European Parliamentary Research Service Blog

Written by Zuzana Alexandre, Micaela Del Monte, Gianna Eckert, Silvia Kotanidis, Vendula Langova and Violeta Rakovska (Members’ Research Service and Unit for Legislative Quality, DG Presidency),

© Ivelin Radkov / Adobe Stock

With the virulence of the coronavirus pandemic gradually diminishing, and in the light of the restrictive measures adopted by Member States, attention remains on the way chosen by the various states to respond to the crisis. With states at various stages of relaxing emergency constraints, the effects of the coronavirus pandemic are likely to last in terms of health, economic, social, psychological and possibly even political impact.

Although public attention is now turned towards the widely differing measures that states are taking in order to live with the virus, new challenges are emerging as international and domestic traffic, trade and free movement of people are re-established, having been all but frozen.

In this context, it is still necessary to complete the overview of Member States’ constitutional frameworks in response to the coronavirus pandemic with the hope that this might offer some guidance or insight, should a comparable crisis arise in the future.

This is the last in a series of four briefings and completes the comparative overview of Member States’ institutional responses to the coronavirus crisis by analysing the legislation of Cyprus, Czechia, Greece, Ireland, Lithuania and Slovakia. The first in the series gave an overview of the responses in Belgium, France, Germany, Hungary, Italy, Poland and Spain, the second covered Austria, Bulgaria, Estonia, Latvia, Malta, Romania and Slovenia, while the third covered Croatia, Denmark, Finland, Luxembourg, the Netherlands, Portugal and Sweden.

Read the complete briefing on ‘States of emergency in response to the coronavirus crisis: Situation in certain Member States IV‘ in the Think Tank pages of the European Parliament.

Written by Clare Ferguson,

© Architectes : Vandenbossche SPRL, CRV S.A., CDG S.P.R.L., Studiegroep D. Bontinck, ©Façade et Hémicycle – Arch M. Boucquillon Belgium – European Union 2019 – Source : EP

The agenda for the July session – the last regular session before the summer, and likely the last in Brussels, with Parliament planning for a return to Strasbourg in September – opens with Council and European Commission statements. The first, with Chancellor Angela Merkel setting out the programme of activities of the German Presidency, will be followed by debate on the outcome of the European Council’s video-conference meeting last month, at which EU leaders held a first discussion on the recovery plans. With the focus remaining firmly on getting Europe back on its feet following the coronavirus outbreak, statements follow on the preparation of the next European Council meeting, where leaders will focus on the economic recovery, aiming to reach agreement on the revised proposal for the EU multiannual financial framework (MFF) for 2021-2027 and the proposed ‘Next Generation EU’ recovery fund.

The transport sector was key to maintaining EU food and medicine supplies during the coronavirus outbreak, and three important files on social and market legislation in the transport industry return to the agenda on Wednesday afternoon. These aim at ensuring better working conditions for freight drivers, whilst at the same time improving road safety by ensuring adherence to common safety standards and fair competition – by tackling the issue of ‘letterbox’ companies, for example. Should Members adopt the three proposals at this second-reading stage, on the basis of texts agreed in trilogue with the Council; the ‘Mobility Package’ measures will finally become law, bringing to an end a long and controversial process.

Measures to reorganise EU assistance for various specific EU sectors following the pandemic and in light of its expected economic consequences are now in preparation, with statements expected from Council and the Commission on Wednesday on the EU post-coronavirus public health strategy. The Commission is also due to respond to an oral question tabled on Friday, on the role of cohesion policy in tackling the socio-economic fallout from Covid‑19. The question intends to clarify exactly how the Commission intends to share cohesion funding between existing priorities and the coronavirus recovery, particularly in the light of the delay in agreeing the legislation on regulating cohesion spending and the revised EU budget proposals. Members have already criticised the proposal to reduce funding for the cultural sector in the next MFF, and Council and Commission statements are expected on the sector’s post-coronavirus recovery on Friday morning.

Good economic governance will be even more important in the difficult years to come, and Members will consider a number of reports on economic matters during this session. On Wednesday evening, Members will vote on the Committee on Budgets’ report on the 2019 annual report on the European Investment Bank’s financial activities. The report welcomes the EIB’s reinforced focus on the EU priorities of green investment and supporting small and medium-sized enterprises, but underlines that the bank can still do more in this direction. The report also expresses concern regarding continued exceptions for gas projects, the geographical coverage of EIB lending, the use and control of intermediaries to disburse external lending, as well as transparency towards other EU institutions. The EIB’s move towards greening the EIB’s investment policy is also a focus of the annual report on control of the EIB’s financial activities in 2018. Members will also discuss the Budgetary Control (CONT) Committee’s report on Wednesday, which looks in greater detail at the activities of the EIB and the types of transactions and relationships it deals with. The need to ensure funding for climate sensitive projects, and to ensure ethics, integrity, transparency and accountability in all EIB activities are key points highlighted in the report.

On Wednesday evening, Members will also vote on a report on the 2018 report on protection of the EU’s financial interests and the fight against fraudulent use of EU funding, which records a 25 % fall in the number of irregularities compared to the previous year. However, Parliament’s CONT committee is concerned that the amounts involved in such fraud have nevertheless risen by 183 % and demonstrate new patterns in fraudulent activity, which necessitate continued vigilance and action by the EU Member States.

Human rights remain a key priority for the Parliament, and on Thursday morning, Members will hold a joint debate on statements by the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, Josep Borrell, on the 2019 annual report on human rights and democracy. The report provides an overview of EU actions to promote human rights worldwide, using development instruments, trade conditionality, external policies and diplomacy. The debate is just the first stage in a process under which Parliament will prepare its own report later in the year, providing indications for future measures, in advance of the adoption of a new EU action plan on human rights. Seeking to extend the humanitarian support currently provided for refugees and host communities in response to the Syria crisis in Jordan, Lebanon and Turkey, Members will also debate two Budgets Committee reports on Thursday afternoon. These propose a draft amending budget (No 5) to the 2020 EU general budget, as well as mobilisation of the contingency margin in 2020. Members will also hear and debate Council and Commission statements on Thursday afternoon regarding another human rights issue, that of the socio-economic exclusion and discrimination against Roma peoples. Parliament has already drawn attention to the need for stronger measures and will be making recommendations for the new EU framework for the equality and inclusion of Europe’s largest ethnic minority.

Written by Alessandro D’Alfonso,

© European Union, 2020

The socio-economic impact of the coronavirus pandemic across the European Union (EU) is posing significant challenges, not least to the good functioning of the single market and the euro area. This has led to a growing consensus on the need for a common recovery plan to complement national stimulus packages. The European Commission has put forward a proposal to establish a €750 billion European recovery instrument, Next Generation EU, to reinforce the EU’s 2021-2027 multiannual financial framework (MFF). The instrument would be financed from funds borrowed on the markets by the Commission on behalf of the EU, while a mix of new and already planned instruments under the EU budget would channel expenditure, combining grants (€500 billion) and loans (€250 billion). The proposal, which aims to focus on the geographical areas and sectors hardest hit by the crisis, seeks to ensure an economic rebound that is also about quality, since expenditure is to be in line with jointly agreed EU objectives such as the green and digital transitions. National allocations under the largest instrument, a new Recovery and Resilience Facility, are to address challenges identified in the context of the European Semester. The recovery instrument includes various proposals in which the European Parliament is involved to varying extents, depending on the issue at stake. The channelling of resources through the EU budget means that Parliament would be co-legislator of relevant spending instruments, and exercise democratic scrutiny of expenditure through the discharge procedure. The budgetary authority would not however determine annual expenditure of Next Generation EU in the budgetary procedure since financing would be based on external assigned revenue. The Commission has called for an agreement to be reached in July 2020, in order for the recovery instrument to be operational as of 2021. A €11.5 billion bridging solution would address some objectives already in 2020. Elements expected to be at the heart of the complex negotiations, which are linked to those on the 2021-2027 MFF, are: the size of the instrument; the mix of grants and loans; the allocation of resources between Member States; reform of the financing system of the EU budget with new own resources; and the repayment of the borrowed resources.

Read the complete briefing on ‘Next Generation EU: A European instrument to counter the impact of the coronavirus pandemic‘ in the Think Tank pages of the European Parliament.

Written by Nera Kuljanic with Samuel Gregory-Manning,

© Adobe Stock

Insects, while commonly consumed elsewhere in the world, have long been off the menu in Europe, but they could soon be creeping their way onto our plates. Entomophagy, the practice of eating insects, is now gaining serious interest. Is it set to take Europe by swarm?

Insects are the most diverse group of organisms on the planet and over 1 000 different species are regularly eaten in Africa, Asia, and Central and South America. Nutritionally dense and versatile, insects are already available for human consumption in some EU Member States, either sold whole or in processed products.

With the EU committed to transitioning to a more sustainable and resilient food system as part of the European Green Deal and in light of the Covid‑19 pandemic, insects could offer a greener alternative component of future animal protein production. EU legislation has recently had to catch up with entomophagy’s expansion from a niche novelty to serious commercial and culinary contender, with further legislative authorisation anticipated.

Potential impacts and developments

Insects could make a healthy addition to European diets, generally being a rich source of proteins, fats, minerals (particularly calcium, iron and zinc), and vitamins (including vitamin C and B vitamins). Many insects reportedly taste good and are even considered delicacies in some cultures. Otherwise, insects can be ground or their nutrients extracted and mixed with other foodstuffs, such as grains or meat, to enhance the quality of processed products such as burgers, pasta, cereal bars, and cakes. However, potential risks are associated with the consumption of insects. Some species contain body parts that are difficult to digest, such as cricket spines and legs, and eating inappropriate species or developmental stages could lead to the inadvertent ingestion of toxic substances. Chitin, an abundant biopolymer that makes up the exoskeletons of insects, is a known allergen.

Insects are not yet routinely eaten in most European diets and are subject to strong cultural responses of dislike and disgust, as well as perceptions as a primitive foodstuff. However, the rejection of entomophagy has been shown to be a learned behaviour and overcoming this cultural bias would therefore be feasible for Europeans. Indeed, other arthropods, mostly crustaceans, as well as other invertebrates such as molluscs, are already widely eaten across the continent, with many deemed prized delicacies. Farmed insect species would be herbivorous and thus objectively more hygienic than omnivorous crustaceans, while insects ground and added to other foodstuffs are more likely to be palatable to a wider public, allowing people to overcome food neophobia (fear of unfamiliar foods).

Globally, the most commonly consumed insects are the immature developmental stages of species of beetle, butterflies and moths, and ants, bees and wasps. Elsewhere in the world, mostly wild insects are harvested for consumption, but this would not be feasible in Europe on a large scale due to the lack of an appropriate species in sufficient abundance, as well as a pesticide contamination risk. Insect farming is already practiced in Europe for the production of those used in laboratory research, aquaculture, as pet and zoo feed, and for human consumption. Silk worms and honey bees have also long been reared in Europe for their valued by-products. Representatives of the insect sector estimate that 6 000 tonnes are currently produced annually in Europe, and expect this to grow to between 3 and 5 million tonnes by 2030.

Insect species with life history traits ideal for breeding in Europe for human consumption include native species such as the house cricket Acheta domesticus, Tenebrio molitor beetle larvae (mealworms), and honey bees Apis mellifera; selective breeding could produce domesticated strains with desired traits conducive to large-scale breeding. Nevertheless, breeding would likely have to be highly automated to produce sufficiently large quantities of insects for commercial viability.

The European Green Deal strives for climate-neutrality by 2050, and the Farm to Fork Strategy focuses on the transition to sustainable agriculture as an integral component of this goal, with the latter highlighting the urgency for a more resilient food system in light of the Covid‑19 pandemic. Agriculture is responsible for 10.3 % of EU greenhouse gas emissions, 70 % of which come from animal production, a sector which accounts for 68 % of EU agricultural land use. Meanwhile, EU animal protein demand is expected to grow in the next decade. Although the projected growth in insect production and consumption will not suffice to meet this demand (nor wholly replace traditional meat), it could play a role in the transition to a more sustainable, robust food system.

Naturally occurring in aggregated masses and possessing rapid life-cycles with high fecundity rates, insects could be bred more efficiently than conventional animal livestock, requiring less land, water and energy. Research indicates that they are generally higher in protein content than other traditional sources of protein, such as meat, dairy products, some seeds and soybeans, and that this protein is of high quality. Most insects are more efficient at converting feed to edible body mass: crickets for example require six times less feed than cows, four times less than sheep, and half that needed by pigs and chickens to produce roughly the same amount of protein.

Furthermore, insect species naturally consume organic waste materials, offering the potential for circular production. The majority of insects do not produce methane, and greenhouse gas emissions and ammonia production in their rearing would likely be low. Insects could also be used as feed for other animal livestock, being natural components of the diets of pigs, poultry and fish, potentially reducing EU agricultural dependency on other more environmentally destructive feed materials, such as soya and fish meal.

There are limitations and risks to the mass-farming of insects. Firstly, they are cold-blooded, and would therefore require maintained thermal conditions, particularly in colder climates. Insect species and their various developmental stages are subject to many pathologies and would be vulnerable to infectious diseases that are inherently involved with producing animals in high densities. The risk of novel zoonotic transmission of diseases from insect to human is relatively low, but insects can act as vectors for certain pathogens. Invasive alien species are a main driving force behind biodiversity loss and can cause wider economic damage, and being resilient and with rapid life-cycles, escaped insects could be especially effective invaders.

Anticipatory policy-making

Insects are subject to the EU Novel Food Regulation, which stipulates that food products, that ‘have not been consumed to a significant degree’ in the EU before 1997, must be safe and properly labelled if they are to receive pre-market authorisation. The European Food Safety Authority (EFSA) is set to make a ruling in mid-2020 on the final authorisation of several insects as novel foods, including mealworms, grasshoppers and crickets. Clarification on the legal status of the import and export of insect products will also likely be required. The EU currently protects certain designations used for the marketing of specific foods of animal origin and so clarification on whether such designations can or cannot be applied to insect products may be necessary.

Insect production is also subject to legislation regarding animal health and transmissible diseases: insects may not be reared on certain organic waste and may not be used as feed for certain livestock, but may be used as feed for fish in aquaculture and pets. Given the potential of insects as part of a circular economy due to their ability to convert waste into edible animal protein, this legislation is likely to be reviewed, with the European Commission specifically mentioning insects in its commitment to explore alternative feed sources.

Current legislation protecting animal livestock welfare, pertaining to husbandry, transport and slaughter, does not cover insects. Future EU policy may have to bridge the gap in response to growing production (not least because higher welfare standards confer greater levels of hygiene and quality), with consideration given to the attributes unique to insects. While insects do respond to harmful stimuli, whether they possess the neural capacity to experience pain as perceived by higher animals has yet to be ascertained.

Stringent safeguarding would be needed to mitigate risks of accidental escape of potentially invasive and alien species. The EU currently recognises one species of non-European insect, the Asian hornet, as invasive, alongside three other species that are native to one part of the Union, but alien and potentially invasive in others. These species should not be used in any insect production and the list should be regularly updated to account for novel invasive threats.

Read this ‘At a glance’ on ‘What if insects were on the menu in Europe?‘ in the Think Tank pages of the European Parliament.

Listen to Science and Technology podcast ‘What if insects were on the menu in Europe?’ on YouTube.

Written by Marcin Grajewski,

© Corona Borealis / Adobe Stock

European Union leaders and institutions are now discussing plans to provide a major boost to the European economy to help it recover from the coronavirus crisis. They are doing so in the context of the new long-term EU budget, which would see the total ‘own resources’ ceiling for the Union more or less doubled. On 19 June 2020, the members of the European Council exchanged views digitally on the European Commission’s linked proposals, tabled on 27 May, for (i) a new ‘Next Generation EU’ recovery fund, and (ii) an updated Multiannual Financial Framework (MFF) for the next seven-year financing period, from 2021 to 2027, in which the recovery fund would be embedded. The European Council will discuss these proposals again (in person) on 17-18 July in Brussels. In this context, think tankers and policy analysts have been debating the proposals and assessing their potential effectiveness.

This note offers links to recent commentaries and reports from international think tanks on coronavirus and related issues. Earlier publications on financing the fight against the coronavirus can be found in the previous item in this series, published by EPRS on 8 June.

How to spend it: A proposal for a European Covid-19 recovery programme
Deutsches Institut für Wirtschaftsforschung, July 2020

An opportunity to improve the MFF permanently
European Policy Centre, June 2020

Un budget de relance ambitieux, mais de dures négociations à prévoir
Jacques Delors Centre, June 2020

How to spend it right: A more democratic governance for the EU Recovery and Resilience Facility
Hertie School – Jacques Delors Centre, Bertelsmann Stiftung, June 2020

The EU’s recovery fund proposals: Crisis relief with massive redistribution
Bruegel, June 2020

An ambitious recovery budget, tough negotiations ahead
Notre Europe, June 2020

Le cadre financier pluriannuel 2021/2027: Être le phare
Fondation Robert Schuman, June 2020

Three-quarters of Next Generation EU payments will have to wait until 2023
Bruegel, June 2020

Les banques européennes à l’épreuve de la crise du Covid-19
Centre d’études Prospectives et d’informations Internationales, June 2020

Italian economic recovery plan
Polish Institute of International Affairs, June 2020

Financing the 2030 agenda for sustainable development: Prerequisites and opportunities for the post-Covid-19 crisis
Institut du Développement durable et des Relations Internationales, June 2020

Next generation EU bonds might face a credit-rating challenge
Central for European Policy Studies, June 2020

The US and Europe have addressed Covid unemployment in divergent ways: The differences are revealing
Atlantic Council, June 2020

The ground-breaking novelties of the Franco-German proposal and the misuse of the abacus
Luiss School of European Political Economy, May 2020

The role of greater cohesion funding for solidarity and sustainability post-Covid-19
Institute for European Environmental Policy, May 2020

Options for a European Recovery Fund
Deutsche Gesellschaft für Auswärtige Politik, May 2020

The European Union’s SURE plan to safeguard employment: A small step forward
Bruegel, May 2020

How Germany’s Constitutional Court jump-started the Franco-German engine
Council on Foreign Relations, May 2020

The EU recovery fund is a historic step, almost
Centre for European Reform, May 2020

Whatever it takes, for as long as is needed: Mapping a new European recovery programme
Wilfried Martens Centre, May 2020

When the Franco-German ‘couple’ starts making sense again
Instituto Affari Intrnazionali, May 2020

Rebooting Europe: A framework for a post Covid-19 economic recovery
Bruegel, May 2020

The recovery fund: Legal issues
Luiss School of European Political Economy, May 2020

Governing in times of social distancing: The effects of Covid-19 on EU decision-making
European Policy Centre, April 2020

Beyond coronabonds: A new constituent for Europe
Instituto Affari Internazionali, April 2020

Will Covid-19 reduce the resistance to Eurobonds?
Centre for European Policy Studies, April 2020

A proposal for a coronabond: The Pandemic Solidarity Instrument
Centre for European Reform, April 2020

Protecting employment in the time of coronavirus
Centre for European Policy Studies, April 2020

Europe’s debate on fiscal policy: Too much yet too little
Centre for European Policy Studies, April 20

A European approach to fund the coronavirus cost is in the interest of all
Bruegel, April 202

Comment le budget de l’UE peut-il contribuer à résoudre la crise du coronavirus?
Jacques Delors Institute, March 2020

Towards a new MFF: New priorities and their impact on Italy
Centre for European Policy Studies, February 2020.

Read this briefing on ‘The EU budget and coronavirus‘ in the Think Tank pages of the European Parliament.

Read all EPRS publications on the coronavirus outbreak

Written by Nera Kuljanic with Sara Suna Lipp,

© metamorworks / Adobe Stock

Artificial intelligence (AI) is likely to impact the future of almost every industry and all our lives. This is why it is highly important to keep Members of the European Parliament informed about the latest developments, as well as the challenges and long-term impacts of this technology. To support Members in their work, STOA (the Parliament’s Panel for the Future of Science and Technology) continuously monitors the newest developments and it has produced 20 publications and hosted several events in the last two years on themes related to AI and its applications. Before delving into specific areas of AI applications, the latest STOA study on AI provides an accessible and extensive overview of developments in AI techniques, explaining how they work, the associated impacts and regulatory measures.

AI is one of today’s hottest topics and, due to its strategic value, is ranked very high on the EU agenda. The number of files on AI in progress at the European Parliament only illustrates the amount of activities expected in this area for the coming year. While AI and its applications open up great opportunities, many related risks and ethical concerns are subject to intense discussions at many levels.

AI and (public) health

AI technologies are transforming the fields of public health, biomedical research and medicine. The coronavirus crisis is an example of how AI applications can provide an immediate response to the pandemic. A recent STOA publication investigates ten technologies to fight coronavirus, including AI applications to tackle Covid‑19 and provide potential tools for fighting future infectious outbreaks. AI applications are used to help track the spread of the disease in real-time, predict new clusters, search drug databases and even analyse CT scans. Furthermore, AI is widely used in biomedical research and medicine. Long a focus of AI development, AI diagnosis and treatment of diseases were discussed in a STOA workshop organised in February 2019, and in a recently published ‘at a glance’ on AI and dementia.

AI and disinformation

The rise of disinformation in the digital age poses serious threats to society, democracy and business; the EU therefore pays special attention to tackling disinformation by acting at the European level. Two sequentially published STOA studies assess AI and its applications related to disinformation. One study examines how algorithms are used to detect, contain and counter online disinformation. The study provides policy options emphasising the need to support research and innovation, a multi-stakeholder approach, to improve the transparency and accountability of online content, and raise standards in media and journalism. The other study covers the trade-offs of using AI algorithms to prevent disinformation. The different policy options presented underline the interactions between technological solutions, freedom of speech and media pluralism.

AI opportunities, challenges and ethics

While AI already benefits our daily lives on many levels, including more effective healthcare, transportation and decision-making systems, it also poses legal, social, economic and ethical challenges. Furthermore, public opinion, hopes and fears are even more important in the discussion about future AI applications. Our in-depth analysis ‘Should we fear AI?‘ presents varying perspectives on this issue in a collection of opinion papers based on a workshop STOA organised in October 2017. Furthermore, the use of AI in media was the theme of the STOA Annual Lecture 2017, which investigated the challenges and the opportunities that arise with the use of algorithms in systems that create, manage and distribute information.

Transparency, explainability and responsibility; privacy, data protection and informed consent; misuse; military applications and security are some of the issues that are discussed in more detail in our publications:

• The impact of the General Data Protection Regulation (GDPR) on artificial intelligence
• Artificial intelligence: From ethics to policy
• The ethics of artificial intelligence: Issues and initiatives
• A governance framework for algorithmic accountability and transparency
• Understanding algorithmic decision-making: Opportunities and challenges
• Technology and social polarisation
• How artificial intelligence works
• Why artificial intelligence matters
• Artificial Intelligence ante portas: Legal & ethical reflections

In addition, past STOA events have addressed topics such as ethical and legal frameworks, governance challenges, and the European approach to AI. Also, check out our two-pagers on thought-provoking future scenarios: How could AI change employment? What if AI-enabled face recognition was used to monitor emotions? Can algorithms obey ethical rules? And what if technologies had their own ethical rules? You can also explore more detail and watch short videos on AI on our website.

Follow us on Twitter to stay in touch and for information about our newest publications and upcoming events!

Written by Cemal Karakas,

© enotmaks / Adobe Stock

The public sector is an important employer, service provider and procurer. Innovations in the public sector mainly focus on processes, products, organisation and communication. Citizens and businesses alike benefit from a professional and modern public administration in terms of better governance, faster service delivery, co-creation and co-design of politics.

There is no overall European Union law that targets public sector innovation per se. The European Commission, however, provides guidelines on public sector innovation. Many of these guidelines aim to tackle challenges deriving from digital transformation, increased mobility and cross-border interoperability.

In 2013, an expert group appointed by the Commission encouraged the EU and its Member States to overcome innovation barriers in the public sector by, for instance, improving the management and ownership of innovation processes, empowering innovation actors, and providing standards for innovation. In this context, the EU has been implementing its innovation union policy, promoting best practices and co-financing the establishment and activities of the Observatory of Public Sector Innovation (OPSI) of the Organisation for Economic Co-operation and Development (OECD). While today many of the expert group’s recommendations have been implemented – such as innovation labs and networks, policy labs, innovation scoreboards or toolboxes – some, however, remain unaccomplished.

The European Parliament has demonstrated a positive stance towards innovation in the public sector on several occasions, including encouraging the Commission to speed up the realisation of the digital single market. More recently, Parliament adopted resolutions on the Commission’s EU e‑government action plan and on the proposed new digital Europe programme.

Read the complete briefing on ‘Public sector innovation: Concepts, trends and best practices‘ in the Think Tank pages of the European Parliament.

Listen to policy podcast ‘Public sector innovation: Concepts, trends and best practices’ on YouTube.

Written by Nikolina Šajn,

© Worawut / Adobe Stock

European consumers enjoy a high level of rights, but when the rules protecting them are broken, they need to be enforced. The main goals of enforcement are to prevent and punish infringements, and to enable consumers harmed by infringements to get wrongs put right (consumer redress).

In the 2019 consumer conditions scoreboard poll, one in five consumers said that they had encountered problems when buying a product or service in the previous 12 months. However, whereas two thirds of them had complained – and were generally happy with the outcome, the other third decided not to do anything because they expected complaining to require too much time and effort, with an uncertain result.

When it comes to faulty products, individual consumers can demand redress directly from sellers, and if this is unsuccessful, they can sue them in court. However, individual lawsuits are highly problematic, as, for instance, the costs often exceed the value of the claim. The EU therefore requires Member States to ensure that consumers have access to alternative dispute resolution mechanisms, while the Commission runs an online dispute resolution platform. Consumers can also collectively seek injunctions to stop or ban infringements, and the EU institutions are also working on enabling consumer organisations to demand compensation in court.

Consumer protection rules are also enforced by national public authorities, including through implementation of some EU-level enforcement rules. The Consumer Protection Cooperation Regulation harmonises the powers of national competent authorities and lays down rules on their cooperation with counterparts in other Member States, while the EU has moved to harmonise maximum fines for widespread infringements of consumer protection rules.

Read the complete briefing on ‘Enforcement of consumer protection legislation‘ in the Think Tank pages of the European Parliament.

Listen to policy podcast ‘Enforcement of consumer protection legislation’ on YouTube.

Written by Mihalis Kritikos,

© Shutterstock

The development and deployment of artificial intelligence (AI) tools should take place in a socio-technical framework where individual interests and the social good are preserved but also opportunities for social knowledge and better governance are enhanced without leading to the extremes of ‘surveillance capitalism’ and ‘surveillance state’. This was one of the main conclusions of the study ‘The impact of the General Data Protection Regulation on Artificial Intelligence‘, which was carried out by Professor Giovanni Sartor and Dr Francesca Lagioia of the European University Institute of Florence at the request of the STOA Panel, following a proposal from Eva Kaili (S&D, Greece), STOA Chair.

Data protection is at the forefront of the relationship between AI and the law, as many AI applications involve the massive processing of personal data, including the targeting and personalised treatment of individuals on the basis of such data. This explains why data protection has been the area of the law that has most engaged with AI and, despite the fact that AI is not explicitly mentioned in the General Data Protection Regulation (GPDR), many provisions of the GDPR are not only relevant to AI, but are also challenged by the new ways of processing personal data that are enabled by AI. This new STOA study addresses the relation between the GDPR and AI and analyses how EU data protection rules will apply in this technological domain and thus impact both its development and deployment.

After introducing some basic concepts of AI, the study reviews the state of the art in AI technologies with a focus on the application of AI to personal data. It then provides an in-depth analysis of how AI is regulated in the context of the GDPR and examines the extent to which AI is captured by the GDPR conceptual framework. It discusses the tensions and proximities between AI and data protection principles, such as purpose limitation and data minimisation, examines the main legal bases for AI applications to personal data, and reviews data subjects’ rights, such as the rights to access, erasure, portability and object. Researchers and policy-makers will find the meticulous analysis of the provisions of the GDPR to determine the extent to which their application is challenged by AI, as well as the extent to which they may influence the development of AI applications, of great theoretical and practical value.

The study carries out a thorough analysis of automated decision-making, considering the extent to which it is admissible, the safeguard measures to be adopted, and whether data subjects have a right to individual explanations. It then considers the extent to which the GDPR provides for a preventive risk-based approach, focused on data protection by design and by default. In adopting an interdisciplinary perspective, the study identifies all major tensions between the traditional data protection principles — purpose limitation, data minimisation, special treatment of ‘sensitive data’, limitations on automated decisions — and the full deployment of the power of AI and big data. The vague and open-ended GDPR prescriptions are analysed in detail regarding the development of AI and big data applications. The analysis sheds light on the limited guidance offered by the GDPR on how to balance competing interests, which aggravates the uncertainties associated with the novel and complex character of new and emerging AI applications. As a result of this limited guidance, controllers are expected to manage risks amidst significant uncertainties about the requirements for compliance and under the threat of heavy sanctions.

It should be noted that one of the main study findings is that, despite several legal uncertainties, the GDPR generally provides meaningful indications for data protection in the context of AI applications, that it can be interpreted and applied in such a way that it does not substantially hinder the application of AI to personal data, and that it does not place EU companies at a disadvantage by comparison with non-European competitors.

The study then proposes a wide range of concrete and applicable policy options about how to reconcile AI-based innovation with individual rights and social values and ensure the adoption of data protection rules and principles. Some of the proposed options relate to the need for a responsible and risk-oriented approach that will be enabled by the provision of detailed guidance on how AI can be applied to personal data in a way that is consistent with the main principles and general provisions of the GDPR. This guidance can be provided by national data protection authorities, and the Data Protection Board in particular, and should also involve civil society, representative bodies and specialised agencies.

The study emphasises the need to distinguish between use of personal data in a training set, for the purpose of learning general correlations and their use for individual profiling, as well as on the need to introduce an obligation of reasonableness for controllers engaged in profiling. The authors’ proposal concerning the facilitation of the exercise of the right to opt out of profiling and data transfers along with the right of collective enforcement in the data protection domain is of practical importance.

The study’s added value lies not only in the detailed legal analysis and realistic policy options it puts forward but also in its engagement with the general discussion about the values of the GDPR and the need to embed trust in AI applications via societal debates and dialogue with all stakeholders, including controllers, processors and civil society. This societal engagement would be necessary to develop appropriate responses, based on shared values and effective technologies. The arguments and findings of the study offer both theoretical insight and practical suggestions for action that policy-makers will find stimulating and worth pursuing.

Read the full report and accompanying STOA Options Brief to find out more. You can also watch the video of the presentation of interim findings to the STOA Panel.

Written by Lucienne Attard (The Directorate-General for the Presidency),

INTRODUCTION

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Germany is a federal parliamentary republic, with federal power vested in the Bundestag  (the German parliament) and the Bundesrat (the representatives of Germany’s regional states, Länder). The Bundestag is the only body at the federal level directly elected by the people, and is currently composed of 709 members.

The Bundestag is elected every four years by German citizens aged 18  and over. The current Bundestag is led by the CDU (Christian Democratic Union) with 33 % of representation, followed by the SPD (Social Democratic Party) with 24 % and then by the AFD (Alternative for Germany) with 11 %. These are followed by: the Free Democratic Party (FDP), the Left (Die Linke), Alliance 90/The Greens (Grüne) and the Christian Social Union (CSU).

Chancellor Angela Merkel, who has been in office since 2005, heads the executive government. The executive is elected by the Bundestag and is responsible to it. The German head of state is the federal President, currently Frank-Walter Steinmeier. The federal President has a role in the political system, particularly in the establishment of a new government and its possible dissolution.

Germany has held the Council Presidency 12 times since becoming a founding member of the European Economic Community in 1957. The country last held the Presidency in 2008. It will take the helm of the EU Council Presidency on 1 July 2020, starting the trio Presidency composed of Germany, Portugal and Slovenia. The Trio has adopted a Declaration outlining the main areas of focus  for  their Trio,  including  democracy, human rights and  the  rule  of  law,  as  well  as  an economically strong EU based on growth and jobs and the social dimension. Likewise the three Member States have pledged to work on the challenges of digitalisation, climate change and energy transition. It is to be noted that the Trio is working on a revised declaration to reflect the changed situation in Europe due to the coronavirus pandemic.

The  Strategic  Agenda  2019-2024 endorsed by the  Member  States at the European Council meeting of  20 June 2019  will  remain, however, a guiding instrument. The Agenda covers the protection of citizens’ freedoms; developing a strong and vibrant economic base; building a climate- neutral, green, fair and social Europe; and promoting European interests and values on the global stage.

POLITICAL PRIORITIES OF THE GERMAN PRESIDENCY

This note looks at the legislative and political projects, which could feature predominantly during the German Presidency. The upcoming German Presidency has already been dubbed the ‘German corona Presidency’ with a focus on crisis management. In the words of the Minister for Foreign Affairs, Heiko Maas, ‘….the Council Presidency will  have to deal with very difficult  framework conditions. The Covid-19  pandemic will  not only influence  the Council Presidency’s thematic priorities, but also the way of doing politics. Priority should be given to projects that are legally binding and have to be dealt with by the end of 2020.’

I. Covid-19

One of the first tasks of the Presidency will be to regulate restrictions on free travel and to revive the internal market. The EU civil protection mechanism is another area of importance in relation to Covid-19 as well as common procurement and production of life-saving medical equipment.

In the short term, the German Presidency will likely want to focus on the exit strategy from the emergency measures and the recovery of the continent. Europe will need to get back on its feet, and in order to do this, there has to be a focus on strengthening social cohesion. The north–south fight over the financial responses to the crisis will  need  to be addressed with the degree of commitment that would lead to economic recovery. There is also an urgent need to re-open EU borders, and to help tourism and aviation which have been hard-hit by Covid-19. On 13 May 2020, the European Commission published a communication on tourism and transport in 2020 and beyond. The Commission has already published a common rulebook for voluntary travel vouchers, and  once  the  virus  outbreak  is  sufficiently  under  control,  will  adopt  recommendations on reimbursement options for travellers.

It is clear that to achieve this first set of objectives, there will need to be coordination efforts at the EU level on Covid-19 measures taken by individual Member States.

II. 2021-2027 MFF AND OTHER KEY ISSUES

There are policy areas in which decisions are imperative, notwithstanding the pandemic crisis. This includes the Multiannual Financial Framework (MFF) and its sectoral programmes, including the establishment, as requested by the EP, of an MFF contingency plan, the adoption of the annual budget for 2021,  the future relationship with the UK, fishing quotas and certain international obligations.

Apart from the Covid-19 pandemic, the overarching challenges currently facing the Union are well known and include, in particular, the 2021-2027 MFF (2018/0166 APP). There should be a rethinking of the EU budget for the next seven years, in the words of Foreign Minister Heiko Maas, where massive investment is needed in research, climate protection, technological  sovereignty and crisis-proof health and social systems.

Another area requiring an imperative decision at EU level concerns the annual budget for 2021. This, too, will fall during the German Presidency, along with the decisions on fishing quotas and international commitments such as climate goals set in the Paris Agreement.

The negotiations on the future relationship with the UK in the post-Brexit reality are particularly challenging. The UK has rejected an extension of the current transition period, which expires at the end  of  2020.  After four negotiation rounds up  to June,  there is  no  guarantee that a  future relationship agreement will be struck and ratified by the end of the year.

The  German Presidency  may also  take initiatives in  tackling issues requiring more European integration such as climate change and minimum taxes. On the question of the environment, it is clear that much work lies ahead with the need to implement the European Green Deal. Amongst others, there are the Closed Substance Cycle and Waste  Management  Action Plan  and the Chemicals Strategy  due in summer. The European Commission has also promised the announcement of an offshore wind strategy in July 2020.

Another area of importance is the protection of the EU’s founding values of democracy and the rule of law. One of the consequences of the pandemic has been the restrictions introduced bysome Member  States on these fundamental values under the disguise of  fighting coronavirus. The German Presidency may well push forward the idea that Member States which undermine these fundamental values should not be able to benefit from the Union’s financial assistance.

The question of migration and asylum will likely feature prominently on the German Presidency agenda. Under the previous legislature, agreement on a Common European Asylum System was not reached. It is expected that the European Commission will come up with a new proposal in the next months, which it is hoped can find support among the Member States and the European Parliament. There can be no doubt, however, that the Member States remain highly divided on the questions of migration and asylum. The German Ambassador, in a  recent webinar  highlighting  Germany’s priorities, indicated that while Germany is very much committed to working on this matter, it is not considered a likelihood that a solution be found before the end of the German Presidency in December 2020.

III. HEALTH

From the health  perspective, one of the proposals is to strengthen the European Centre  for Disease Prevention and Control, possibly through a budgetary increase to recruit more staff and increase the capacities of the Centre.

Likewise, Germany is likely to look at ways to strengthen the health systems of the Member States, in  order to ensure that each  is well  equipped to deal with  the coronavirus, considering that infections could increase again in individual regions after the summer.

A European Pharmaceutical Strategy is also a project in the pipeline of the European Commission that could feature prominently during the Presidency, particularly the ways to prevent supply bottlenecks for pharmaceuticals in the EU, secure supply chains and to avoid dependency in the production of active ingredients. The Commission is preparing a roadmap for this strategy, which aims to review the Orphan and  Paediatric  Regulation,  legislation on fees for the  European Medicines Agency (EMA), as well as the basic pharmaceutical legislation, which dates back to 2001.

IV. DIGITALISATION

The German Presidency will likely also focus on issues such as data policy, artificial intelligence and a digital single market. There is an urgent need for a strengthened research base if the EU is to play a role on the international level, particularly in the face of fierce competition from the US and China. Germany has already proposed a Code of Conduct for the use of health data. Likewise, it would like to see a European Data Governance framework in order to write common rules for data use.

V. EU-CHINA RELATIONS

The German Presidency had announced well in advance the preparation of an EU-China summit in September 2020. This is a priority for the German Chancellor and an essential event for the future relations between the two trading partners. However, with the ongoing coronavirus situation the two sides agreed on 3 June to postpone the summit, and it remains unclear when it will take place. On the other hand, an EU-China summit did take place on 22 June 2020 via video conference with the  participation of  Charles  Michel,  European Council  President, and  Ursula Von  der  Leyen, European Commission President.

CONCLUSION

A revised Commission Work Programme was adopted on 27 May, including a proposal on the Covid-19 recovery plan, which, as the Commission has explained, is based on the EU’s seven-year budget and will be topped up by a recovery instrument. The EU executive has proposed borrowing from the markets in order to finance a recovery plan that will come on top of the EU budget.

The revised MFF proposal is also on the table, and a number of further legislative proposals to deal with Covid-19 are expected. All this will require urgent action by the two co-legislators and under the leadership of the German Presidency. The economic hit to Europe’s economy because of the pandemic is substantial. The EU institutions and Member States will be expected to work together to manage and handle the consequences and fall-out of the current crisis.

On the Conference on the Future of Europe, while work was halted due to Covid-19, the German Presidency has indicated its wish to work further on this project. It is  however clear that the Conference cannot start until the pandemic is considered over, and social-distancing measures are relaxed. Conducting complex negotiations is very much dependent on physical meetings.

Read this briefing on ‘Priority dossiers under the German EU Council Presidency‘ in the Think Tank pages of the European Parliament.

Written by Gisela Grieger,

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The 22nd EU-China Summit, originally scheduled for March 2020, was postponed owing to the Covid-19 pandemic. While other summits were simply cancelled or postponed indefinitely, the EU and China decided to hold the summit by video-link, on 22 June 2020. This decision testifies to the importance both sides attach to taking their complex relationship forward in difficult times.

The 2020 summit offered the opportunity to take stock of progress made on past commitments and to re-calibrate EU-China relations, against the backdrop of the wide-ranging fallout from the coronavirus pandemic, growing United States-China strategic rivalry, rapid geopolitical power shifts and the erosion of multilateralism.

Looking at EU-China relations through the lens of the 2019 EU-China strategic outlook, China is seen as being at once a partner for cooperation and negotiation, an economic competitor and a systemic rival. China has been a cooperation and negotiating partner for the EU in several fields where interests have converged. Nonetheless, the different norms and values underlying the EU and Chinese political and economic systems have made cooperation challenging. Shared objectives do not necessarily lead to the same approaches to pursuing them. Economic competition has become fiercer in China, in the EU and in third markets. As the Chinese leadership shows growing assertiveness in disseminating alternative models of governance – at international, regional and bilateral levels, China is also acting as a systemic rival, on an increasing number of issues.

The coronavirus pandemic has amplified pre-existing political and economic challenges in EU-China relations. It has exposed the EU’s over-reliance on China for the supply of strategic goods and also China’s confrontational ‘Wolf Warrior diplomacy‘, which has involved the use of a wide range of tools, including disinformation campaigns, political influence and economic coercion, in an attempt to alter narratives critical of China’s management of the crisis. It has also clearly demonstrated the need for a ‘more robust’ EU policy on China.

Read this briefing on ‘EU-China relations: Taking stock after the 2020 EU-China Summit‘ in the Think Tank pages of the European Parliament.

Written by Mihalis Kritikos,

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The public service revolution expected from the adoption of artificial intelligence (AI) and machine learning (ML) simultaneously promises positive change and threatens negative societal impacts – we only need to mention ‘predictive policing’ to comprehend the potential for both service efficiencies and unintended consequences. AI ethics attempts to unpick these issues and provide a solid ethical framework. However, the snowballing adoption of AI ethics principles and guidelines by national governments, international organisations, research institutions and companies during the last three years triggers questions about the actual applicability and efficient implementation of these instruments. As a response to these concerns, scholars and practitioners are currently trying to find ways to translate these principles into practical requirements to enable the application of AI ethics principles and guidelines. Some of this work is about translating ethics principles into technical requirements, and/or design methodologies such as privacy-by-design, ethics-by-design, or ethically aligned design.

Several ethical tools and framework models have been created to visualise ethical concerns and develop a set of practices to anticipate and address the potential negative effects of AI on people. However many questions arise. Are these technical solutions sufficient to get from AI ethics to specific policy and legislation for governing AI? How can we apply the variety of ethical frameworks consistently in governing data, developing algorithms and actually using AI systems? Who bears this responsibility? And are there (or should there be) mechanisms for enforcement and monitoring in place? What is, in fact, a trustworthy and responsible AI, especially with regard to data governance? What is the role of ethical frameworks in ensuring trustworthy and responsible data governance and AI? Are there any lessons learnt from existing frameworks? How can AI systems best be governed? What are the promises and perils of ethical councils and frameworks for AI governance? What possible frameworks could guide AI governance, like those based on fairness, accountability and transparency?

To try to answer some of these issues, STOA launched a study to produce stakeholder-specific recommendations for the responsible implementation of AI systems and technologies, aligning them to already adopted ethical principles. The study, ‘Artificial Intelligence: From ethics to policy‘ was carried out by Dr Aimee van Wynsberghe of Delft University of Technology and co-director of the Foundation for Responsible Robotics at the request of the STOA Panel, following a proposal from Eva Kaili (S&D, Greece), STOA Chair. The study’s central focus is the question of how can we get from AI ethics to specific policy and legislation for governing AI? The study builds on the ethics guidelines principles developed by the European Commission’s High-Level Expert Group on Artificial Intelligence by providing insight into how the principles can be translated into design requirements and concrete recommendations.

The study firstly provides a brief overview of AI as a technology and the unique features it brings to the discussion of ethics: what is AI and what is new about it that is deserving of ethical attention. Particular attention is paid to the role of ‘black boxes’ and algorithmic fairness. Following this, the study unpacks what ethics is, and how ethics ought to be understood as a resource in the AI debate beyond its current use to generate principles.

From an overview of the current literature, the author produces a remarkable range of insights regarding the transparency of AI algorithms, the balance of trade-offs between accuracy and fairness, the conceptualisation of AI as a socio-technical system and the use of Ethical Technology Assessments as a viable mechanism for uncovering ethical issues ab initio. By arguing in favour of viewing AI as an ongoing social experiment that requires appropriate ex ante ethical constraints, assessment of epistemological constraints and constant monitoring, the author proposes a precautionary approach that is adapted to the realities and risks of AI.

The study then proposes an extensive range of ethically informed and stakeholder-specific policy options for the responsible implementation of AI/ML products, aligning them to defined values and ethical principles that prioritise human wellbeing in a given context. The entire set of policy options, viewed as ethical constraints, constitute a meta-ethical technology assessment framework directed towards the public administration and governmental organisations who are looking to deploy AI/ML solutions, as well as the private companies who are creating AI/ML solutions for use in the public space.

Among the proposed options, the development of a data hygiene certification scheme, the demonstration of the clear goals of AI/ML application and the production of an ‘Accountability Report’ in response to the ethical technology assessment appear as the most applicable in the context of the current debate about regulating the ethical aspects of AI. Besides proposing a meta-ethical framework, the author also makes a preliminary identification of the possible concerns surrounding the proposed policy options and their applicability. Particular emphasis is placed on the role of the ethicists and the allocation of tasks when it comes to the completion of the ethical technology assessment, the affordability of this process, especially for small and medium enterprises, and the horizontal character of the proposed regulatory process. The study includes useful accounts of the debates regarding the interface between regulation, technology and ethics, as well a critical engagement with traditional narratives about the role of ethics in the technological innovation process. In the concluding section, the author makes some important remarks about the meaning of ethics in an AI-focused regulatory context, its policy implications as well as its normative value.

Given the lack of operational experience with regard to AI, and its inherent uncertainties and risks, the study’s proposed framework appears to ensure accountability and transparency when organisations apply ethical frameworks and principles. Its interdisciplinary character, the cross-cutting nature of its insights and the acknowledgement of the role society plays in shaping technology and its regulation could pave the way for AI development that is both efficient in operational terms and acceptable to society.

Read the full report and accompanying STOA Options Brief to find out more.

Written by Magdalena Pasikowska-Schnass,

In the EU as elsewhere in the world, the performing arts were among the first sectors to be hit by measures to slow the spread of the coronavirus, and are now among the last to reopen. As the confinement measures are relaxed, the focus now is on supporting the performing arts and finding a way to re-engage with live audiences.

Confinement and the performing arts

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The performing arts cover a variety of forms of artistic expression, presented in theatres, opera houses and music halls, at outdoor festivals, in open-air theatres and in the street − the presence of an audience being a key ingredient. The outbreak of the coronavirus pandemic put the performing arts on hold, even in countries, such as Sweden, that did not introduce strict lockdown measures, but followed the Commission recommendations on distancing and closure of cultural institutions.

Unesco reports that 128 countries around the world had closed their cultural institutions down by mid-April; 95 % of Cirque du Soleil’s workforce was laid off in March, for example. Many performing artists will lose their jobs, as the sector will be unable to operate normally for a longer time than the rest of the economy.

While opera houses, theatres, concert halls and individual performing artists or troupes have live-streamed performances via social media, participants in a Unesco-initiated ResiliArt debate pointed out that making cultural content available online for free sent the wrong message, even if it did promote access to culture and offer the public support during the confinement. The participants stressed that art and culture, and the performing arts in particular, needed to be experienced directly. Although digital access to cultural resources and content is important, in the long term it cannot replace the live artistic experience, which also needs to be paid for; artists need to make a living from their work too.

Unlocking the performing arts

EU Member States began easing confinement measures from mid-April onwards, but in most cases authorisation for live performances in both indoor and outdoor venues, such as summer festivals, is still some way off. The roadmap published by the European Commission in April confirmed that cultural events involving mass gatherings belong to the fourth and final stage of the easing of measures.

Unesco also pointed to complications in applying coronavirus-related sanitary measures in the theatre sector. One of the measures proposed by health authorities is to open theatres at 25 to 30 % capacity. This solution does not allow theatres to function normally, but it does create the conditions to start generating work protocols and to assess the development of contagion. However, opening at reduced capacity is not generally an economically viable option. The Royal Shakespeare Company, an example put forward by Unesco, needs to fill its theatres to 80 to 90% capacity in order to be financially viable. It has lost 75 % of its normal income because of the pandemic and has had to place around 90 % of its staff on furlough.

PEARLE, the Performing Arts Employers’ Associations League Europe, has presented strategies for reopening theatres and cultural activities in different European countries, guidance on risk assessment and prevention before resuming activities, and also guidelines on how theatres and venues can re-open for audiences. It has also reflected on the future of the sector, and ways to strike a balance between digital and live performances. In May, it called upon the EU institutions to define common guidelines to help theatres provide safe working conditions for people involved in productions and a safe environment for audiences to build their trust. Member States do not as yet have a coordinated approach to easing confinement measures in the live performance sector.

Examples from Member States

Some countries have compensated for theatre closures by organising shorter, improvised theatre plays in the open air. Spain, one of the first Member States to be hit by the pandemic and among those to have been hardest hit, is also among the first to reopen theatres, filling them to 30 % capacity. Seville has extended its cultural programme until the autumn, encouraging cultural events in the streets and public spaces to support artists and cultural life. Similarly, in Italy, where open-air festivals and opera performances attract many tourists, some such events will take place, but the Arena di Verona opera festival has been postponed until 2021, the 2020 edition being replaced by a summer festival scaled down in scope and capacity. Deutsche Oper Berlin adapted its outdoor carpark to present a shortened version of an opera played by just 22 musicians to a reduced number of spectators. Artists and theatre management can be very creative in finding ways to perform for the public, but not all Member States have weather conditions that allow outdoor events.

In most cases, the summer music festivals much loved by younger people have been forbidden until the end of August. In Czechia, less crowded alternatives are available, examples including a drive-in rock music festival, and the ArtParking project, which allows audiences to park and watch a live performance from their cars. Ticket and drink sales are contact-free, in line with public health measures.

EU funding, networks and co-funded projects supporting the sector

EU funds such as the Creative Europe programme support networks of cultural operators, enabling them to exchange good practices. Among them, the European Festivals Association provides information on events, such as festivals, that have been cancelled, postponed, moved to the web or maintained under specific conditions. Live DMA provides information on measures in particular countries. It has published ‘Sound Diplomacy’, a handbook on music cities’ resilience and ways to protect the music and arts sectors from any coronavirus-like crisis.

A May 2020 IETM (the International Network for Contemporary Performing Arts) publication ‘Live Arts in the Virtualising World‘ stressed that live arts need to be experienced directly for the magic of human interaction to operate. As this was an element that the virtual world could not provide, it called for live presentations of artistic works to recommence as soon as distancing measures were eased.

In a statement following the June 2020 International Theatre Conference, held online, the European Theatre Convention highlighted the financial loss to its member theatres. Stressing that confinement and coronavirus-related measures were threatening the sector’s very existence, it called on the EU to raise the level of the Creative Europe funding from its current level of 0.08 % of the EU budget to 1 %.

In May 2020, the European Commission set up the Creatives Unite platform, to provide all cultural and creative industry sectors with coronavirus-related information and enable them to share their experiences.

The Creative Europe programme support scheme for the cross-border distribution of performing arts works (theatre, dance, circus and street arts) has highlighted two priorities emerging from the pandemic: the carbon footprint of mobility in the sector, and digital culture/virtual mobility. Reflection on measures to mitigate the sector’s carbon footprint will examine the longer-term effects on artists’ mobility and the sustainability of live recording and streaming as a way to reach audiences. A call for projects launched in mid-June will channel €2.5 million to the sector by the end of the year. The winning projects will explore ways to combine digital technology and live performance while retaining the direct experience of a show.

New state aid rules are allowing Member States to support sectors and workers hit by confinement measures, including the culture sector. A €40 million Croatian support scheme for small and medium-sized enterprises in the cultural sector and the creative industry will help up to 1 000 enterprises. Denmark is providing €12 million in compensation for organisers’ losses arising from the cancellation of events, including cultural happenings, with 350 people or more. Sweden is also planning to support the cultural events sector with €38 million. Bulgaria will finance 60 % of the wage costs of cultural, amusement and recreational activities, to minimise lay-offs. Estonia too will provide companies and organisations active in the culture sectors affected with direct grants. In Lithuania, direct grants (with an estimated budget of €10 million) will support cultural and arts institutions and organisations hit by the pandemic for the creation of new, mostly digital, products and services.

The European Parliament has supported the performing arts sector by proposing measures such as Music Moves Europe, and the reintroduction of the European Theatre Prize. Its call to double the funding for the 2021-2027 Creative Europe programme, the only EU funding to support cultural sectors, was unsuccessful. In June 2020, the European Parliament’s Committee on Education and Culture expressed fierce criticism of the 13 % cut in funding in the new proposal for the EU budget, which would inevitably reduce the number of artists receiving support.

Read this ‘at a glance’ on ‘Performing arts: Emerging from confinement‘ in the Think Tank pages of the European Parliament.

Written by Philip Boucher,

© Adobe Stock

Artificial intelligence (AI) is probably the defining technology of the last decade, and perhaps also the next.

The European Commission recently closed the consultation period on its white paper on AI and the European Parliament has voted in favour of launching a special committee on AI in the digital age. In this context, STOA has published a timely study on AI, which provides accessible information about the full range of current and speculative AI techniques and their associated impacts, and sets out several regulatory, technological and societal measures that could be mobilised in response.

How does artificial intelligence work?

The study sets out accessible introductions to some of the key techniques that come under the AI banner, organised into three waves.

The first wave of early AI techniques is known as ‘symbolic AI’ or expert systems. Here, human experts create precise rule-based procedures – known as ‘algorithms’ – that a computer can follow, step-by-step, to decide how to respond intelligently to a given situation. Symbolic AI is at its best in constrained environments that do not change much over time, where the rules are strict and the variables are unambiguous and quantifiable. While these methods can appear dated, they remain very relevant and are still successfully applied in several domains.

The second wave of AI comprises more recent ‘data-driven’ approaches, which have developed rapidly over the last two decades and are largely responsible for the current AI resurgence. These automate the learning process of algorithms, bypassing the human experts of first wave AI.

The third wave of AI refers to speculative possible future waves of AI. While first and second wave techniques are described as ‘weak’ or ‘narrow’ AI, in the sense that they can behave intelligently in specific tasks, ‘strong’ or ‘general’ AI refers to algorithms that can exhibit intelligence in a wide range of contexts and problem spaces. Such artificial general intelligence (AGI) is not possible with current technology and would require paradigm-shifting advances.

Why does artificial intelligence matter?

The study builds upon the understanding of how AI works to examine several opportunities and challenges presented by AI applications in various contexts.

Several challenges are associated with today’s AI. Broadly, they can be understood as a balancing act between avoiding underuse – whereby we miss out on potential opportunities, and avoiding overuse – whereby AI is applied for tasks for which it is not well suited or results in problematic outcomes. Specific challenges include bias, employment impacts, liability issues, military use and effects on human autonomy and decision-making.

There are also several longer-term opportunities and challenges that are contingent upon future developments that might never happen. For example, it has been suggested that AI could escape human control and take control of its own development, or develop artificial emotions or consciousness, presenting interesting – yet speculative – philosophical questions.

What can we do about artificial intelligence?

The study sets out several options that could be mobilised in response to the opportunities and challenges presented by AI.

Most AI policy debates concern how to shape the regulatory and economic context in which AI is developed and applied in order to respond to specific opportunities and challenges. These could include creating a supportive economic and policy context, promoting more competitive ecosystems, improving the distribution of benefits and risks, building resilience against a range of problematic outcomes, enhancing transparency and accountability, ensuring mechanisms for liability and developing governance capacity. There are also more abstract policy debates about the broad regulatory approach, such as whether policies and institutions should be specific to AI or tech-neutral.

It is also possible to shape the development and application of AI through technological measures. They could include activities related to technology values, the accessibility and quality of data and algorithms, how applications are chosen and implemented, the use and further development of ‘tech fixes’, and encouraging more constructive reflection and critique.

Finally, societal and ethics measures could be taken, targeting the relationship between AI and taking account of social values, structures and processes. These could include measures related to skills, education and employment; the application of ethics frameworks, workplace diversity, social inclusivity and equality, reflection and dialogue, the language used to discuss AI, and the selection of applications and development paths.

Five key messages

Language matters. In many ways, the term ‘AI’ has become an obstacle to meaningful reflection and productive debate about the diverse range of technologies to which it refers. It could help to address the way we talk about AI, including how we identify, understand and discuss specific technologies, as well as how we articulate visions of what we really want from it.

Algorithms are subjective. Since human societies have structural biases and inequalities, Machine learning tools inevitably learn these too. While the only definitive solution to the problem is to remove bias and inequality from society, AI can only offer limited support for that mission. However, it is important to ensure that AI counteracts, rather than reinforces inequalities.

AI is not an end in itself. The ultimate aim of supporting AI is not to maximise AI development per se, but to unlock some of the benefits that it promises to deliver. Instead of perfecting new technologies then searching for problems to which they could be a profitable solution, we could start by examining the problems we have and explore how AI could help us to find appropriate solutions.

AI might fall short of its promises. Many AI applications could offer profound social value. However, employment impacts and privacy intrusions are increasingly tangible for citizens, while the promised benefits to their health, wealth and environment remain intangible. The response could include targeting more ambitious outcomes while making more modest promises.

Europe needs to run its own AI race. AI is at a pivotal moment for both regulation and technology development and the choices we make now could shape European life for decades to come. In running its own race, European AI can ensure a meaningful role for citizens to articulate what they expect from AI development and what they are ready to offer in return, to foster a competitive market that includes European small and medium-sized enterprises (SMEs), and to put adequate safeguards in place to align AI with European values and EU law.

Your opinion counts for us. To let us know what you think, get in touch via stoa@europarl.europa.eu.

Written by Marcin Grajewski,

© GoodIdeas / Adobe Stock

While many countries, notably in Europe, are currently easing restrictive measures aimed at containing the spread of the coronavirus (Covid-19), the latter is now rapidly spreading in other parts of the world, notably in the Americas and Indian sub-continent. The number of people globally who have tested positive for the disease is now approaching 10 million, exacerbating an already precarious situation in certain conflict-afflicted areas, such as Yemen. In Europe, analysts continue to examine the various ways of financing and promoting economic recovery from the depressive effects of the pandemic.

This note offers links to recent commentaries and reports from international think tanks on coronavirus and related issues. Earlier publications on the topic can be found in the previous item in this series, published by EPRS on 12 June.

How to spend it right: A more democratic governance for the EU Recovery and Resilience Facility
Hertie School – Jacques Delors Centre, Bertelsmann Stiftung, June 2020

Identifying effective combinations of economic policy measures for the coronavirus recession in Europe
German Institute for Economic Research (DIW)

Covid-19 strengthens the case for EU defence
Chatham House, June 2020

The EU’s recovery fund proposals: Crisis relief with massive redistribution
Bruegel, June 2020

An ambitious recovery budget, tough negotiations ahead
Notre Europe, June 2020

European Solidarity Tracker: The solidarity that always was there
European Council on Foreign Relations, June 2020

European defence in the post-Covid world
Istituto Affari Internazionali, June 2020

Europe’s new deal moment
Centre for European Policy Studies, June 2020

EU border security in a time of pandemic
Stiftung Wissenschaft und Politik, June 2020

Geopolitical shifts and the post-Covid world: Europe and the multipolar system
Istituto Affari Internazionali, June 2020

Coronavirus and Europe’s new political fissures
Carnegie Europe, June 2020

Le cadre financier pluriannuel 2021/2027: Être le phare
Fondation Robert Schuman, June 2020

The EU must think twice before triggering a global trade war
Friends of Europe, June 2020

Crisis communication: Italy, the coronavirus, and European solidarity
European Council on Foreign Relations, June 2020

Three-quarters of Next Generation EU payments will have to wait until 2023
Bruegel, June 2020

Why Europe should harden its soft power to lawfare
Centre for European Policy Studies, June 2020

Reopening America and the world
Brookings Institution, June 2020

Has Covid-19 dented the EU’s credibility in the Balkans?
Bruegel, June 2020

L’action publique: Face à la crise du Covid-19
Institut Montaigne, June 2020

Pandemic politics: A public health crisis and a hate crisis: Covid-19 and Islamophobia
Brookings Institution, June 2020

De la distanciation sociale à la distanciation intime
Fondation pour l’innovation politique, June 2020

Identifying effective combinations of economic policy measures for the coronavirus recession in Europe
Deutsches Institut für Wirtschaftsforschung, June 2020

The paradox of Russia’s disinformation activities in Italy
German Marshall Fund, June 2020

How the coronavirus sows civil conflict
Center on Foreign Relations, June 2020

The impact of Covid-19 on cybercrime and state-sponsored cyber activities
Konrad Adenauer Stiftung, June 2020

Covid-19 pandemic threatens US elections: The pandemic adds significantly to the risk of a contested result and a constitutional crisis
Finnish Institute of International Affairs, June 2020

The dangers of tech-driven solutions to Covid-19
Brookings Institution, June 2020

Once a Covid-19 vaccine is ready, getting people to take it may be a bigger challenge
Rand Corporation, June 2020

Race gaps in Covid-19 deaths are even bigger than they appear
Brookings Institution, June 2020

Yemen and Covid-19: The pandemic exacts its devastating toll
Brookings Institution, June 2020

De l’ethique financiere en situation de crise
Institut de Recherche et de Communication sur l’Europe, June 2020

The state of U.S. strategic stockpiles
Center on Foreign Relations, June 2020

How Covid-19 is worsening America’s racial economic divide
Atlantic Council, June 2020

China’s conundrum: Pursuing sustainable development in a post-Coronavirus landscape
Chatham House, June 2020

La Covid-19 en Afrique de l’Ouest: Une gestion aux multiples facettes
Groupe de Recherche et d’Information sur la Paix et la Sécurité, June 2020

Covid-19 in Africa: Disruptions and post-pandemic scenarios
Istituto per gli Studi di Politica Internazionale, June 2020

China and Africa: The ‘Other’ in the time of pandemic
Istituto per gli Studi di Politica Internazionale, June 2020

Russian economic sovereignty in the Covid-19 age
Chatham House, June 2020

Political tensions and the failure to curb Covid-19 in Brazil
Polish Institute of International Affairs, June 2020

What does the World Health Organization do?
Center on Foreign Relations, June 2020

Beware of tort liability for Covid cases
Hoover Institution, June 2020

Italian economic recovery plan
Polish Institute of International Affairs, June 2020

Read this briefing on ‘Coronavirus: An uncertain outlook‘ in the Think Tank pages of the European Parliament.

Read all EPRS publications on the coronavirus outbreak

Written by Nora Milotay,

© EtiAmmos / Adobe Stock

The triple-crisis – the pandemic’s public health and economic consequences intertwined with the underlying environmental crisis – may lead to increasing divergence, instead of convergence and cohesion among Member States, regions, generations and different groups of society across the EU and globally. However, if handled with a longer-term perspective with the aim of achieving a more resilient, sustainable and fair EU – the crisis also offers the opportunity to turn the three into the guiding principles of the recovery. This applies as much for the content of the policies as for the process of their design and implementation, both in the short and longer terms.

Background

Fairness and sustainable development are guiding principles of the Treaties (TEU and TFEU) and of the Charter of Fundamental Rights of the European Union. In her political guidelines, the European Commission President, Ursula von der Leyen, highlighted that ‘a sustainable Europe is one that opens up opportunities, innovates, creates jobs and offers a competitive edge to its industries’, and at the same time supports a ‘climate-neutral healthy planet’. This principle of sustainability is comprehensive and includes environmental, economic and social sustainability together. The principle of fairness – i.e. equality of opportunity – is also highlighted throughout the guidelines, and in particular in relation to a minimum wage, trade and taxation. Finally, resilience is one of the main features of the social market economy, and a central concern of the Commission in its broader aim to achieve ‘an economy that works for people’ with a strong industrial base, with flourishing small and medium-sized enterprises and a deeper economic and monetary union.

The Covid-19 outbreak and the way the crisis is managed affect all segments of society and the economy. The ongoing triple crisis, resulting from the deleterious effects of the coronavirus pandemic on public health and the economy, combined with an already aggravated environmental situation is liable to strain relations between governments and citizens, and lead to increasing divergence, instead of convergence and cohesion.

Main issues

The crisis triggered by the pandemic has had an unprecedented impact on labour markets. The unemployment rate in the euro area is forecast to rise from 7.5 % in 2019 to 9.5 % in 2020, before declining again to 8.5 % in 2021. In the EU, it is forecast to rise from 6.7 % in 2019 to 9 % in 2020 and then to fall to around 8 % in 2021. Countries with a higher share of employment in sectors that had to be shut down are likely to suffer a much higher impact. Different sectors and players have been hit differently, and the digital divide has also added to the complexity of the situation. In addition, many, particularly those in precarious work situations, tend to fall through the cracks of the immediate social assistance measures.

By seriously affecting people’s income, the crisis has further exacerbated existing inequalities, pushing more people into poverty and making the most vulnerable even more vulnerable. In the OECD countries, more than one in three people do not have enough financial assets to keep their family above the poverty line for at least three months, should their income suddenly stop. The risk is especially high in households headed by people that are younger than 34 and people without higher education, as well as for couples with children. Besides the closures of businesses, the closures of schools have put enormous pressure on families and have negatively affected the educational outcomes of many children in the longer term.

Member States differ significantly in terms of how severely they have been affected by the pandemic; this depends both on how it evolved in the individual countries but also on the structure of their economies and their capacity to respond with stabilising policies. Moreover, the severity will depend on whether there will be more wave(s) of the pandemic. Given the interdependence of EU economies, the dynamics of the recovery in each Member State will also affect the strength of the recovery of other Member States.

The pandemic has drawn attention to the role of human activity and associated environmental perturbation in the emergence of infectious diseases. Climate change, loss of natural capital and biodiversity, and pollution are highly interconnected and mutually reinforcing. Long-term exposure to air pollution may significantly increase the risk factor for many, particularly with pre-existing conditions, of dying from Covid-19. What is more, some 10-15 % of medical waste is hazardous, and a substantial additional amount is expected to accumulate due to the pandemic.

Opportunities for a resilient, sustainable and fair EU: What and how

The challenges arising from the pandemic need to be addressed on two interconnected levels: what can be done in the short to medium term, and how can that be done in a way that supports the ultimate goal of building a resilient, sustainable and fair EU. The crisis makes these three principles more timely. The huge disruption caused by the crisis also creates opportunities ‘to walk the talk’ and make these the guiding principles of the recovery. All the tools of the Union should be mobilised to achieve this.

As for what can be done in the short to medium term, the Commission’s 2019 reflection paper, ‘Towards a sustainable Europe by 2030’, paved the way to putting the concept of sustainability comprehensively across policy portfolios. A new growth strategy that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy is central to the European Green Deal. The latter should be an important part of the recovery strategy. The communication on the European Green Deal also stresses that it will introduce sustainability considerations into the Better Regulation Agenda. The EU’s green recovery should be based on the EU taxonomy, which aims to encourage investors and consumers to identify economic activities that can unambiguously be considered environmentally green. A renewed strategy on the subject – with a consultation currently ongoing – on redirecting private capital flows towards green investments and embedding a culture of sustainable corporate governance, is due towards the end of 2020. In addition, many research projects have successfully experimented with achieving these goals over the years. A more robust research and innovation platform with a broad concept of innovation that combines social and technological innovation is key to finding evidence-based local and global responses to the challenges. This necessitates an inclusive digital transformation of the single market, where promoting digital skills is key. In this context, the revised digital education action plan and the development of regulations on artificial intelligence and online platforms are crucial.

As for how these above initiatives can be carried out in the short to medium term, the European Semester can be a useful tool for the recovery. For instance, the United Nations’ sustainable development goals – the most ambitious global agreement for achieving social progress to date – have been mainstreamed across portfolios and used as the main analytical tool in the European Semester process. The 2020 Annual sustainable growth strategy presents a rebooted growth model that focuses on the topic of sustainability, and is built around its four dimensions: environmental sustainability, productivity gains, fairness and macroeconomic stability. The EU’s economic governance mechanism is under review, accompanied by a broad consultation. This review offers an opportunity to build on the lessons learnt to date. The European Semester Spring Package has been reoriented to address the priorities related to the EU’s recovery from the pandemic. Its proposed country-specific recommendations focus on two main issues: in the short term, mitigating the pandemic’s severe negative socio-economic consequences, and in the short to medium term, achieving sustainable and inclusive growth that facilitates the green transition and the digital transformation. Investment, including in human capital and the ‘updated’ welfare state (according to the principles of the European Pillar of Social Rights) are central to the recommendations.

Finally, the design of the new multiannual financial framework, coupled with the recovery fund, alongside the existing tools of financial support from the European Investment Bank, SURE – the temporary support instrument to mitigate unemployment risks in an emergency, and the European Stability Mechanism will also play a decisive role in achieving a resilient, sustainable and fair EU. This new financial proposal might be the first step in the direction of changing the dynamic of the existing decision-making processes, and paving the way towards a new design for the EU’s financial tools and possibly more besides.

Read this ‘At a glance’ on ‘A more resilient, sustainable and fair Europe after coronavirus?‘ in the Think Tank pages of the European Parliament.

Written by Ionel Zamfir,

Charter of the United Nations

On 26 June 2020, the world marks 75 years since the United Nations Charter was signed by the 50 states attending the intergovernmental conference in San Francisco that opened in April 1945, as the war entered its final phase. The signing of the charter marked the successful achievement of a political process conducted since 1941 by the victors – the United States of America, Union of Soviet Socialist Republics, United Kingdom and China and their allies – in a series of conferences and declarations. Later that year, when more than half of the charter’s signatories also ratified it, the United Nations (UN) came into existence in October 1945.

The UN Charter defines the principles on which the UN is based, its objectives, and sets out its functioning and structure. As the Preamble to the Charter states, the United Nations embodies the determination of its members to achieve lasting peace through international cooperation. It also affirms its Members’ faith in fundamental human rights, the dignity of the human person, the equality of rights of men and women and of ‘nations large and small’, and in international justice. The Charter establishes the six main UN bodies: the UN Security Council, the UN General Assembly, the Economic and Social Council (ECOSOC), the UN Secretariat (the administration), the International Court of Justice and the Trusteeship Council. It outlines provisions for the peaceful resolution of conflicts, appropriate measures against members who violate its principles, and sets in motion the process of decolonisation by proclaiming the obligation of states administering colonies ‘to assist them in the progressive development of their free political institutions’.

With hindsight, 75 years after the Charter’s signature, the achievements driven by the principles enshrined in the UN Charter are impressive. The UN has assisted former colonies to achieve their independence and establish their own governments; it has conducted numerous peace-keeping operations; has mediated in conflicts; and has provided vital humanitarian aid in crises. It has become an important development player, contributing to the eradication of poverty, to better education, and to the fight against disease in the developing countries. Its agencies have played a crucial role in the process of globalisation by setting international standards and norms that have smoothed international cooperation. The financial and trade institutions connected to the UN – the International Monetary Fund (IMF) and the World Trade Organization (WTO) – have been central drivers of economic globalisation. While the road to realising these objectives has not always been straightforward, the United Nations has endured the various crises. In recent history, UN peace keepers were not able to prevent the genocide in Rwanda in 1994, nor the Srebrenica massacre in 1995; the UN has not played a successful mediator role in prolonged civil wars accompanied by humanitarian crises, such as in the conflicts in Syria and Yemen. Moreover, the world is still far from eradicating poverty and famine, despite the solemnly proclaimed Sustainable Development Goals to be achieved by 2030.

More recently, the UN has faced stronger, even severe, headwinds. Vocal attacks by the United States of America – the country that has traditionally been at the heart of the multilateral system – and its actions designed to undermine the UN (such as withdrawing funding from peace-keeping or certain agencies), deprive the organisation of vital leadership. Less assertive but sometimes equally uncooperative, China enjoys rising influence in the organisation, causing concern that it may put the fundamental values on which the UN is based at risk, such as universal human rights. The risk of illiberal coalitions in an organisation based on the principle of one country-one vote, against the background of rising authoritarianism in the world, has already come to the fore in the workings of the Human Rights Council. More broadly, rising scepticism regarding globalisation at the national level is stirring mistrust in the multilateral order with the UN at its centre. In an undeniable fashion, the current coronavirus crisis has underlined the need for global coordination, cooperation and solidarity to respond to a major crisis of planetary scale, but also the degree to which the UN depends on the voluntary cooperation of its member states.

In these turbulent times for the United Nations, the EU has reaffirmed its unwavering commitment to multilateralism on numerous occasion. The EU shares a common history with the UN, both being born of efforts at the end of World War II to build sustainable peace through international cooperation. The fundamental values and principles on which the EU is based overlap to a significant degree to those enshrined in the UN Charter: such as the pursuit of peace and security, the recognition of universal human rights, as well as a commitment to international solidarity and cooperation among their members. The EU’s commitment to respect the principles of the UN Charter and work together with the UN is enshrined in its treaties.

In accordance with Chapter II of the UN Charter, the UN is an organisation of sovereign states and its membership is only open to such states. However, UN bodies accept a broad range of observers. The EU has obtained enhanced observer status in the UN General Assembly – the only international organisation to date to enjoy this status, which enables the EU to attend meetings, make statements and put forward proposals and amendments. The EU also has observer status at the United Nations Economic and Social Council (ECOSOC) and in numerous UN agencies (while being a full member of the UN Food and Agricultural Organization (FAO)), and has established broad partnerships with the various parts of the UN system. Moreover, the EU leverages its influence by coordinating the positions of its Member States in UN organs, including in the UN Security Council. The EU and its Member States are major contributors to the UN system, providing a third of its overall budget, while representing less than 15 % of UN membership. The EU alone is the biggest non-government donor to the United Nations. In 2018, it contributed approximately €3.12 billion, or 6.5 % of the total UN system budget. Most of this money represents development and humanitarian aid channelled through the UN.

The UN Charter may hold the key for EU’s long-term prospects in the UN. For the EU to become a regular member of the organisation, a modification of the Charter would be necessary. In a 2018 resolution, the European Parliament has suggested a reform of the UN Security Council that would open the door for the European Union to obtain a permanent seat. This remains, however, a distant prospect for the time being, as there is little international consensus on any possible reform of the UN Security Council.

Written by Nicole Scholz,

© Mykola / Adobe Stock

On 1 June 2020, the European Commission published a roadmap for a pharmaceutical strategy for Europe. The strategy will have the overall goal of ensuring Europe’s supply of safe and affordable medicines and supporting the European pharmaceutical industry’s innovation efforts. Two consultations (on the roadmap and the strategy, respectively), are currently under way. Adoption of the strategy is envisaged for the fourth quarter of 2020.

Why a pharmaceutical strategy?

There has been recurrent debate on the two broad thematic strands the strategy targets, and the coronavirus pandemic has brought both into focus. The pharmaceutical sector is a major contributor to the EU economy (EU-28 pharmaceutical production sold reached €26.1 billion in 2018). At the same time, bottlenecks in the supply chain for medicines have increased and are deemed an emerging problem.

A European Commission priority

European Commission President Ursula von der Leyen tasked the Commissioner for Health, Stella Kyriakides, with exploring ways to ensure Europe has supplies of affordable medicines to meet its needs and, in doing so, support the European pharmaceutical industry to ensure that it remains an innovator and world leader. In her answer to the European Parliament questionnaire in preparation of her hearing, Stella Kyriakides committed to supporting Member States in their efforts to ensure affordable, accessible and high quality medicines. She added ‘Our dependency on non-EU countries for manufacturing pharmaceutical active substances used in EU medicines is another issue that needs to be addressed’. At her hearing before Parliament, Kyriakides reiterated that ‘[t]here is a legal obligation on the pharmaceutical industry to ensure that patients have access to and supply of medicines. We need to work closely and try to have a holistic pharmaceutical strategy, so as to be able to deliver what we need for patients’. A pharmaceutical strategy is one of the new initiatives included in the Commission’s work programme for 2020, presented in January and adjusted in May.

European Commission roadmap

The strategy will cover all levels of the pharmaceutical value chain, from research and development, to authorisation and patients’ access to medicines. It will look at how to put scientific and technological advances into practice and how to fill market gaps. Lessons learned from the pandemic around preparedness and supply chains will also inform the strategy. The roadmap identifies several challenges:

• the major impact a rapidly changing global context can have on access to medicines in the EU, such as the EU’s growing dependency on imports of medicines and active pharmaceutical ingredients (APIs) produced outside the EU;
• unequal access to medicines that are not always affordable for patients and national health systems across the EU, such as innovative therapies, including cancer medicines;
• shortages of medicines, which often concern off-patent medicines (on which the patent has expired), such as antibiotics, cancer medicines and vaccines;
• innovation efforts that are not always aligned with public health and health systems’ needs, resulting in therapies or medical technologies not being developed because of limitations to the science, or lack of interest from industry to invest;
• challenges for the EU pharmaceuticals innovation ‘ecosystem’, meaning research done by smaller biotech companies is not always translated into commercially exploited innovation;
• technological and scientific developments that may challenge the regulatory framework and lead to unintended barriers to innovation, such as gene and personalised therapies, smart health applications and artificial intelligence;
• the need to improve the way environmental risks are addressed, such as those resulting from the production, use and disposal of medicines, and in particular, antimicrobial resistance (AMR).

How might the new strategy look?

Based on the above considerations, the Commission identifies four specific objectives for the strategy:

1. Make sure patients across Europe have new medicines and therapies in their countries quickly and under all circumstances, and that there are fewer shortages of medicines;
2. Help make medicines more affordable, and increase the ‘value for money’ of medical expenses;
3. Take advantage of digitalisation, and make sure innovation and emerging science and technology cater to patients’ therapeutic needs, while reducing the environmental footprint;
4. Reduce direct dependence on raw materials sourced from non-EU countries, influence other countries to harmonise international standards for the quality and safety of medicines, and help European pharmaceutical companies compete globally on an equal footing.

According to the Commission, the strategy is in line with the new industrial strategy for Europe and linked to other priorities, including the European Green Deal and Europe’s Beating Cancer plan. It will consider both legislative and non-legislative actions. The former could consist of follow-up to initiatives already in preparation, such as the evaluation of the legislation on medicines for children and rare diseases (the Paediatrics and Orphan Medicines Regulations, respectively), and a targeted evaluation with subsequent review of the basic pharmaceutical legislation (Directive 2001/83/EC and Regulation (EC) 726/2004). EU investment would include programmes such as Horizon Europe, InvestEU and Digital Europe.

The European Parliament has adopted two resolutions on topics related to the pharmaceutical strategy. A 2017 resolution on improving access to medicines calls, among other things, for a new Transparency Directive replacing Directive 89/105/EEC, aiming to ensure full transparency on price-setting and reimbursement procedures used for medicines in the Member States. It also calls on the Commission to amend the Paediatric Medicines Regulation and to evaluate the implementation of the regulatory framework for orphan medicines. It encourages the Commission and the Member States to foster research and development (R&D) driven by patients’ unmet needs, such as researching new antimicrobials, and to launch a high-level strategic stakeholder dialogue on developments in the EU pharmaceutical system. A 2018 resolution on antimicrobial resistance calls on the Commission and the Member States to encourage the development of sustainable medicines with a low impact on the environment and water, and to encourage further innovation in the pharmaceutical industry in this area. It urges the Commission to consider a new legislative framework to stimulate the development of new antimicrobials. It notes that the usual business model for developing medicines is not suitable for antibiotic development, reminds the industry of its corporate and social responsibility in helping tackle AMR, and calls for early and continuous dialogue with stakeholders on developing incentives for R&D in the field of AMR. Stakeholder views and expectations

Stakeholders welcome the Commission’s roadmap, broadly agreeing with its goals. The International Association of Health Mutuals (AIM) believes the strategy needs to guarantee that developments in evidence-generation, such as those coming from real-world data, or AI, deliver meaningful information to decision-makers. According to the Association of the European Self-Care Industry (AESGP), the strategy needs to acknowledge the specificities of different pharmaceutical products and their regulatory pathways. It should seize on the benefits of improved availability of non-prescription medicines. The European Federation of Pharmaceutical Industries and Associations (EFPIA) considers much can and should be done already now within the existing framework, through recognition and efficient implementation of the lessons learned from Covid‑19. Regarding access to vaccines and treatments, EFPIA calls on the Commission to create a High-Level Forum on Better Access to Health Innovation, as proposed by the European Health Coalition. Acknowledging the EU’s focus on enhancing its strategic autonomy in specific areas, EFPIA notes that Europe’s pharmaceutical industry already has a strong in-built resilience, with 76 % of the APIs used in the manufacture of innovative medicines in Europe now being sourced in the EU. The European Confederation of Pharmaceutical Entrepreneurs (EUCOPE) sees a need for a strategy that enables research and attracts investments in Europe, alongside a solid regulatory framework that promotes science and development of new medicines. According to the generic, biosimilar and value-added medicines lobby Medicines for Europe, the strategy should build on existing pharmaceutical manufacturing capacity and invest in a globally competitive medicines manufacturing sector. It should improve medicines’ availability, recognising that industry and governments have a shared responsibility to improve access to medicines.

Read this ‘At a glance’ on ‘A pharmaceutical strategy for Europe: First steps‘ in the Think Tank pages of the European Parliament.

Written by Giulio Sabbati,

© European Union & GlobalStat, 2020

The EU has been severely hit by the spread of the Covid-19 disease. Its impact extends well beyond public health, and the economic and social consequences of the pandemic are now a top priority for both the Member States and the EU institutions. Employment, developments in the labour market, and changed/worsened working conditions are the most prominent concerns therein. This infographic offers a closer look at the labour market situation in 2019, referring to the EU population aged 15-64 (285 million people, of which 195 million were employed, 14 million were unemployed and 76 million inactive). Finally, it looks at a recent survey conducted by Eurofound on living and working in the times of Covid-19 lockdown.

Read this ‘At a glance’ note on ‘Living in the EU: Work before the coronavirus crisis‘ in the Think Tank pages of the European Parliament.

Written by Katarzyna Sochacka and Clare Ferguson,

EP Plenary session – Oral questions – Situation in the Schengen area following the Covid-19 outbreak

The June 2020 plenary session was the fourth conducted with Members participating remotely, although this time a majority were present in Brussels, and using the alternative voting procedure put in place in March by Parliament’s Bureau. The session focused on a number of urgent legislative proposals as well as votes on draft amending budgets and the guidelines for the 2021 EU budget. Parliament adopted recommendations on the negotiations for a new partnership with the United Kingdom, and discussed the European Council meeting held subsequently on 19 June. Members heard Council and European Commission statements on anti-racism protests, on the Conference on the Future of Europe, and on Covid-19 related issues: protecting strategic sectors; tackling disinformation; and protection of cross-border and seasonal workers. Members also discussed the situation in the Schengen area following the Covid-19 outbreak, as well as tourism and transport in 2020 and beyond, and land-grabbing and deforestation in the Amazonas. Members debated statements from the Vice‑President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy, Josep Borell, on the foreign policy consequences of the Covid-19 crisis, on China’s national security law for Hong Kong, and on the EU response to the possible Israeli annexation of the West Bank. Finally, Parliament adopted decisions creating a subcommittee on tax matters, a special committee on beating cancer, a special committee on foreign interference and a special committee on artificial intelligence.

New European Union-United Kingdom partnership

Members adopted, by a large majority, recommendations on the negotiations for a new partnership with the United Kingdom, based on a joint report from the Foreign Affairs and International Trade Committees. The fourth round of EU-UK negotiations ended on 5 June 2020, with limited progress and critical divergence between the parties on level playing field commitments, fisheries, cooperation on criminal matters and the overarching institutional framework to govern future relations. During the second EU-UK Joint Committee meeting on 12 June, the UK confirmed it will not request an extension to the transition period ending on 31 December 2020. Parliament fully supports the EU negotiating position, prioritising the protection of the single market.

Guidelines for the 2021 budget

Members adopted amendments to a Budget Committee report on guidelines for the 2021 Budget – Section III, the first under the yet to be agreed new MFF. Parliament’s guidelines on Section III are intended to assist the Commission by indicating political priorities for the deployment of next year’s EU budget and, most urgently, the recovery from the coronavirus crisis, whilst Parliament also seeks to reinforce focus on the European Green Deal and digital transformation.

Amendments to the 2020 budget

Members adopted two further draft amending budgets for the current year. Draft amending budget No 3/2020 concerns the more than €3.2 billion surplus for 2019 (mostly higher than expected revenues, and underspent expenditure), which is carried over to 2020. While this surplus will reduce Member States’ gross national income contributions in 2020, Parliament is keen to see Member States devote the equivalent amount to support regions and businesses affected by the coronavirus crisis. To tackle the likely effects of the coronavirus crisis on the labour market, Members also approved a Commission proposal to mobilise €345 000 to provide technical assistance to strengthen the European Globalisation Adjustment Fund. The fund provides vital support for workers who lose their jobs due to structural changes in global markets. Members also approved draft amending budget No 4/2020, to make €279 million available in the 2020 budget to assist regions in Portugal, Spain, Italy and Austria affected by natural disasters caused by extreme weather events in 2019.

Conference on the Future of Europe

Planned to provide a comprehensive reflection on the direction and organisation of the EU, Members heard and debated Council and Commission statements on the Conference on the Future of Europe. The Covid‑19 epidemic has delayed discussion on the composition and structure of the Conference – and will inevitably have an effect on the proposed ‘Agora’ format. Members approved a resolution calling for the Conference to be launched as soon as possible during the second half of 2020.

Foreign policy consequences of the Covid-19 crisis and tackling coronavirus disinformation

Members debated a statement by the VPC/HR on the foreign policy consequences of the Covid‑19 crisis, where Parliament has already called for more strategic action in the face of deteriorating international relations. Parliament seeks strengthened resolve to support vulnerable regions in facing the threat to public health globally and in tackling disinformation regarding Covid‑19 and the virus’s impact on freedom of expression. Members adopted a proposal to set up a special committee on foreign interference in EU democratic processes.

VPC/HR statement on the People’s Republic of China national security law for Hong Kong

Parliament debated a statement from the VPC/HR on the national security law for Hong Kong and its consequences for EU defence of Hong Kong’s autonomy. The law, authorised by the Chinese National People’s Congress and bypassing the Hong Kong Parliament, is expected to enter into force prior to Hong Kong’s September 2020 legislative elections in a premature phasing-out of the ‘One country, two systems’ model that was planned to subsist for 50 years from the 1997 handover.

Tourism and transport in 2020 and beyond

Following Council and Commission statements on tourism and transport in 2020 and beyond, Members adopted, by a large majority, a resolution urging more action and greater financial support for the sector to help with recovery from the coronavirus crisis and to encourage investment in sustainable transport infrastructure and modernisation of the tourism industry.

Fisheries Partnership Agreements – Cape Verde, Guinea-Bissau and São Tomé

Parliament approved three reports on fisheries agreements. These include the conclusion of the Protocol on the implementation of the 2019‑2024 Fisheries Partnership Agreement with the Republic of Cape Verde, the 2019‑2024 Protocol on the implementation of the EU-Guinea-Bissau Fisheries Partnership Agreement and the Protocol on the implementation of the EU-São Tomé and Príncipe Partnership Agreement. All three agreements concern access rights for the EU fleet to fish in the respective regions and promote sustainable fisheries and the blue economy in those waters.

Opening of trilogue negotiations

The proposal on temporary measures concerning the time limits for the collection, verification and examination stages under the European citizens’ initiative, in view of the Covid‑19 outbreak, treated under the urgent procedure, was referred back to the Constitutional Affairs Committee (AFCO) to pursue interinstitutional negotiations.

Read this ‘at a glance’ on ‘Plenary round-up – Brussels, June 2020‘ in the Think Tank pages of the European Parliament.