage the costs of borrowing to help the EU recovery under the Next Generation EU initiative and provide €21 billion of additional funds, including €17 billion much-needed assistance for Ukraine.
With the MFF revision in place, Members are also set to consider the political agreement reached by BUDG and AFET with the Council to establish the Ukraine Facility, and so support Ukraine’s recovery and its path to EU accession. Up to €50 billion in grants and loans would be available up to 2027. Parliament has insisted that the Facility allow the use of frozen Russian assets to finance grants, and that Russia be ‘held fully accountable and pay for the massive damage caused by its war of aggression against Ukraine’. Parliament also secured enhanced democratic scrutiny of the Facility through strengthening the role of the European Parliament and the Verkhovna Rada.
The EU also intends to allocate more funding from the MFF to projects that develop or manufacture critical technologies and strengthen their value chains, via a new platform for strategic technologies for Europe (STEP). Despite Parliament’s demands for €13 billion for this important step in boosting the EU’s global position, the provisional agreement set for Members’ consideration allocates only €1.5 billion to the European Defence Fund.
EU in a new worldWith an obvious focus on Russia’s war on Ukraine and the EU’s response, Parliament is due to consider the 2023 annual reports from the AFET committee on the EU’s common security and defence policy (CSDP) and common foreign and security policy (CFSP), in a joint debate scheduled for Wednesday morning.
In the face of new autocratic threats to the rules-based international order and peace, the AFET committee’s report on the CFSP outlines four major challenges: Russia’s war against Ukraine; the need for a genuine European defence union; stronger defence of rules-based multilateralism, and bolstering strategic partnerships such as through NATO. This year’s CSDP report reflects the seismic changes in EU defence policy since 2022. AFET’s demands include increased parliamentary scrutiny of the CSDP, to ensure increased EU defence spending is effective and a call to appoint a Defence Union Commissioner in the next European Commission. AFET also once again underlines the need for a Security and Defence Committee with full legislative and budgetary responsibilities.
A third AFET report scheduled for consideration on Tuesday reviews EU efforts to promote human rights and democracy in 2022, outlined in a report from the High Representative of the Union for Foreign Affairs and Security Policy (HR/VP). This year’s report concurs with the HR/VP’s assessment of a deteriorating international situation, with violations of international law and a continued rise in authoritarianism and threats to democracy. The AFET report calls for measures to strengthen EU instruments in support of human rights defenders, civil society and media organisations; action to tackle corruption; and application of EU global human rights sanctions.
In a joint debate scheduled for Thursday morning, Members are due to consider a recommendation from the AFET and International Trade (INTA) committees to grant consent to concluding two EU-Chile agreements. A new advanced framework agreement (AFA) would modernise and replace the existing Association Agreement governing relations between the EU and Chile, with an interim trade agreement to be put in place until the AFA’s ratification is complete. Parliament has succeeded in including strong parliamentary diplomacy within the agreements, which will also mean 95 % of EU-Chile trade will be duty free, and EU companies will have better access to raw materials from Chile.
The EU fishing fleet already has access to rich tuna fishing grounds in the Seychelles through a sustainable fisheries partnership agreement. On Thursday afternoon, Members are set to vote on a recommendation from Parliament’s Committee on Fisheries (PECH) to grant consent to the conclusion of a new six-year agreement to continue reciprocal fisheries access for Seychelles vessels to the waters of the French overseas departments of Mayotte.
A balanced environment for everyoneOn Monday evening, Parliament is expected to debate a political agreement reached with the Council on measures to tackle serious, organised environmental crime more effectively. The penalties for such activities will range from three to ten years in prison, with companies fined based on their annual worldwide turnover, or fixed amounts up to €40 million, attesting to the seriousness of such crimes – a choice left to EU governments. The Committee on Legal Affairs (JURI) has succeeded in including a new offence relating to highly toxic mercury and mercury products to the list of criminal offences.
At Tuesday lunchtime, Members vote on a provisional agreement reached in trilogue on the proposed EU nature restoration law, aimed at returning degraded ecosystems to health across the EU. The provisional agreement supports this objective, with time-bound and quantitative targets for ecosystems. In line with Parliament’s demands, EU national authorities should prioritise Natura 2000 sites until 2030. The co-legislators also agreed on derogations for renewable energy and defence projects. As Parliament requested, an ’emergency brake’ should allow suspension of agricultural ecosystem restoration for up to one year under exceptional circumstances impacting EU food production.
In a debate scheduled for Tuesday afternoon, Members are set to consider a provisional agreement reached with the Council on revising the legislation on geographical indications (GIs) for wine, spirit drinks and agricultural products in a single legal act. GIs help European producers obtain fairer prices for quality products, yet the process could be speedier and more robust. The agreed text would simplify and speed-up registration, as well as strengthen removal of illegal use and provide better protection online. To maintain a focus on producer needs rather than intellectual property, the EU Intellectual Property Office (EUIPO) will provide technical assistance only, rather than managing the scheme.
In a joint debate, also scheduled for Tuesday afternoon, Members will consider a number of first-reading reports from the JURI committee on legislative proposals concerning intellectual property rights on products affecting our environment. In particular, they aim to update and harmonise rules on supplementary protection certificates, which extend patent protection to compensate for lengthy compulsory testing and trials to ensure such products are safe before they can come to market. The first two concern supplementary protection certificates for plant protection products. Two more cover supplementary protection certificates for medicinal products.
As concerns Parliament’s negotiating position on the standard essential patents regulation, Members are also due to vote on a JURI committee report, setting Parliament’s first-reading position. Standard essential patents protect technology incorporated in a standard (5G and the internet of things, for instance). The JURI report introduces several amendments to the Commission’s proposal, including: tasking the EUIPO competence centre with selection and training of evaluators; creating a Licensing Assistance Hub to help small businesses for free; and requesting that the Commission review the measures’ impact on competitiveness.
While detergents and surfactants can improve health and hygiene, they may also pose health and environmental risks. The EU is proposing to revise the Regulation on detergents and surfactants to ensure detergents using microorganisms are safe and to introduce a digital label to display mandatory consumer information. Members are set to debate an ENVI committee report on Monday evening, which enlarges the list of restricted microorganisms and adds specific rules for detergent refills. The report also adds a new article specifying that detergent safety be established without testing on animals.
Protecting EU consumers and businessesApart from the environmental imperative, the EU is keen to protect consumers and businesses against wholesale energy market manipulation. Aimed at avoiding a repeat of the recent energy crisis, Members are set to consider a provisional agreement with the Council, endorsed by the ITRE committee on Wednesday. Taking elements of Parliament’s position into account, the agreement reinforces the role of the Agency for the Cooperation of Energy Regulators in inspections and reporting. The Agency will also have the power to impose penalties where there is a suspicion of market abuse affecting at least two EU countries. Parliament’s negotiators secured the inclusion of oversight mechanisms on liquefied natural gas (LNG) prices.
If you have ever used an online platform to rent holiday accommodation direct from a host, you may have wondered how such platforms collect and share data. Platforms connecting hosts with guests help tourists find affordable places to stay and enable people to earn extra income, but also contribute to a lack of affordable accommodation and unfair competition in the tourism sector. On Wednesday evening, Members are set to consider a provisional agreement with the Council, endorsed by the Committee on Internal Market and Consumer Protection (IMCO), on a proposal to regulate data use by the sector. To increase consumer confidence, the co-legislators agreed that registration tools should be available online for free, and that hosts must provide specific information, which online platforms would then be responsible for checking. Each EU country would set up a single digital point for receiving the data collected.
While road safety has greatly improved in the EU, this is less the case for vulnerable users. To continue to improve the situation, the EU is working towards zero deaths on EU roads by 2050. The proposed revision of the Driving Licence Directive is one step in this direction. Members are set to debate a report from the Committee on Transport and Tourism (TRAN) on Tuesday morning, which approves the proposed stricter rules for novice drivers and introduction of a digital driving licence. However, the TRAN committee wishes to see medical certification, rather than self-assessment, of fitness to drive when obtaining or renewing a driving licence. To mitigate driver shortages, TRAN also wants to lower the minimum age for coach, bus and truck driving licences to 18 years for certified professional drivers.
Investors are often discouraged from making investments in another EU Member State due to inefficient tax relief procedures. A proposal to move to faster and safer tax excess relief (‘FASTER’), aims at encouraging growth with more efficient and secure withholding tax procedures in the EU for cross-border investors and tax administrations. On Wednesday afternoon, Members are due to vote on a (non-binding) Committee on Economic and Monetary Affairs (ECON) report, which strongly supports the proposal.
100 days to the 2024 European electionsWith just over 100 days to go to this year’s European elections, on Monday evening Members consider a provisional agreement reached (after several rounds of trilogue meetings) on evolving campaign techniques that pose new challenges on transparency and targeting in political advertising. The agreement seeks to help voters detect political advertisements and identify who is behind them. It sets strict limits on targeting and delivery techniques and enhances personal data protection in online political advertising. It bans profiling, using the data of people who are under voting age, and non-EU based entities financing political advertisements in the EU in the three months prior to an election or referendum. While the new rules will only apply 18 months after their entry into force, those on the non-discriminatory provision of cross-border political advertising (including for European political parties and political groups) would take effect in time for the 2024 European Parliament elections.
Judicial independence, the anti-corruption framework, media freedom and checks and balances are all vital to a thriving democracy. Following Parliament’s demands, the Commission launched an annual rule of law review cycle in 2020. On Wednesday afternoon, Members are due to consider a Civil Liberties, Justice and Home Affairs (LIBE) Committee motion for a resolution on the Commission’s fourth annual rule of law report. The LIBE report highlights that antisemitism, islamophobia and LGBTIQ+ rights have not been addressed, and calls for a more vigorous approach to infringement proceedings. It also reiterates Parliament’s demands to add a fundamental rights pillar, establish a panel of independent experts, and expand the report’s scope to candidate countries.
FURTHER READINGWritten by Marcin Grajewski.
The European Commission’s President, Ursula von der Leyen, announced on 16 February that she would soon put forward a strategy for the European defence industry, designed to strengthen military production and arms supply.
Russia’s full-scale attack on Ukraine two years ago reignited the EU’s push towards strengthening its defence capabilities and cooperation. The European Parliament and President von der Leyen, among others, believe that the EU should strive towards establishing a fully fledged ‘European Defence Union’, following on from a number of ground breaking initiatives and significant growth in military spending.
The discussion on the need for the EU to become more self-reliant in defence has intensified in response to comments made by Donald Trump, the presumptive Republican nominee for the 2024 US presidential election, who suggested that the United States might disregard NATO’s Article 5 collective defence clause and not protect from a potential Russian invasion those NATO allies who are not spending enough on defence.
This note gathers links to recent publications and commentaries from many international think tanks on EU defence issues. Earlier analyses of Russia’s war on Ukraine can be found in a previous edition of the ‘What Think Tanks are Thinking’ series.
Four NATO defense priorities for the upcoming Washington summit
Atlantic Council, February 2024
NATO should be ambitious with its new Southern Flank Strategy
Atlantic Council, February 2024
Trump courts real danger with his invitation to attack NATO
Brookings Institution, February 2024
Is defense a priority across Europe?
Carnegie Europe, February 2024
As Trump threatens NATO, is it time for Europe to get its act together?
Chatham House, February 2024
Donald Trump says he will not protect “delinquent” NATO members
Council of Foreign Relations, February 2024
Strengthening the political credibility of NATO extended nuclear deterrence
Egmont, February 2024
As Putin and Trump threaten from East and West, Europe must stand up for itself
European Council on Foreign Relations, February 2024
The EU and military AI governance: Forging value-based coalitions in an age of strategic competition
Finnish Institute of International Affairs, February 2024
La Défense de l’Europe par les Européens: Un mythe, une nécessité, une ambition, un espoir?
Fondation Robert Schuman, February 2024
NATO turns 75 and must deliver
German Council on Foreign Relations, February 2024
Trump-proofing Europe
German Council on Foreign Relations, February 2024
How the prospect of a second Trump presidency is already shaping geopolitics
Atlantic Council, January 2024
How Europe can escape its structural energy weakness amid great power competition
Atlantic Council, January 2024
UK-EU security cooperation after Ukraine
Carnegie Europe, January 2024
Germany’s paralysis holds back Europe
Carnegie Europe, January 2024
The EU rapid deployment capacity: Political priorities and real needs
Centre for Eastern Studies, January 2024
Can European defence take off?
Centre for European Reform, January 2024
Campaign roundup: Is NATO on the ballot in 2024?
Council of Foreign Relations, January 2024
The EU and the Red Sea: Now this is geopolitics
Egmont, January 2024
What future European defence and technological industrial basis (EDTIB) do we want/need? The Belgian case
Egmont, January 2024
Home alone: The sorry state of Europe’s plans for self-defence
European Council on Foreign Relations, January 2024
EU-NATO relations in a new threat environment: Significant complementarity but a lack of strategic cooperation
Finnish Institute of International Affairs, January 2024
The EU will become defensive, or superfluous
German Council on Foreign Relations, January 2024
75e sommet de l’OTAN à Washington : Un cadeau empoisonné pour l’administration Biden
Institut français des relations internationales, January 2024
From “as long as it takes” to “as long as we can”: will the West abandon Ukraine?
Österreichisches Institut für Internationale Politik, January 2024
The US and NATO must clamp down on Russian fossil fuels to end the war in Ukraine
Atlantic Council, December 2023
Expanding NATO’s competitive mindset: Deterring and defending across physical and virtual domains
Atlantic Council, December 2023
Arsenal of democracy: Integrating Ukraine into the West’s defense industrial base
Carnegie Endowment for International Peace, December 2023
Military exercises on NATO’s north-eastern flank. Moving towards intensification and synchronisation
Centre for Eastern Studies, December 2023
Future-proofing EU security and defence cooperation in the Indo-Pacific: Doubling down with friends
Centre for European Policy Studies, December 2023
Ukraine: We are at a ‘Demosthenes moment’ in Europe
Egmont, December 2023
Guns. Lots of guns: EU strategic responsibility and the European defence industry
European Union Institute for Security Studies, December 2023
Stronger resilience through cooperation in the Sahel: Recommendations for a coordinated EU foreign and security policy in a multi-polar landscape
Foundation for European Progressive Studies, December 2023
The Israel-Hamas war two months on: what is it telling us about the new world order?
Friends of Europe, December 2023
Transatlantic cooperation on Ukraine: How Europe could respond to uncertainty over US assistance
German Council on Foreign Relations, December 2023
What’s at stake in the EU elections: Security and defense
German Marshall Fund, December 2024
Ukraine between NATO and the EU
Italian Institute for International Political Studies, December 2023
The future of multilateral peacebuilding and conflict prevention
Atlantic Council, November 2023
Vanishing partners: The implications of the Sahel coups for the EU’s security policy
Centre for Eastern Studies, November 2023
Comment continuer à renforcer notre agenda européen de souveraineté et d’indépendance?
Confrontations Europe, November 2023
The Global Gateway at two: Implementing EU strategic ambitions
European Centre for Development Policy Management, November 2023
Striking absence: Europe’s missile gap and how to close it
European Council on Foreign Relations, November 2023
Building weapons together (or not): How to strengthen the European defence industry
European Union Institute for Security Studies, November 2023
Franco-German leadership in European security: Engine in reverse gear?
Finnish Institute of International Affairs, November 2023
Évolution de l’OTAN : Poursuite ou accélération du processus de transformation?
Institut de Recherche Stratégique de l’Ecole Militaire, November 2023
Europe is stuck over the Israel-Hamas war
Istituto Affari Internazionali, November 2023
NATO nuclear adaptation: Rationales for expanding the force posture in Europe
Polish Institute of International Affairs, November 2023
Freedom must be better armed than tyranny: Boosting research and industrial capacity for European defence
Wilfried Martens Centre for European Studies, November 2023
Strategic interdependence: Europe’s new approach in a world of middle powers
European Council on Foreign Relations, October 2023
Europe’s broken order and the prospect of a new Cold War
International Centre for Defence and Security, October 2023
Read this briefing on ‘European defence, strategic autonomy and NATO‘ in the Think Tank pages of the European Parliament.
Written by Lauro Panella, Margarida Arenga, Marco Centrone, Christof Cesnovar, Meenakshi Fernandes, Aleksandra Heflich, Lenka Jančová, Christa Kammerhofer-Schlegel, and Jérôme Saulnier.
Why this study?Since the signature of the Treaty of Rome in 1957, European integration has ensured peace and advanced democratic governance, environmental protection, innovation and economic growth. Efforts to create the euro and to strengthen the single market are credited with raising incomes by at least 6 %.
Yet, Europe could offer more to ensure an effective response to cross-border challenges such as climate change, widening social inequality and wars that affect people’s daily lives and future prospects. The European Union (EU) could take further action to boost the provision of public goods, generate efficiency gains, reduce administrative costs and integrate the impacts of externalities.
This study applies the cost of non-Europe methodology to assess the potential benefits of more EU action in 10 policy areas. It considers different intensities and forms of EU action, from legislative to non-legislative, budgetary spending, savings for national budgets, investment and guarantees, assistance, supervision and enforcement action or involving citizens and communication.
What are the key findings?This study investigates where the greatest opportunities lie for more EU action – which has the potential to generate up to €3 trillion each year by 2032, or about 18 % of the EU’s 2022 GDP. This is equivalent to €6 700 of potential benefits of greater EU action per citizen per year in the EU.Theoretical foundations and practical considerations, EPRS, European Parliament, October 2023.
The benefits reflect economic gains, as well as gains in terms of social and fundamental rights, and also protection of the environment. The benefits of more EU action could take up to 10 years to realise, depending on the policy area and the specific measures underlying the EU action.
Based on a mapping of the cost of non-Europe, the study identifies 10 key proposals for EU action (one per policy area analysed) that are most relevant to realising Europe’s untapped potential. Each key proposal is supported by resolutions and reports adopted by the European Parliament during the 2019-2024 legislature. Findings from this study can contribute to the setting of EU policy priorities in the 2024-2029 legislature.
What are the conclusions?The costs of EU inaction are high. Citizens, civil society and businesses are paying the costs of a weak Europe. They pay for it in terms of lower income and revenues, lower living standards, and lower quality of life.
Potential benefits of ambitious common EU action in 10 policy areas Source: EPRSMore Europe does not imply a reduction in benefits for Member States. EU action could take many forms, as illustrated above. Such action naturally need not replace, but could rather enhance the action taken by Member States themselves.
The benefit of more EU action could be greater and more sustainable when providing public goods, such as clean air and good working conditions, with a holistic approach. For example, energy policy should consider low-income and rural populations. Social policy must account for the economic situation and ensure that no-one is left behind. Economic reforms should benefit all citizens.
Read the complete study on ‘Ten ways that Europe could do more for you – Mapping the cost of non-Europe‘ in the Think Tank pages of the European Parliament.
Written by Sebastian Clapp and Jakub Przetacznik.
Two years after the start of the full-scale Russian invasion of Ukraine, the war appears to be at a stalemate. While Ukraine successfully recaptured large parts of its territory in the summer and autumn of 2022, the 2023 counter-offensive was not successful in liberating the whole of Ukraine and the war has turned into one of attrition. The European Union and United States have provided Ukraine with substantial military assistance, but continued military support is facing political challenges in both the EU and the US and its fate remains uncertain.
Military situation in Ukraine Figure 1 – Military situation in UkraineThe initial attack on Ukraine, from Belarus, Crimea, and the entire Russia-Ukraine border, caused Ukraine to temporarily lose control of a vast swathe of territory, including around Kyiv. The Ukrainian army recaptured a significant amount of territory in the summer and autumn of 2022; most importantly, the Russian army no longer occupies the north-east of Ukraine or any regional capital, nor does it fully occupy any region it claims, except Crimea. The occupation continues along the Sea of Azov and around 165 km westwards from Crimea. The 2023 counter-offensive did not succeed in its initial strategic target – to reach the Sea of Azov, separate the Russian army in Crimea from the rest of the country, and finally liberate the whole of Ukraine.
The result is the current stalemate on the frontline, with repetitive battles of attrition for small, but important, cities and villages, such as Bakhmut, Kupiansk and Avdiivka. One reason is that Russia managed to fortify its positions on the 1000 km-long southern frontline. The fortifications include, inter alia, trenches and anti-tank ‘dragon’s teeth’ and landmines. Another reason is the delay in delivering military equipment. The destruction of the Kakhovka Dam in June 2023 also had military implications and limited the Ukrainian army’s options. The fighting is currently concentrated in the Donbas, and the frontline is barely moving. Russia is also shelling Ukrainian targets, especially cities, across the country. Donated air defence systems have improved the situation, but every day civilians are victims of shelling and Ukraine’s infrastructure is being destroyed. The Ukrainian army had succeeded in destroying 20 % of Russia’s Black Sea fleet by December 2023, undermining Russia’s position and forcing it to move parts of its fleet from Crimea to official Russian territory. This allowed Ukraine to restart grain exports through ports under Ukrainian control, and to export its 2023 harvest.
In February 2024, President Volodymyr Zelenskyy removed Valerii Zaluzhnyi from his position as head of the Ukrainian armed forces, the biggest change in the country’s military leadership since February 2022. It came after rumours that the President and General Zaluzhnyi, who has overseen Ukraine’s military campaign since the start of the war, were at odds. General Oleksandr Syrskyi was named as his replacement and tasked the army with improving planning of activities by command structures; improving logistics so as to answer soldiers’ needs; controlling the situation on every section of the frontline, keeping a balance between combat tasks and reconstituting units; and introducing new technologies and disseminating those which have proved successful (including unmanned systems and electronic warfare). However, efficient realisation of plans depends on timely delivery of Western military equipment. There are over 10 000 confirmed civilian deaths, with actual figures being considerably higher. Ukraine estimates, in February 2024, Russian army casualties at over 400 000, including at least 150 000 deaths. Ukrainian army casualties were unofficially estimated in August 2023 at 170 000-190 000, including 70 000 deaths.
EU and US military supportThe EU has mobilised €5.6 billion to reimburse Member States for providing weapons to Ukraine, both lethal and non-lethal (€28 billion including Member States’ bilateral commitments). This amount includes: €3.6 billion for military equipment, both lethal and non-lethal, for the Ukrainian armed forces; and a €2 billion ammunition package, comprising joint procurement of 155-mm calibre artillery rounds and missiles, as well as reimbursement for ground-to-ground and artillery ammunition and missiles, donated to Ukraine by Member States from existing stocks or from reprioritising existing orders. This follows a March 2023 EU pledge to provide Ukraine with 1 million rounds of artillery ammunition by March 2024, a commitment that High Representative Josep Borrell has admitted the EU will fail to meet, with only slightly more than half set to be delivered by the deadline. A further 630 000 rounds are expected to be delivered by the end of 2024; the fund being used for this is the European Peace Facility (EPF), an off-budget fund now worth €12 billion. The equipment delivered to Ukraine ranges from protective equipment and air and missile defences to highly advanced Western main battle tanks. Denmark, the Netherlands, Belgium and EU partner Norway have announced they are willing to send US-made F-16s to Kyiv, but the first batch promised by Denmark for the end of December 2023 has been delayed by at least six months. Several Member States committed to providing bilateral military assistance to Ukraine for 2024, totalling at least €21 billion (not including the Member States that have yet to send their commitments). Recently, Denmark declared it would send its entire ammunition stock to Ukraine and urged others to increase support for Kyiv.
Borrell presented the Foreign Affairs Council with a proposal in October 2023 and again in December 2023, requesting €5 billion annually for 2024-2027 in military aid to Ukraine under the EPF. This developed into a proposal for a single, non-repeatable top-up of €5 billion to the EPF, at the Foreign Affairs Council on 22 January 2024. The purpose of this was to create a ‘Ukraine Assistance Fund‘ within the EPF. At the time of writing, no agreement has been reached on this matter, as Member States disagree on how to modify the fund to better suit Ukraine’s needs and support Europe’s arms industry in fulfilling them. The eighth tranche of military assistance under the EPF also continues to be held up by Hungary. Moreover, the EU launched an EU Military Assistance Mission in support of Ukraine (EUMAM Ukraine) in November 2022. Almost 40 000 Ukrainian soldiers have been trained as of February 2024; following Member States’ agreement in January 2024, the number is expected to reach 60 000 by the end of summer 2024.
The US has given almost US$44 billion in military assistance to Ukraine, according to the Kiel Institute for the World Economy. The Biden administration has given or promised to give Ukraine a long list of defence capabilities, including advanced radar and surveillance systems, Abrams battle tanks and anti-aircraft missiles. The agreement by the Biden administration to provide Ukraine with cluster munitions caused some controversy in July 2023.
EU and US support remains essential to assist Ukraine in its defence. EU military aid to Ukraine is even more important given that continued US support is not certain after the next US election – a second Trump presidency would very likely halt aid to Ukraine – and the current ‘Congressional funding crisis‘. After months of political wrangling, the US Senate approved a long-awaited US$95 billion aid package for Taiwan, Israel, and Ukraine in February 2024; the package includes, inter alia, US$60 billion for Kyiv and US$14 billion for Israel’s war against Hamas. Republicans were split and had already voted the bill down, while Democrats supported its passage. The bill is now before the House of Representatives, where its fate is uncertain. Therefore, at the beginning of 2024, continued Western assistance to Ukraine looked uncertain, as new funding was politically stuck in the US and EU. At the 2024 Munich Security Conference, President Zelenskyy thus pleaded for continued Western support for Ukraine. Ukraine is requesting, among other things, fighter and transport jets, ammunition, battle tanks, drones and long-range missiles. According to an expert from the Council on Foreign Relations think-tank: ‘So far, the West has provided most of what Ukraine has asked for, but much more slowly and in much smaller quantities than necessary.’
European Parliament positionParliament has condemned Russia’s aggression against Ukraine from the start, and has called for increased support for Ukraine in several resolutions. In its resolution of 16 February 2023 marking one year of Russia’s invasion and war of aggression against Ukraine, Parliament called for a substantial increase in munitions deliveries to Ukraine; in 2022, Parliament had urged Member States to meet Ukraine’s need for weapons.
Read this ‘at a glance’ note on ‘Ukraine: Military state of play – February 2024‘ in the Think Tank pages of the European Parliament.
The European Parliament regularly receives enquiries from citizens about rail passenger rights in Europe.
The European Union (EU) protects the rights of people travelling by train, including setting refunds for delays, the right to up-to-date information, and assistance for people with disabilities.
Current rail passenger rightsUnder rules adopted in 2007 and updated in 2021, people travelling by train in the European Union have a number of rights. These include:
Should a dispute arise with a railway carrier, citizens have various options:
To promote safety and cross-border travel by rail, the EU established the European Agency for Railways. This agency establishes and promotes shared standards for the design of trains, train tracks and other aspects such as signalling and communication, to move towards smoother rail travel throughout the EU. The agency also promotes railway safety by conducting regular analyses, and by setting up the European Rail Traffic Management System.
Further informationKeep sending your questions to the Citizens’ Enquiries Unit (Ask EP)! We reply in the EU language that you use to write to us.
Written by Bruno Bilquin.
Almost two years since Russia began its full-scale invasion of Ukraine, EU military assistance under the European Peace Facility (EPF) is lagging. The special European Council meeting of 1 February 2024 invited the Council to agree by early March 2024 to amend the regulation establishing the EPF, in order to increase its financial ceiling.
Is the European Peace Facility entering a new phase?In October 2023 and again in December, the High Representative/Vice-President of the Commission (HR/VP) Josep Borrell proposed to the Foreign Affairs Council an envelope under the EPF of €5 billion a year for the years 2024 to 2027 for military assistance to Ukraine. At the Foreign Affairs Council meeting of 22 January 2024, this evolved into a proposal for a single, non-repeatable €5 billion EPF top-up in order to establish a ‘Ukraine Assistance Fund‘ within the EPF, to encourage EU Member States to increase their military support for Ukraine. This support remains badly needed, as Ukraine is still suffering from ‘shell hunger’, despite EU efforts and those of the international artillery coalition led by France and the United States (US). EU military aid to Ukraine is all the more necessary given the potential outcome of the next US presidential elections and the current congressional funding crisis.
Between February 2022 and 1 February 2024, the US delivered US$44.2 billion in military assistance to Ukraine. On 4 February 2024, a bi-partisan deal in the Senate proposed a $118 billion draft package pairing strengthened security on the US–Mexico border with wartime aid for Israel and other US partners, with a $60 billion envelope for Ukraine. Top Republicans in the House immediately rejected the draft; it is still under discussion since the Senate on 11 February again supported it, through a procedural vote, and on 14 February, approved it.
During their 31 January 2024 informal meeting, EU defence ministers had discussed the way ahead for EU military support to Ukraine. In his press remarks upon arrival at that meeting, the HR/VP said:
It is obviously necessary to have a clear understanding of where we are with [the provision of] ammunition. Ministers have been asked to present exactly what they have done, what they are doing, what they plan to do, in order to have a clear understanding of what has to go all together to provide Ukraine with what it needs […]. Ukraine needs more ammunition. There is a big imbalance between the fire capacity from one side and the other, and this gap has to be filled.
Indeed, according to experts, the EU is not on track to hit the one million rounds of ammunition target decided by the Council on 20 March 2023 under a three-track approach: deliveries, joint procurement and ramping-up of ammunition production. ‘We … will try to solve the issues that some Member States want to be considered in the new stage of the EPF’, the HR/VP added, mentioning the need for the EPF to shift from funding the destocking of the previous existing material to supporting the production of the European defence industry. In his press remarks following the January 2024 informal meeting, the HR/VP said that he had reiterated the urgent need to agree on further military support for the short and long term, and that the Member States and the EU had shared the following aggregated data.
Initially, the 2021-2027 multiannual financial framework (MFF) was the only point on the draft agenda of the special European Council meeting of 1 February 2024. EU leaders discussed the mid-term review of the 2021-2027 MFF, including support for Ukraine. This support consists mainly of the Ukraine Facility, a €50 billion fund, split between €17 billion in grants and €33 billion in loans, for 2024 to 2027, to help Ukraine’s recovery, reconstruction and modernisation towards EU accession. The European Council came to an agreement on the Ukraine Facility.
In his press remarks before the meeting, the HR/VP said he would urge EU leaders to increase military support for Ukraine, through the Ukraine Assistance Fund within the EPF. He also confirmed that ‘some Member States, Hungary for example’, had expressed their wish to no longer participate in the EPF, albeit without obstructing it. The leaders did not, however, reach an agreement on the Ukraine Assistance Fund. The European Council reviewed the Council’s work on military support for Ukraine under the EPF and the proposed rise in the facility’s overall financial ceiling and invited the Council to reach an agreement by early March 2024 to amend Council Decision (CFSP) 2021/509. The EPF ceiling, set at €12 billion in current prices, would receive a one-off top-up of €5 billion, based on the 22 January 2024 HR/VP proposal, which no longer includes a €5 billion ‘annual’ top-up for the four coming years, marking a drastic down-sizing of the HR/VP’s initial ambition. Decision 2021/509 establishing the EPF has already been amended twice for the first and second tracks of the ammunition plan.
The European Council also invited the Council to take into account ‘suggestions by the Member States’. This refers, inter alia, to Germany’s request for a detailed list of commitments from other Member States for military deliveries in 2024 and to reduce its own real contribution to the EPF comparatively. On 8 January 2024, German Chancellor Olaf Scholz had pointed out that Germany was, after the US, the world’s second-biggest provider of military aid to Ukraine, committed to deliver weapons and military material worth over €7 billion in 2024 alone. He had called on the other EU Member States to step up their support for Ukraine, asking them to present, by 1 February (the day of the special European Council meeting), a detailed summary of their military deliveries to Ukraine.
Lastly, the European Council reiterated ‘the urgent need to accelerate the delivery of ammunition and missiles, notably in view of the commitment to provide Ukraine with one million rounds of artillery ammunition’ and called on Member States ‘to explore all options to meet Ukraine’s needs …, including continued stock donations, redirection of existing orders and the placing of the necessary new orders, which will contribute to increasing European industry’s production capacity’.
On 27 February, Members of the European Parliament are expected to vote on a report urging Member States to approve the HR/VP’s initial proposal for a €20 billion Ukraine assistance fund within the EPF, and to accelerate ammunition deliveries from their stocks to Ukraine through the EPF.
Read this ‘at a glance’ note on ‘European Peace Facility: Continued EU military assistance to Ukraine‘ in the Think Tank pages of the European Parliament.
Written by Eszter Fay.
The development of new products and services from the convergence of digital and space technologies provides us with a space economy, or ‘space-as-a-service’.
However, the sustainability of space-based infrastructure in orbit and beyond is an emerging policy issue that is likely to become increasingly important in the coming decades. Accumulation of space debris could hinder our future exploration and exploitation of space. And in the near future, the observation of the universe from Earth could become impossible.
The space industry – mainly satellite manufacturing, support ground equipment manufacturing, and the launch industry – is growing fast. This creates environmental sustainability challenges such as the impact of re-entries, or light pollution that hinders astronomical observation, and environmental impacts on Earth itself.
How can we shape outer space economic development to save this planet? How can Europe establish, manage and protect its infrastructure in space, so humanity benefits from outer-space activity? Can Europe maintain a lead on clean space policy and technology? And can civil society help address space challenges to maximise public understanding and support for an ambitious European space strategy?
During the workshop on the ‘Future of Space – the sustainable path‘, organised by the European Parliament’s STOA Panel for Future of Science and Technology, experts from several disciplines discussed these questions with policymakers.
EU Space LawAccording to STOA Vice-Chair Ivo Hristov (S&D, Bulgaria), this debate was very timely, as the European Commission was holding a public consultation on a draft law on space, planned for adoption in early 2024. The new EU Space Law will be structured around three main pillars:
Space pollution is self-sustained. More than 8 000 space craft currently create debris by colliding with space debris orbiting the Earth. Today, 128 million objects larger than 1 mm (and of those, 34 000 are bigger than 10 cm and 900 000 bigger than 1 cm) are currently spinning through space at 7 km/sec.
Because space debris increases the light in the sky, it hampers astronomical observation and damages radio frequency, both of which need a dark and quiet sky. A 2023 United Nations report identified space debris as one of our planet’s tipping points, which could impact our lives significantly (next to a Gulf stream collapse or melting polar ice, for instance).
The European Space Agency (ESA) carries out important space debris mitigation activities, including the ‘Zero Debris Charter‘ to drive guarantees to remove satellites from orbit at the end of their life. A vehicle capable of capturing space debris is being developed in the framework of the world’s first mission to remove debris from Earth’s orbit.
Moving to sustainable space activitiesExperts present at the workshop from ESA, the European Commission and the European space community put forward elements that could enable more sustainable and fair space activities.
For more details, you can watch the event recording here and an EPRS video here.
Your opinion matters to us. To let us know what you think, get in touch via stoa@europarl.europa.eu and follow us on X at @EP_ScienceTech.
Written by Vasco Guedes Ferreira.
In an important election year for the European Parliament, the Panel for the Future of Science and Technology (STOA) demonstrated its commitment to embracing and disseminating the most recent social science on democratic participation with the 21st STOA Annual Lecture under the theme ‘Making Democracy Work for Everyone’.
Christian Ehler (EPP, Germany), Chair of STOA opened the meeting, with keynote speaker, Professor Michael Bruter, an expert in political science and European Research Council grantee, giving a compelling address on the importance of social sciences in addressing societal challenges and in supporting policymakers in taking informed and fact-based decisions.
Professor Bruter shared his insights into the challenges and solutions for democratic inclusion across generations, personal situations, and global contexts. His lecture acknowledged the intricate tapestry of democratic processes, highlighting the paramount importance of inclusivity. He addressed the generational gaps, socio-economic disparities, and diverse global contexts that can hinder equal representation and participation. Professor Bruter argued that democracy (i.e. democratic institutions) needs to adapt and be more responsive to citizens’ needs.
Making democracy work for everyoneA panel discussion featuring Sylvia Kritzinger (Professor at the Department of Government of Vienna University), Barbara Prainsack (Chair of European Group on Ethics in Science and Technology), Yves Dejaeghere (Executive Director of Federation for Innovation in Democracy – Europe), and moderated by Sandra Parthie (Member of the European Economic and Social Committee), further explored the dynamics of democracy and sought solutions for a future where the democratic process is not just a mechanism but a living, thriving entity, serving everyone.
The concept of ‘loser consent’ was brought to the forefront of the discussion, with an emphasis on the potential backlash when losers refuse to accept electoral outcomes. Sylvia Kritzinger also explored the meaning of voting, and drew attention to the diverse interpretations people attach to this fundamental democratic act. Importantly, there was a great emphasis on the need to engage the younger generation, who brings a fresh perspective and enthusiasm, thus contributing to the vitality of our democratic discourse.
A recent opinion of the European Group on Ethics in Science and New Technologies, chaired by panellist Barbara Prainsack, explores several challenges to democracy, and in particular the role of private companies and social media in shaping public spaces and people’s opinions. During the discussion, recommendations on digital literacy and addressing the digital divide were underlined as essential components in strengthening our democratic values.
From his hands-on experience in supporting the creation of citizens’ assemblies across Europe, Yves Dejaeghere broadened the perspective on democracy. He highlighted the diminishing importance of intermediary forces (i.e. democratic institutions) and advocated for a more comprehensive view of democracy, citing examples of both the positive and negative aspects of citizens’ assemblies, and the importance of concrete decisions and outcomes that are taken forward by the political actors.
During the discussion with the audience, it became clear that democratic inclusion is a complex issue, and a shift in perspective is urgent. Democracies need to adapt to citizens rather than the other way around. This comes in light of citizens’ increasing demands from their democracies.
The keynote speaker and the panellists recognised citizens’ efforts to contribute positively to their democracies and stressed the need to create conditions that use this goodwill for community benefit.
The participants agreed that restoring hope to those who have become disillusioned is paramount, alongside a new focus on returning citizens to the heart of democratic thinking and practice, while creating a vision for a better future for the current and next generations.
A recording of the event is available on the STOA website.
Read the interview with Professor Michael Bruter.
Your opinion matters to us. To let us know what you think, get in touch via stoa@europarl.europa.eu and follow us on X at @EP_ScienceTech.
STOA Annual Lecture 2024 – Making democracy work for everyone© European Union 2024 – Source : EP© European Union 2024 – Source : EP© European Union 2024 – Source : EP© European Union 2024 – Source : EP© European Union 2024 – Source : EP© European Union 2024 – Source : EPWritten by Naja Bentzen with Kate Dwyer (European Parliament Liaison Office, Washington DC) and Eric Pichon.
Conflict, food insecurity and climate shocks, among other crises, have destabilised African countries in recent years and curbed economic activity. Nevertheless, sub-Saharan Africa is seen as an emerging geopolitical force; and the European Union (EU) and the United States (US) are actively reframing their partnerships with the region.
Background: Challenges in a geostrategic environmentSub-Saharan Africa holds the key to addressing many of the world’s most critical challenges. The region has one of the world’s youngest and fastest-growing populations, encompasses one of the largest free trade areas, has natural resources essential for renewable and low-carbon technologies, and holds a quarter of the seats in the United Nations General Assembly. There are, however, obstacles hampering the region’s geopolitical influence. Democratic backsliding and security crises relating to violent extremism and military coups have intensified in several sub-Saharan African countries in recent years. Out of the region’s 49 countries, 22 are considered fragile or conflict-affected. Some 462 million sub-Saharan Africans were living in extreme poverty in 2023, and public health challenges persist. Alongside climate-related issues, economic shocks from the COVID-19 pandemic and Russia’s war on Ukraine have exacerbated food insecurity and the region’s debt.
Growing Russian and Chinese influence further challenge EU and US cooperation with sub-Saharan African countries. Since 2000, China has significantly expanded its trade, investment and financial ties with the region, as well as increasing its political and military engagement. Russia has similarly intensified its military, political and economic ties with the region in recent years, including through the Wagner Group.
The EU and the US share an interest in a prosperous, peaceful and democratic Africa. During the 2021 EU–US Summit, they voiced concern over the deteriorating political, humanitarian and security situations in several sub-Saharan African countries. In their 2023 joint summit statement, they reaffirmed their commitment to enhance cooperation with African partners and tackle common security challenges together with the Economic Community of West African States (ECOWAS). In a recent joint initiative, the EU and the US teamed up to advance the development of the Trans-African (Lobito) Corridor, a flagship project of the G7’s 2022 Partnership for Global Infrastructure and Investment (PGII).
European Union–Africa relationsFor the past 23 years, EU relations with sub-Saharan Africa were underpinned by the Cotonou Agreement, a legally binding treaty between the EU and sub-Saharan African, Caribbean and Pacific (ACP) countries covering trade, development and political cooperation. On 1 January 2024, the provisional application of the Samoa Agreement replaced the Cotonou Agreement with a new structure for EU–ACP relations and more flexibility for levels of action and types of cooperation. This framework complements the Africa–EU partnership, established at the first Africa–EU Summit in 2000, and the Joint Africa–EU Strategy, adopted in 2007 to strengthen political partnership and enhance cooperation. Recognising the evolving geopolitical environment, in 2020, the European Commission and the High Representative published a joint communication, ‘Towards a comprehensive strategy with Africa’. They proposed centring a new EU–Africa strategy on five thematic partnerships: green transition and energy; digital transformation; sustainable growth and jobs; peace and governance; and migration and mobility. The strategy was discussed at the 2022 African Union (AU)–EU Summit. The concluding declaration, ‘A Joint Vision for 2030’, highlighted a reaffirmed commitment to multilateralism and renewed partnerships for both peace and security and migration and mobility. At the same time, the EU pledged €150 billion in investment for 2021-2027 through the Global Gateway programme, to support its common ambition with Africa for 2030 and the AU Agenda 2063. The EU further pledged to provide specific packages for health and education systems and mobilise €425 million through Team Europe to support vaccination efforts. During the 2022 AU–EU Commission-to-Commission meeting, Commissioners agreed to launch a €750 million programme for infrastructure investment in Africa. Commission President Ursula von der Leyen has made it clear that the EU is not deterred by the slow implementation of its Africa strategy, but intends to rethink its strategic presence to ensure it shows the same unity of purpose towards Africa as it does towards Ukraine. In building on its economic partnership agreements (EPA) with ACP partners, the EU launched a landmark EPA with Kenya in December 2023 to enhance trade, investment and development. The EU also supports the African Peace and Security Architecture (APSA) through its Peace Facility and common security and defence policy.
European Parliament role and responsibilitiesParliament is at the forefront of reshaping the EU’s Africa strategy. A 2017 resolution on boosting development in Africa included many of the priority areas subsequently set out in the 2020 joint communication. In a 2021 resolution on the EU–Africa strategy, Parliament urged both sides ‘to move beyond the donor-recipient relationship’, prioritise human development and human rights, and adapt their priorities in the light of COVID‑19. Throughout 2022 and 2023, Members of the European Parliament (MEPs) passed several resolutions on various aspects of EU–Africa relations, including security threats in western and Sahelian Africa. Parliament has been a strategic partner of the AU’s Pan-African Parliament (PAP) since its inauguration in 2004. In 2009, MEPs created a standing Delegation for the Pan-African Parliament (DPAP). In 2015, Parliament’s Democracy Support and Election Coordination Group (DEG) designated the PAP as a priority regional parliament. MEPs also regularly exchange with African parliamentarians through the ACP–EU Joint Parliamentary Assembly and, as of February 2024, the Africa–EU Parliamentary Assembly. In 2023, the European Parliament opened an office in Addis Ababa, Ethiopia, to liaise with the AU.
United States–Africa RelationsUS–Africa policy has generally prioritised development, trade and investment, democracy and governance, and peace and security. Through State Department initiatives and the US Agency for International Development (USAID), the US has made vital contributions to curb public health crises, expand political rights and civil liberties, and spur economic growth. Under Obama, the US launched several programmes to increase engagement, including the Young African Leaders Initiative (YALI), the African Women’s Entrepreneurship Program and Power Africa. Despite strained relations between the US and sub-Saharan Africa, in 2019, the Trump administration launched Prosper Africa as a key vehicle for US trade and investment aid. In an attempt to reframe Africa’s importance to US national security interests, the Biden administration adopted a new US Strategy Toward Sub-Saharan Africa in 2022. With its core objectives – fostering open societies; democratic and security dividends; pandemic recovery and economic opportunity; and climate adaptation and a just energy transition – the strategy aims to address immediate crises and threats while working towards strengthening Africa’s capabilities to solve global problems. During the 2022 US–Africa Leaders Summit, the Biden administration pledged to invest US$55 billion to support its strategic objectives for 2023-2026, and supported greater African representation in international institutions. The 2022 strategy has increased high-level engagement by US officials, and led to the creation of the President’s Advisory Council on African Diaspora Engagement in the US.
US Congress role and responsibilitiesThe US Congress plays a crucial role in supporting American policy objectives in Africa. Each chamber has sub-committees on sub-Saharan Africa to address a range of pressing topics, including governance, human rights and development challenges. In 2000 and 2015, Congress enacted and reauthorised the African Growth and Opportunity Act (AGOA), a preferential trade agreement that has substantially improved African export competiveness and contributed to the creation of tens of thousands of jobs. Congress also created the Millennium Challenge Corporation (MCC) in 2004, one of the main US policy initiatives in Africa, to form partnerships with countries committed to democratic governance, economic freedom and investing in their populations. During the 115th and 117th Congress, key legislation on Africa included the Better Utilization of Investments Leading to Development Act, establishing the US Development Finance Corporation, and the Trans-Sahara Counterterrorism Partnership Program. In addition to authorising executive action and diplomatic engagement, Congress appropriates and oversees all US foreign assistance for Africa. The House Democracy Partnership (HDP) also maintains legislative strengthening partnerships with the legislatures of Liberia and Kenya. In 2023, the House launched a US–Africa Policy Working Group to enhance cooperation with the continent and increase its understanding of ongoing challenges.
Read this ‘at a glance’ note on ‘EU and US strategies towards sub-Saharan Africa‘ in the Think Tank pages of the European Parliament.
Written by David De Groot and Silvia Kotanidis.
In June 2024, around 400 million EU citizens go to the polls to elect the Members of the European Parliament’s 10th legislature. As the only EU institution that represents EU citizens, elections to the European Parliament are therefore major democratic events, and the only one at EU level that resembles national democratic electoral consultation. European elections, however, differ from the national version, as they are part of a context of multi-tier government, sometimes perceived as ‘second order elections’.
The main difference is that the European elections are a rather fragmented exercise, since a great part of the electoral process, including the way in which the right to vote is exercised, remains subject to national rules. In addition, the lack of a real transnational forum in which to debate European (as opposed to national) issues during European elections is one reason why European elections have failed to earn attention comparable to national elections, despite the prominent role the European Parliament has acquired in European policy-making in recent decades.
A number of reforms have been put forward over the years. Measures to harmonise rules or mechanisms that would personalise the elections and hence bring more visibility to the candidates and their campaigns have been proposed. Two reforms are pending. In one case, to harmonise a few aspects of the electoral process. In the other, to make additional deeper reforms with the introduction of a Union-wide constituency. A repeat of the lead candidate process (a political rather than a legal practice), is also likely to be attempted for the 2024 elections.
This briefing explores the legal framework of the EU electoral rules, highlighting which aspects are governed by national rules, and describes the innovations the reforms currently on the table could bring. It also analyses decisions on the composition of Parliament and initiatives to strengthen the resilience of the electoral process.
Read the complete briefing on ‘European elections 2024: Rules of a pan-European democratic event‘ in the Think Tank pages of the European Parliament.
Written by Marketa Pape.
Access to housing in the EU has become problematic in recent years. Demography and urbanisation-related structural factors, aggravated by the COVID-19 pandemic, the conflict in Ukraine, soaring energy prices, the cost-of-living crisis and (already high) housing prices that keep rising are preventing many people from accessing decent housing solutions. The lack of affordable housing supply only adds to this situation. These difficulties affect not only low- but now also middle-income households, as well as specific vulnerable groups, among them young people. Overall, there is not enough ‘social housing’ provision in the EU to meet increased demand.
While both the EU and the United Nations recognise the right to housing, the longstanding crisis in housing affordability has had an adverse impact on people’s living standards, well-being and social inclusion. This is especially the case with young people, many of whom are struggling to access any form of decent housing, in particular in cities. Throughout the EU, the number of young people experiencing homelessness is on the rise.
The primary responsibility for housing policies in the EU lies with the Member States, while the concrete provision of social housing is often ensured by regions and cities. The EU has no direct competence in the area of housing and only a limited scope of action to address social issues, yet it provides relevant guidance and funding. Furthermore, certain EU rules have an indirect impact on housing provision.
This briefing provides an inexhaustive overview of what is being done across the EU to improve housing affordability in general, with a specific focus on making housing accessible to young people.
Several recent developments could be seen as paving the way to a new approach to the provision of affordable housing in the EU.
Read the complete briefing on ‘Social and youth housing in the EU‘ in the Think Tank pages of the European Parliament.
Written by Anna Caprile and Eric Pichon.
This series of maps illustrates Russia’s expanding diplomatic, economic and military engagement across the African continent. It also provides a visual representation of the deployment of hybrid tools, such as information manipulation campaigns, and the multi‑faceted presence of the paramilitary company Wagner, both of which are integral parts of Russia’s current strategy in Africa.
Russia’s full‑scale invasion of Ukraine in February 2022, and the subsequent open confrontation with the West in all arenas, has put the spotlight on the African continent again as an area of geopolitical rivalry. Russia’s current engagement on the continent seeks to break the diplomatic and economic isolation imposed by the West, to reassert its own relevance on the international stage as the champion of the new ‘polycentric world’, and to advance its geo‑strategic ambitions in mining, energy and military presence in key areas, such as the Red Sea and the Mediterranean.
Russia made significant diplomatic efforts to ensure a high turnout at the second Russia‑Africa summit, held in Saint Petersburg in July 2023, which was well attended but by significantly fewer Heads of State than the first summit, in 2019. However, the 2023 summit failed to address several African leaders’ concerns about the impact of the war in Ukraine on their countries’ economies. As evidenced in votes on recent United Nations (UN) resolutions, the African countries’ positions on the war vary greatly. Russia’s expanding influence in Africa also plays out through non‑official channels, such as the use of private military companies (such as the Wagner Group) and information manipulation campaigns.
Russia has concluded military cooperation agreements with 43 African countries, and is a major, though declining, arms supplier to Africa. This cooperation is not linked to democratic pledges, and in multiple African countries hit by coups, Russia has continued or strengthened its military cooperation. Beyond arms, Russia’s trade with Africa is relatively insignificant compared with other trade partners. Russia’s presence is stronger in the African mining and energy markets, notably through mining concessions to Wagner‑associated companies, and it has signed nuclear cooperation agreements with 20 countries, with plans to build nuclear plants in Egypt and Nigeria.
Read the complete briefing on ‘Russia in Africa: An atlas‘ in the Think Tank pages of the European Parliament.
Attendance at Russia-Africa summit (Saint Petersburg, Russia, 27 28 July 2023) Vote on the withdrawal of Russia troops from Ukraine (ES 11/1, March 2022) Vote on an immediate end to the war in Ukraine (ES 11/6, February 2023) Wagner and Russian interference in Africa Russia-Africa military agreements and arms trade, and recent coups Russian arms export to Africa Africa’s main trade partners Russian trade with Africa in a snapshot Energy and mining cooperationWritten by Rachele Rossi and Nikolina Šajn.
The ‘farm to fork’ strategy is about building sustainable EU food systems, in line with the EU’s Green Deal. Launched in May 2020, its elements are moving at different speeds, with much debate on its objectives and priorities. The EU institutions are helping to shape the various elements of the strategy.
EU progress towards implementing the strategyOn 20 May 2020, the EU Commission adopted a communication on ‘A farm to fork strategy for a fair, healthy and environmentally friendly food system’, with priorities and challenges linked to each step in the food chain. The strategy announced both legislative and non‑legislative initiatives, mostly listed in its action plan.
The Commission has so far delivered on some ‘farm to fork’ strategy initiatives, including:
Other Commission initiatives, including a legislative framework for sustainable food systems (FSFS, containing a sustainability labelling framework), announced for 2023, have not yet materialised. The timetable for some initiatives (for instance, 2021 for the organic production action plan and better nutrient management action plans) was set in the EU biodiversity strategy. Other initiatives require multiple actions over a longer period. Examples of such initiatives include improving producers’ position in the food chain, which involves implementing EU rules on unfair trading practices and the CAP rules on agricultural markets.
The following tables list ongoing (Table 1) and pending (Table 2) ‘farm to fork’ strategy initiatives.
InitiativeState of playPlant protection products (PPPs)In 2022, the Commission put forward a proposal on the sustainable use of PPPs, but Parliament rejected it, and the Commission announced its withdrawal in 2024.Corporate sustainabilityIn 2022, the Commission proposed a directive on corporate sustainability due diligence. Parliament and the Council agreed a provisional text that awaits formal adoption.Carbon farmingIn 2022, the Commission adopted a proposal on rules on certifying carbon removals on farms, which is currently being negotiated by Parliament and the Council in trilogues.New genomic techniques (NGTs)The Commission put forward a proposal on the NGTs in 2023. Parliament adopted its position in 2024 and the Council has yet to find a common position.Animal welfareIn 2023, the Commission put forward a legislative proposal on the welfare of animals during transport, but not on other animal welfare aspects (see Table 2).Marketing standardsIn 2024, Parliament and Council reached a provisional agreement on the proposal on marketing standards for certain agricultural products (the ‘breakfast directives’), and are also working on the 2023 proposals on plant and forest reproductive material.Food wasteIn 2023, the Commission proposed legally binding targets to reduce food waste, a lot less ambitious than in the strategy. The co-legislators are currently discussing it.Table 1 – Ongoing ‘farm to fork’ strategy initiatives InitiativeState of playSustainable food systemsSubject of a public consultation in 2022 and announced in the Commission work programme for 2023, this leading farm-to-fork initiative has yet to be put forward.Food labellingNo proposals have been submitted for the revised rules on front‑of‑pack nutrition labelling, origin indication for certain products, and ‘use by’ and ‘best before’-date marking, announced for 2022. Similarly, the proposal on the sustainability labelling for food products, announced for 2024, has yet to be submitted.Animal welfare aspectsThe announced legislative proposals on three aspects of animal welfare – keeping of animals, slaughter and labelling of animal products – have not yet been submitted.Nutrient profilesLegislation on nutrient thresholds (announced for 2022) has not yet been put forward.Food contact materialsNew rules on recycled plastic intended to come into contact with food entered into force in 2022, but the overhaul of EU food contact material laws, planned for 2023, is still awaited.Promotion policyFollowing an evaluation, the Commission said it aimed to enhance the role of EU promotion campaigns for agri‑food products in sustainable production and consumption in 2022. The proposal has yet to be published.Marketing standardsThe proposal on marketing standards for fish and seafood products is still outstanding.Food procurement and school schemeThe Commission announced it would propose minimum criteria for sustainable public procurement of food in 2023, but has not yet done so. The review of the legal framework for the EU school scheme is now expected by the end of March 2024.Feed additivesCurrent feed additives rules were expected to be revised in 2021. The revision was initially postponed for 2023 and is now not expected to take place before the end of 2024.Table 2 – Pending ‘farm to fork’ strategy initiatives The debate around the strategyGenerally greeted as a long‑awaited move towards a more sustainable food system, the ‘farm to fork’ strategy nevertheless came under criticism as it was not accompanied by an impact assessment, even though various studies warned that some of the elements risked having a negative effect on agricultural production. The Commission assured that impact assessments would be available for individual initiatives. In the wake of the pandemic and Russia’s war on Ukraine, a debate has emerged around whether the sustainability goals harm or improve food security. In January 2024, the European Scientific Advisory Board on Climate Change criticised the Commission’s failure to deliver some of the initiatives. The Board considered that for agricultural emissions to decrease, more adequate financial incentives for farmers are needed. Currently, none of the remaining initiatives are included in the Commission’s tentative agenda.
What’s next?The debate on the sustainability of the EU’s farming and food system is now shifting to the strategic dialogue on the future of EU agriculture, launched by the Commission in January 2024. Meetings planned with a wide range of stakeholders as part of this dialogue will explore ways to ensure a fair standard of living for the farmers, while keeping within climate targets, using technological innovation and promoting a ‘thriving future’ for the EU food system.
Read this ‘at a glance’ note on ‘EU ‘farm to fork’ strategy: State of play‘ in the Think Tank pages of the European Parliament.
Written by Karoline Kowald and Marianna Pari, with Roberto Gallo.
For the first time ever, the European Parliament and the Council have agreed to revise the ceilings of the EU’s multiannual financial framework. The agreement affects the remaining years of the current financial period: 2024 to 2027. The European Parliament had demanded a revision to enable the EU to rise to its challenges effectively. At the special European Council meeting on 1 February 2024, the EU Heads of State or Government reached a highly anticipated decision on the revision following the deadlock of their December meeting. This opened the way for the final negotiations with Parliament and, on 6 February, the negotiators reached a political agreement. Parliament is expected to vote on giving its consent during its 26-29 February plenary session.
The core element of the political agreement is the decision to establish predictable and stable financial support for Ukraine, totalling €50 billion from 2024 to 2027. The funds will be provided through a new framework, the Ukraine Facility, endowed with €33 billion in loans, guaranteed by the EU budget, and €17 billion in grants, financed by the EU budget through a special instrument.
In addition to the financial support for Ukraine, the EU budget will provide €14.6 billion to cope with migration needs, support key technologies and enhance the EU budget’s flexibility, of which €10.6 billion originates from a redeployment of funds. The overall reinforcement of the EU budget amounts to €31.6 billion in grants for current priorities, with €21 billion in ‘fresh money’ from the Member States. This includes the €17 billion that will go to the Ukraine Facility.
As requested by the European Parliament, a mechanism will be introduced over and above the budget’s ceilings to cover over-runs in the borrowing costs of the EU’s recovery fund, Next Generation EU. In negotiations with the Council, Parliament also secured the smooth implementation of the EU4Health programme.
Read the complete briefing on ‘First-ever revision of the EU’s long-term budget: Agreement between Parliament and Council‘ in the Think Tank pages of the European Parliament.
Written by Ralf Drachenberg.
‘This is Europe’ – an initiative proposed by the President of the European Parliament, Roberta Metsola – consists of a series of debates with EU leaders to discuss their visions for the future of the European Union. EU unity was a central theme in the address of the President of Romania, Klaus Iohannis, to the European Parliament on 7 February 2024. Iohannis also emphasised the EU’s values and model of democracy, pointing to the European elections as a key moment in the continent’s democratic process. For the Romanian President, the EU must assume a leading global role in maintaining the international order, as a precondition for preserving our way of life and the EU’s values. In that context, he sees the strengthening of the EU’s internal resilience as a fundamental condition for a stronger Union and for its increased geopolitical role. Iohannis stressed the benefits of EU membership whilst outlining how enlargement makes the EU more attractive. Finally, he emphasised the need to streamline the EU’s decision-making capacity and – without excluding changes to the Treaties eventually – to use all available possibilities under the existing Treaties to smooth decision-making.
Defending democracy, territorial integrity and sovereignty, as well as the rules-based international order cannot be subject to any ‘fatigue’.
Klaus Iohannis
BackgroundRoberta Metsola launched the ‘This is Europe’ initiative shortly after her election as President of the European Parliament in January 2022. Klaus Iohannis is the 12th EU leader to have addressed the Parliament since its Conference of Presidents endorsed the initiative on 28 April 2022.[1] These debates will continue during subsequent sessions. A similar Parliament initiative, ahead of the 2019 European elections, saw 20 EU leaders speak in Parliament’s plenary sessions about their views on the future of Europe. Iohannis, who is currently the third-longest-serving member of the European Council, also took part in that series. A 2019 EPRS analysis of the future of Europe debates pinpointed the similarities and differences in EU leaders’ views.
The ‘This is Europe’ initiative is particularly relevant in the context of the follow-up to the Conference on the Future of Europe (CoFoE), and the preparations for the Strategic Agenda 2024-2029. The CoFoE produced 49 proposals on the EU’s future policies and functioning (see the EPRS overview), including more than 300 measures by which they might be achieved. Research by EPRS has shown that there is significant convergence between the results of the CoFoE and the priorities of the European Council, as expressed in the latter’s Strategic Agenda 2019‑2024 and its conclusions.
Figure 1 – Time devoted by Klaus Iohannis to various topics in his speechThe ‘This is Europe’ initiative is particularly relevant in the context of the Conference on the Future of Europe (CoFoE), and the preparations for the Strategic Agenda 2024-2029.
The CoFoE produced 49 proposals on the EU’s future policies and functioning (see the EPRS overview), including more than 300 measures by which they might be achieved. Research by EPRS has shown that there is significant convergence between the results of the CoFoE and the priorities of the European Council, as expressed in the latter’s Strategic Agenda 2019‑2024 and its conclusions over the past three years. The European Council, on the initiative of its President, Charles Michel, has started the reflection process on the priorities for the next institutional cycle, which will lead to the Strategic Agenda 2024-2029. The first step in the reflection process was a discussion at the informal European Council meeting in Granada on 5-6 October 2023, on the basis of general questions formulated by Charles Michel. The next step involves a series of consecutive group meetings with a small number of EU leaders representing a mix of geographical regions in the EU, political party affiliations and diversity of opinion. Three meetings have taking place to date: on 13 November in Berlin, 14 November in Copenhagen and 16 November in Zagreb. Another meeting is expected to take place in Paris at the end of November.
Main focus of Klaus Iohannis’s speechIohannis covered a number of topics in his speech to Parliament (see Figure 1), devoting most attention to i) EU unity, ii) EU values and democracy, iii) EU resilience, and iv) public trust in institutions.
EU unityIohannis argued that the EU’s unity had been repeatedly tested and had not faltered, underlining that this had been a strategic advantage in recent crises. He stressed the need to ‘maintain the Union on the path of success, staying true to our vision of a united and stronger Europe’.
EU values and democracyHe reiterated his strong commitment to the EU values, notably unity, solidarity, cohesion, and the rule of law, as stated for example in the May 2019 Sibiu declaration (see EPRS analysis). He declared he would remain deeply faithful to these values and principles in his future endeavours
EU resilienceThe Romanian President outlined that strengthening the EU’s resilience was a fundamental condition for a stronger Union and for its increased geopolitical role. This broad priority includes different policy areas, notably responding to hybrid threats, developing technology, such as artificial intelligence, fighting climate change, stimulating competitiveness through industrial production, and sustainable supply chains.
Public trust in institutionsHe warned of a crisis of public trust in our institutions, and of rising euroscepticism, which offers wrong and dangerous solutions to Europe’s challenges. He therefore emphasised that it was everyone’s common duty ‘to be honest in our communication with the European citizens’.
Specific proposals and positionsPresident Iohannis used the opportunity to present his views on how the European Union should advance in specific areas, summarised below.
Policy issuePriority action and proposals (quotes)Public trust in institutions‘We need to do more to promote the feeling – and the certainty – that we are all part of the same community of values, which must be protected by every single one of us.’EU’s global role‘The European Union must assume a leading global role in preserving the international order, as a precondition for preserving our way of life and our values.’Security and defence‘While working in full complementarity with NATO, it is indeed high time to deliver on our European ambitions when it comes to our defence industry.’Enlargement‘Enlargement is an essential part of our strategic answer to the geopolitical developments and a key investment in lasting peace, stability, and democracy in our neighbourhood.’Table 1 – Specific proposals made by Klaus Iohannis, by policy area Comparison with Iohannis’s 2018 Future of Europe speechWhen Klaus Iohannis spoke before the Parliament over 5 years ago, on 23 October 2018 as part of the Future of Europe debates, EU unity was also the central point of focus in his vision for Europe. Back then, he emphasised i) the EU’s global role, ii) security, and ii) defence. When comparing the two speeches, there is a lot of consistency in the focus points, although new EU priorities, also addressed in the later speech, have emerged since the earlier speech as a result of recent crises.
Read this ‘at a glance’ note on ‘‘This is Europe’ debate in the European Parliament: Speech by Klaus Iohannis, President of Romania, 7 February 2024‘ in the Think Tank pages of the European Parliament.
Written by Monika Dulian.
The Energy Community is an international organisation facilitating energy cooperation; it brings together the EU and neighbouring countries. Established by the Treaty establishing the Energy Community, signed in 2005 in Athens, Greece, it has been in force since 2006. The treaty’s validity has been extended twice, most recently until 2036. The signatories to the treaty are the EU and nine contracting parties: Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine. There are also three permanent observers: Armenia, Norway and Türkiye. EU Member States may become participants in the Energy Community.
The Treaty establishing the Energy Community is designed to bring the contracting parties closer to the EU by facilitating reform and gradually extending the EU acquis on energy, environment and climate to their respective territories. The Energy Community’s objectives as defined by the treaty include: building a regulatory and market framework enabling investment in power generation and networks; creating an integrated energy market in the region (including infrastructure) compatible with the EU energy market; ensuring energy supply security; and promoting climate‑friendly energy sources. The climate and energy policies of the Energy Community countries are those enshrined in the EU Green Deal and are reflected in their commitment to the Decarbonisation Roadmap, based primarily on the 2030 energy and climate targets.
In response to the energy crisis following Russia’s full-scale invasion of Ukraine, the Energy Community contracting parties implemented emergency regulations (on gas storage and solidarity). The European Community is also active in supporting Ukraine through the Ukraine Support Task Force, which provides equipment needed to repair damage to energy systems caused by the war. To finance this activity, the Energy Community set up the Ukraine Energy Support Fund. Ensuring that Ukraine’s reconstruction and recovery is in line with the EU Green Deal could become a centrepiece of the Energy Community’s mission in the coming years.
Read the complete briefing on ‘Energy Community: Creating an integrated pan-European energy market‘ in the Think Tank pages of the European Parliament.
Written by Clare Ferguson and Katarzyna Sochacka.
A highlight of the February I 2024 plenary session was the debate on the conclusions of the special European Council meeting on 1 February, at which leaders reached agreement on EU funding, in particular for Ukraine. That was followed by a debate with the Council and Commission on the need for unwavering EU support for Ukraine, after two years of Russia’s war of aggression against Ukraine. Members also debated empowering farmers and rural communities and ensuring sustainable and fairly rewarded EU agriculture.
Further debates took place on the Commission’s new communication on the EU2040 climate target, the state of EU solar industry in the light of unfair competition, and water crisis and droughts in the EU and the need for a sustainable, resilient water strategy for Europe. Members discussed the Dentsu tracking case and the Commission’s lack of transparency with regard to the tobacco industry. They discussed the situation of prisoners in Hungarian jails, allegations of Russian interference in EU democratic processes and the need to fight rising antisemitism and anti-Muslim hatred. Debates took place on quality traineeships in the EU and the commemoration of the 70th anniversary of Abbé Pierre’s appeal to address homelessness. Other debates took place on international issues: the situation in Haiti on the eve of the deployment of the United Nations Multinational Security Support Mission, further repression against democracy in Venezuela, the state of play of the implementation of the Global Gateway, and multilateral negotiations in view of the World Trade Organization’s 13th Ministerial Conference, in Abu Dhabi.
Finally, a ‘This is Europe’ debate was held with the President of Romania, Klaus Iohannis.
Plants obtained by certain new genomic techniquesPlant breeding has changed greatly in the two decades since the EU adopted its rules on genetically modified organisms (GMOs), with advances in biotechnology allowing new ways to introduce genetic changes. Such ‘new genomic techniques’ (NGTs) can help secure enough food for everyone and reduce waste, for instance by producing bananas that do not go brown. Members debated and adopted a Committee on Environment, Public Health and Food Safety (ENVI) report on plants obtained by certain new genomic techniques, which now sets Parliament’s position for negotiations with the Council. The ENVI committee report includes a ban on companies taking out patents on such plants. The proposal categorises the plants as NGT1 (equivalent to conventional plants) and NG2 – which would be subject to EU GMO legislation. The committee’s report proposes to strengthen the rules on what can be considered an NGT1 plant, guarantee seed traceability, and create a public database of NGT1 plants. It agrees to maintain GMO requirements for NG2 plants, including compulsory labelling, introduces a fast-track risk assessment procedure, and insists on respect of the ‘precautionary principle’. The rules would also ban use of NGT plants in organic agriculture.
Automated data exchange for police cooperation (Prüm II)The EU’s Prüm framework allows EU law enforcement authorities to exchange data on DNA, fingerprints, and vehicle registration. While this has greatly enhanced police cooperation, challenges persist. Members considered and adopted an interinstitutional compromise on a new ‘Prüm II’ regulation regarding automated data exchange for police cooperation, recently endorsed by its Committee on Civil Liberties, Justice and Home Affairs (LIBE). The scope of data searches will be extended to facial images of suspects and convicted persons, police records (on a voluntary basis), data allowing human remains to be identified and for missing person searches. Parliament has insisted that data matches undergo human review and a proportionality check, to ensure respect for fundamental rights.
Instant payments in euroTo allow us to make secure instant payments in euro, without paying large fees, the Commission has proposed new rules that should also help to fight financial crime. Parliament considered and adopted a provisional political agreement reached between Parliament and Council negotiators that would oblige payment service providers to offer instant credit transfers, processed within seconds, apply standard charges and undertake a number of checks to ensure the money is not used for criminal activities.
Protection of workers: Limit values for lead and diisocyanatesLead is highly toxic to human health. Many materials used in construction, motor vehicle and furniture manufacturing also contain diisocyanates, which can cause asthma and skin disease. In February 2023, the Commission put forward a proposal for a directive aimed at revising existing limit values for lead, and introducing limit values for diisocyanates. The proposal aims to safeguard people who have to work with these chemicals. Members debated and adopted a provisional agreement, recently endorsed by Parliament’s Committee on Employment and Social Affairs (EMPL), that would update lead exposure rules for the first time in 40 years, limit exposure values for diisocyanates for the first time and better protect female workers.
Waste from electrical and electronic equipment (WEEE)Members adopted a provisional agreement on amending the legislation on waste from electrical and electronic equipment to avoid imposing a retroactive obligation on producers (mainly of solar panels). During interinstitutional negotiations, Parliament’s ENVI committee succeeded in amending the proposal to ensure an assessment by the end of 2026, among other things.
Transposing Atlantic tuna fisheries measuresAs a contracting party to the International Commission for the Conservation of Atlantic Tunas (ICCAT), which regulates tuna fisheries, the EU played an important role in deciding new measures to reduce sea turtle bycatch and restrict recreational albacore fishing. During this plenary session, Parliament adopted a provisional agreement (based on a report from its Committee on Fisheries – PECH), on transposing new ICCAT binding provisions into EU law. The agreed text will transpose the 2022 decisions in addition to the 2006, 2016-2019 and 2021 decisions. The agreement amends the Regulation on a Bluefin tuna management plan, seeks to clarify language and to ensure a level playing-field between EU and non-EU operators.
Opening of trilogue negotiationsMembers voted to approve a LIBE committee decision to enter into interinstitutional negotiations on a temporary derogation from certain provisions of the ePrivacy Directive for the purpose of combating online child sexual abuse. Four other decisions – from the LIBE committee on judicial cooperation: transfer of proceedings in criminal matters; from the PECH committee on conservation, management and control measures applicable in the area covered by the Convention on future multilateral cooperation in the North-East Atlantic fisheries data; from the Committee on Legal Affairs (JURI) on company law: time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings; and from the Committee on Economic and Monetary Affairs (ECON) on amending certain financial services and investment support regulations as regards certain reporting requirements – were approved without vote.
Read this ‘at a glance’ note on ‘Plenary round-up – February 2024‘ in the Think Tank pages of the European Parliament.
Written by Issam Hallak.
The capital markets union (CMU) is an EU political project aimed at ‘de-fragmenting’ the markets for corporate financing. The primary objective is to ensure that firms with comparable characteristics obtain comparable financing conditions – especially as regards costs and volumes – regardless of the Member State in which they are located. The objective to de-fragment capital markets is influenced by the context of European monetary union and the single market for goods and services; fragmented financial markets have adverse effects on the conduct of euro monetary policy, as well as on fair competition between EU firms – the level-playing field. The second major objective of the CMU is to expand the financial means and instruments available to EU corporations through wider de-fragmented EU capital markets offered to EU companies, as well as regulatory intervention. This aspect is of greater relevance to the financing of innovation and would be reflected in the ‘attractiveness’ of the EU capital markets to both firms seeking funding and investors.
The first major CMU policy action agenda was set out in 2015, and the second in 2020. Actions address a wide range of aspects of EU capital markets, and seek three objectives: a) transparency and centralisation of information, b) removal of cross-border obstacles for investment within the EU, and c) regulatory tools to expand financing resources and financial instruments.
Steps towards an effectively integrated EU capital market are therefore being taken one by one, taking Member States’ specificities into consideration. In the meantime, the incompletely integrated EU capital markets maintain economic discrepancies and divergences between EU Member States, while EU firms with significant innovation and growth potential may continue to lack the financial investment they need from the private sector.
Read the complete briefing on ‘Capital markets union: Overview and state of play‘ in the Think Tank pages of the European Parliament.
Written by Pieter Baert.
EU Member States’ public finances have been under considerable strain owing to both the COVID-19 pandemic and the twin energy-cost-of-living crisis. To bolster EU economies in the wake of these challenging times, various initiatives were taken forward at EU level to simplify tax compliance for businesses operating across borders, and to ensure that taxpayers were paying their fair share. As the current Commission’s mandate approaches its conclusion, this briefing looks at some notable achievements and anticipates potential future action in the field of taxation.
Accomplishments and ongoing workDespite facing significant economic challenges, the fiscal stability of EU Member States has demonstrated resilience in recent years. National tax administrations have responded rapidly to constantly changing circumstances and have been quick to install tax benefits for the poorest households or to provide tax relief for struggling businesses. Fortified by a strong economic rebound, tax revenue as a percentage of EU gross domestic product returned to its pre-pandemic average in 2022 (41 %). To support the European economy’s rebound, the European Commission put forward a ‘package for fair and simple taxation‘ in July 2020, listing 25 distinct (soft or hard law) initiatives the Commission would undertake in the area of taxation during its mandate. One year later, this was followed up by a communication on ‘business taxation for the 21st century‘, listing a number of additional potential legislative proposals. With these initiatives, the Commission aimed to reduce tax obstacles for businesses in the single market, and help Member States enforce existing tax rules and fight tax fraud and aggressive tax planning.
The key milestone was the 2021 OECD/Inclusive Framework agreement on a two-pillar solution to reform international corporate tax rules, supported by nearly 140 countries, including all EU Member States. The subsequent adoption of the global minimum corporate tax (‘Pillar Two’) in the EU has ensured that large multinationals operating in the EU are today subject to a tax burden of at least 15 %. While there has been some delay, a multilateral convention to implement the other half of the global tax deal (‘Pillar One’, concerning taxing rights on profits made by very large multinationals) will be open for signature soon, with the new rules entering into force in 2025.
Another important achievement was the agreement to broaden the information exchange between tax authorities (DAC8): from 2026, tax administrations will have a better overview of the crypto-asset transactions made and proceeds gained by EU customers, thereby reducing the risk of tax evasion. Agreements were also reached on public country-by-country reporting (requiring multinationals to reveal publicly how much corporate tax is paid per EU country they are operating in) and the modernisation of rules for value added tax (VAT) rates (for example, phasing out reduced VAT rates on fossil fuels). Meanwhile, some EU countries undertook measures against aggressive tax planning as part of their national recovery plans under the NextGenerationEU mechanism.
Today’s globalised economy also requires close cooperation with third countries to achieve EU tax policy objectives. The UK-EU economic partnership agreement, following the UK’s withdrawal from the EU, includes a protocol oncombating VAT fraud together. The EU’s process of listing third countries that fail to comply with international good governance tax standards has served as an incentive for many of these countries to improve their practices.
Meanwhile, the legislative process on some of the European Commission’s other tax initiatives is still ongoing, such as the proposals to create a harmonised corporate tax base and to update energy taxation rules (see Table 1). The Belgian presidency of the Council will continue to work on these files and is aiming to finalise agreements on both the ‘FASTER’ proposal – for faster and safer relief of excess withholding taxes – and on the proposal on ‘VAT rules for the digital age’, in particular before the European elections.
Legislative proposalAimEuropean Parliament (non-binding opinion)Energy taxationAlign taxation of energy products and electricity with EU Green Deal objectivesAwaiting Committee decisionUnshellCounter shell companies when they are used for abusive tax purposesOpinionVAT in the digital ageReduce need for multiple VAT registrations, harmonise VAT reporting standards and fight fraudOpinionDebt-equity bias reduction allowance (DEBRA)Reduce debt-equity bias in corporate tax, encourage the re-equitisation of companies and strengthen capital markets unionOpinionFaster and safer tax excess relief (FASTER)Simplify, digitalise, accelerate withholding tax relief and strengthen capital markets unionAwaiting Parliament’s voteBusiness in Europe: Framework for income taxation (BEFIT)Harmonise corporate tax base, lower business compliance costs and increase tax certaintyAwaiting Committee decisionHead office tax system (HOT)Lower tax compliance costs of small businesses operating across bordersAwaiting Committee decisionTransfer pricingEnshrine transfer pricing principles within EU law, increase tax certainty and prevent double taxationAwaiting Committee decisionTable 1 – Ongoing initiatives in the Council in the area of taxation (non-exhaustive) What might the future bring?The European Commission did not put forward a charter on taxpayer’s rights – initially planned for 2021. This charter was intended to pinpoint lingering tax barriers within the single market and recommend best practices drawn from across the EU to enhance taxpayers’ experiences, addressing issues such as the speed of VAT refunds. Commissioner Paolo Gentiloni envisaged this initiative being taken forward ‘at a later point in time’. One key concern has been the tax difficulties faced by cross-border teleworkers, and both the European Parliament and the European Economic and Social Committee have called on the Commission to take action in this area.
Given the great number of initiatives taken in the past few years to fight tax avoidance, the Commission is currently assessing ‘the effectiveness, efficiency and continued relevance’ of the directive on administrative cooperation (through which national tax authorities share an increasing amount of tax-related information with their EU counterparts). The European Parliament and Court of Auditors have already suggested several improvements.
The European Commission has also started preparatory work on potential future legislative initiatives. For example, a VAT and tourism package is being developed. This would modernise VAT rules for travel agencies but may also review VAT exemptions in international air and maritime transport in the context of the Green Deal. Additionally, the VAT exemption for financial and insurance services is under evaluation.
Other challenges on the horizon may be the future implementation of Pillar One, as concerns continue to grow over the potential non-participation of the United States. MEPs have called on the EU to come forward with a unilateral measure – a digital levy on digital companies or similar – in case there is a clear lack of progress on Pillar One; this levy could feed into the EU budget.
Read this ‘at a glance’ on ‘EU tax achievements: Looking back (and forward)‘ on the Think Tank pages of the European Parliament.