European Parliamentary Research Service Blog

Written by Clare Ferguson and Katarzyna Sochacka.

During the November II plenary session, Members held a debate with the Council and European Commission on the humanitarian situation in Gaza, the need for the release of hostages and for an immediate humanitarian truce leading to a ceasefire, and on the prospects for peace and security in the Middle East. Further debates took place on the continued threat to the rule of law, the independence of justice and the non-fulfilment of conditionalities for EU funding in Hungary, and the threat to the rule of law resulting from the governmental agreement in Spain. Members also debated the Commission’s lack of legislative follow-up to the Committee of Inquiry to investigate the use of Pegasus and equivalent surveillance spyware (PEGA).

The Prime Minister of Bulgaria, Nikolay Denkov led this month’s ‘This is Europe’ debate. William Ruto, President of Kenya, addressed the Parliament in a formal sitting. And in the question time session, Commissioner Thierry Breton answered Members’ questions regarding the state of implementation of the EU’s commitment to provide 1 million rounds of artillery ammunition to Ukraine up to March 2024.

2024 budgetary procedure

Members debated and adopted the 2024 EU budget. The negotiations took place against a backdrop of increased spending pressure on the EU’s long-term finances, due to ongoing global challenges. Nevertheless the agreed 2024 EU budget includes €189.4 billion in commitment appropriations and €142.6 billion in payments, including for special instruments such as the proposed Ukraine facility.

Improving Europe’s environment

Parliament adopted a resolution calling for major emitters to make a fair contribution to the loss and damage fund, and underlining the need to support the global energy transition. The debate came ahead of this year’s United Nations Climate Change Conference in Dubai, (COP28), starting on 30 November.

Members debated a report from the Committee on the Internal Market and Consumer Protection (IMCO) on the right to repair – common EU rules to strengthen the repair market. The proposal aims to reduce inconvenience for consumers and provide financial incentives to encourage companies and consumers to repair broken products. The adopted report recommends extending the legal guarantee period for repaired products by one year, among other things, and sets Parliament’s position for interinstitutional negotiations.

The EU is seeking to strengthen its manufacturing capacity for ‘net-zero’ technologies, by at least 40 % of the EU’s annual deployment needs by 2030. Members debated a report from the Industry, Research and Energy (ITRE) Committee, which proposes to widen the scope of the proposed net-zero industry act to cover additional components, materials and machinery and sets new manufacturing capacity benchmarks. Parliament can now begin trilogue negotiations with the Council.

Members debated a Committee on Environment, Public Health and Food Safety (ENVI) report on the proposed EU carbon removals certification framework to ensure credible governance of trusted EU-certified carbon removals. The ENVI report proposes better definition of the different types of removal – carbon farming, permanent carbon storage, and long-lasting carbon storage in products or materials. It now sets Parliament’s position on the file for interinstitutional negotiations.

Aiming to ensure cleaner air, Members debated an ENVI committee report that sets Parliament’s stance for interinstitutional negotiations on CO2 emission performance targets for new heavy-duty vehicles. The proposed revision brings more vehicles into the scope of the current rules and set a 90 % lower average CO2 emissions target for new vehicles by 2040. New urban buses would have to be zero-emission from 2030.

Packaging waste continues to increase in the EU. An ENVI committee report on reducing packaging waste seeks to strengthen proposals to revise the current EU law. The committee calls to forbid the use of certain potentially harmful substances in food packaging, as well as lightweight plastic carrier bags. Removing the Commission’s proposed targets for take-away food and drink, the report suggests companies should offer the possibility to use reusable packaging at no greater cost, and provide a system for consumers to bring their own container, at a lower price. The vote sets Parliament’s mandate for trilogue negotiations.

Digitalisation of judicial cooperation

Members adopted agreed texts on proposals to update EU legislation to facilitate cross-border judicial cooperation through increased use of digitalisation. Parliament’s Committees on Legal Affairs (JURI) and Civil Liberties, Justice and Home Affairs (LIBE) negotiated the compromise on the proposal, under which the rules on digital communication, in both criminal and civil cases, would become mandatory for cross-border court-to-court communication.

Sustainable use of plant protection products

While pesticides are necessary to protect crops, they can also have harmful impacts on the environment and human health. The Commission proposed to reduce their overall use and risk by 50 %, through binding national targets. No majority could be reached on the ENVI committee report that supported this target, but raised the reduction goal for particularly hazardous pesticides to 65 %. Parliament voted not to refer the report on plant protection products back to the committee, thus the proposal has been rejected.

Amendment of the Treaties

Geopolitical challenges and the prospect of further enlargement have led to calls for measures to make the EU more nimble, democratic and accountable. Members debated and adopted a report by the Committee on Constitutional Affairs (AFCO) setting out proposals for amendment of the EU Treaties. Among many other proposals, the report proposes changes to the majority required to decide EU laws, and a new method to choose the President of the Commission. The report now constitutes Parliament’s position for the resumption of interinstitutional discussions on whether and how to proceed with a revision of the Treaties.

EU-New Zealand Free Trade Agreement

Members followed the Committee on International Trade (INTA) recommendation and gave consent to the free trade agreement (FTA) negotiated with New Zealand. Covering protection of certain EU foodstuff geographical indications, removal of New Zealand tariffs on EU imports, facilitation of cross-border data flows and commitments to International Labour Organization standards and Paris Agreement goals, the EU–New Zealand Free Trade Agreement should lead to an increase in bilateral trade of up to 30 %.

VAT – Rules for the digital age

Parliament adopted a Committee on Economic and Monetary Affairs (ECON) report on the proposed directive on value added tax (VAT) in the digital age. Aimed at fighting VAT fraud, and modernising the rules, the ECON report seeks to further cut compliance costs for business, and ensure strict data protection.

Situation of artists and workers in the cultural and creative sectors

The cultural and creative sectors employ around 7.7 million people in the EU. However, they often lack financial and employment security. Parliament adopted a legislative-initiative report from its Committees on Culture and Education (CULT) and on Employment and Social Affairs (EMPL), calling on the Commission to propose legislation to improve employment conditions in the sector. Enforceable rules should align national approaches on aspects such as definitions of cultural and artistic activity and social security.

Opening of trilogue negotiations

Members approved several decisions to enter into interinstitutional negotiations: on standards for equality bodies in the field of equal treatment and equal opportunities, from the Committees on Women’s Rights and Gender Equality, and Employment and Social Affairs (FEMM/EMPL) after a vote; and, without votes, on the minimum requirement for own funds and eligible liabilities, from the ECON committee; on Union rules on the protection of personal data, and on combating child sexual abuse online, from the LIBE committee; and on ship-source pollution from the Committee on Transport and Tourism (TRAN).

Read this ‘at a glance’ note on ‘Plenary round-up – November II 2023‘ in the Think Tank pages of the European Parliament.

Written by Ralf Drachenberg.

‘This is Europe’ – an initiative proposed by the President of the European Parliament, Roberta Metsola – consists of a series of debates with EU leaders to discuss their visions for the future of the European Union. In the address of the Prime Minister of Bulgaria, Nikolai Denkov, to the European Parliament on 22 November 2023, historic symbolism – and its importance for today’s and tomorrow’s Europe – was a central theme. Mr Denkov also urged that Bulgaria’s integration into the EU be completed by joining Schengen and the euro area. Recalling that Bulgaria had fulfilled all the requirements for its accession to the Schengen area, he stressed that any further postponement would be unacceptable. In the context of Russia’s war against Ukraine, he pleaded not to give in to war fatigue, but to continue supporting Ukraine. To overcome polarisation in our societies, he also called upon the main political ideologies in the EU not to develop into sharp opposition, but to promote mutual understanding and cooperation. Finally, Mr Denkov emphasised the need to change the public’s views on the EU in many Member States and break with existing stereotypes, and he frequently depicted the EU as a source of ‘generous funds, benefits and a place for better paid work’.

Do not ask what the EU can do for your country, ask what your country can do for the EU.

Nikolai Denkov

Background

Roberta Metsola launched the ‘This is Europe’ initiative shortly after her election as President of the European Parliament in January 2022. Nikolai Denkov is the 11th EU leader to have addressed the Parliament since its Conference of Presidents endorsed the initiative on 28 April 2022.[1] These debates will continue during subsequent sessions. A similar Parliament initiative, ahead of the 2019 European elections, saw a number of EU leaders speak in Parliament’s plenary sessions about their views on the future of Europe. A 2019 EPRS analysis of those debates pinpointed similarities and differences between EU leaders’ views.

Figure 1 – Time devoted by Nikolai Denkov to various topics in his speech. Source: EPRS.

The ‘This is Europe’ initiative is particularly relevant in the context of the Conference on the Future of Europe (CoFoE), and the preparations for the Strategic Agenda 2024-2029.

The CoFoE produced 49 proposals on the EU’s future policies and functioning (see the EPRS overview), including more than 300 measures by which they might be achieved. Research by EPRS has shown that there is significant convergence between the results of the CoFoE and the priorities of the European Council, as expressed in the latter’s Strategic Agenda 2019‑2024 and its conclusions over the past three years. The European Council, on the initiative of its President, Charles Michel, has started the reflection process on the priorities for the next institutional cycle, which will lead to the Strategic Agenda 2024-2029. The first step in the reflection process was a discussion at the informal European Council meeting in Granada on 5-6 October 2023, on the basis of general questions formulated by Charles Michel. The next step involves a series of consecutive group meetings with a small number of EU leaders representing a mix of geographical regions in the EU, political party affiliations and diversity of opinion. Three meetings have taking place to date: on 13 November in Berlin, 14 November in Copenhagen and 16 November in Zagreb. Another meeting is expected to take place in Paris at the end of November.

Main focus of Nikolai Denkov’s speech

Prime Minister Denkov addressed a wide range of topics in his speech to Parliament (see Figure 1). In terms of words, he devoted most attention to i) the war in Ukraine, ii) European history, iii) geopolitical challenges, and iv) enlargement.

War in Ukraine

Mr Denkov warned of increasing signs of war fatigue in the EU, with voices even opposing the provision of support to the Ukrainian people. He stressed that, by helping Ukraine, we were helping Europe. If we did not do so, the situation in Ukraine could tomorrow be duplicated in Moldova, and the day after tomorrow even in one of the European Union Member States.

European history

Mr Denkov underlined that, today, for the first time in centuries, Europe was united in a union of independent and equal states, which is based on solidarity, freedom, democracy, equality before the law, the rule of law, respect for human dignity and the fundamental rights of all citizens.

Geopolitical challenges

Mr Denkov outlined the various ongoing conflicts that have an impact on the EU, such as those in Ukraine, the Middle East, the Far East and central and west Africa, warning that, for some of them, the situation could become further inflamed. He stressed that the EU could not turn a blind eye to these geopolitical challenges.

Enlargement

In the current international context, EU enlargement is becoming extremely important. Recalling that Bulgaria had always supported the accession of the Western Balkans to the EU, Mr Denkov underlined that enlargement nevertheless had to be based on real achievements by the candidates – and not on political calculations. He welcomed the Commission’s recommendation to open accession negotiations with Ukraine and Moldova, in the hope that Georgia would soon join them. For him, the internal reform process to strengthen the EU’s enlargement capacity and the accession negotiations must be parallel processes.

Specific proposals and positions

Prime Minister Denkov used the opportunity to present his views on how the European Union should advance in specific areas, summarised below.

Policy issuePriority action and proposals (quotes)Overcoming political polarisation‘The two main ideological and political trends in the EU, conservatism and liberalism, can and should develop not in sharp opposition, but in mutual understanding and cooperation.’Migration‘We need a new strategy that clearly distinguishes war refugees from economic immigrants. The EU must do its utmost to facilitate the reception of refugees and take all necessary measures to stop and discourage economic migrants.’Security and defence‘The EU must strengthen ties with its strategic NATO allies and strengthen its defence capabilities in cooperation between the countries within the alliance, including carefully considering the idea of creating a single European army.’Russian attacks on Bulgarian society‘Bulgaria is subject to targeted hybrid attacks. Putin’s secret services and propaganda take advantage of our country’s economic and raw material ties to Russia, as well as the historical and cultural ties between our peoples, to divide and confront our society against Russophiles and Euro-Atlanticists.’Table – Specific proposals made by Nikolai Denkov, by policy area

Read this ‘at a glance’ note on ‘‘This is Europe’ debate in the European Parliament: Speech by Nikolai Denkov, Prime Minister of Bulgaria, 22 November 2023‘ in the Think Tank pages of the European Parliament.

Written by Andrés García Higuera.

On 7 November 2023 the European Parliament’s Panel for the Future of Science and Technology (STOA) brought together experts on Artificial Intelligence and Large Language Models (LLMs), policy makers and representatives from civil society at a workshop entitled ‘Generative AI: opportunities, risks and challenges’.

STOA Vice‑Chair Ivars Ijabs (Renew; Latvia) opened the event by identifying the 2022 breakthrough in LLMs as a core technology and driver of change that heralded the release of Chat GPT. This technology brings immense opportunities in fields ranging from teaching to industry, but also poses challenges for data governance and has job market repercussions. In view of the economic impact on the EU of potentially missing-out on the technological revolution of recent decades, taking an active role in the AI revolution now appears crucial for the EU’s economic prosperity and competitiveness.

The event continued with a first panel concentrating on the technological aspects of AI. Professor Jan Hajič set the scene by commenting on different AI models, from single-task applications to machine learning‑based systems that focus on speech recognition, transformer architecture for choosing the next word in a sentence, and generative systems that produce a complete text. The panellists commented on current trends, the lifecycle of this technology and the scope of its application. Multilingualism, translation systems and digital language equality were also discussed in relation to digital training techniques and access to data and infrastructure. The assessment of risks and opportunities differ across categories of users, and public acceptability appears to be strongly linked to training. The code of conduct on disinformation, the Digital Services Act, risk assessment and mitigating measures were also mentioned, in relation to fake news and the enforcement of copyright rules within the framework of the AI act. Guardrails are necessary to moderate research and deployment so that innovation can move forward with the required guarantees.

Yordanka Ivanova (DG CNECT) represented the European Commission at the event. She commented on decisions taken while drafting the AI act, which is now under discussion. Future‑proof legislation requires clear definition of terms, systems, opportunities and risks, which is not always possible when dealing with emergent technologies like generative AI. The Commission’s coordinated plan on AI includes action to support AI excellence and development in the EU. Noting that the AI act has reached the final stage of trilogue negotiations, Yordanka Ivanova considers the three institutions (the Commission, Parliament and Council) could reconcile their different approaches and conclude negotiations by the end of the year. The proposed regulation specifies different levels of risk, and was drafted in a broad manner so that it will remain applicable to future technological developments. Since systems such as Chat GPT can be used for low and high-risk applications, the Council’s common position proposes to oblige providers to share the information they require to function, so that users are able to identify the level of risk. The Parliament’s draft focuses on the foundation models and the design and implementation phases, while searching for a common approach that would enable a global convergence with international players.

The second panel focused on the social and ethical effects of Generative AI. It was introduced by Ana García Robles, Secretary General of the Big Data Value Association, who highlighted multidisciplinarity and the need for ethical design, deployment and regulation of AI. The panel discussed the business aspect of AI, AI’s impact on European industrial development and the need to take advantage of the opportunities AI presents, including job creation, while addressing its challenges and risks. The panel called for AI governance and regulation as well as for investment in research and development. As generative AI is a technological breakthrough posing extraordinary regulatory challenges, legislators should protect people by requiring independent audits and enforcing regulations.

STOA Vice-Chair Ivars Ijabs closed the event by underlining the need for risk management while fostering development and innovation. He also pointed out that gaining public acceptance and trust in generative AI will require future‑proof regulation.

A web-stream recording of the event is available on our website.

Your opinion matters to us. To let us know what you think, get in touch via stoa@europarl.europa.eu and follow us on Twitter/X at @EP_ScienceTech.

Written by Pieter Baert (1st edition).

When businesses start operating across borders, they are faced with a new and unfamiliar corporate tax system in each EU Member State. As a result, businesses with cross-border activities have to spend time and resources on understanding and complying with complex local corporate tax rules. This represents a significant administrative burden, in particular for small companies.

To lower tax compliance costs, the European Commission tabled a proposal on 12 September 2023 to establish a head office tax system (HOT) for small businesses. Under HOT, micro-enterprises and small and medium-sized enterprises (SMEs) operating exclusively through permanent establishments would be able to continue to apply their national corporate tax rules – i.e. the rules they are already most familiar with – when they expand across borders. They would also be able to file a single tax return in the Member State of their head office, rather than separate tax returns in the different Member States. This would cut compliance costs and remove an important barrier to the cross-border expansion of small companies in the single market.

The proposal is subject to a special legislative procedure, requiring unanimous support in Council, following consultation of the European Parliament and the European Economic and Social Committee.

Versions

• November 2023: ‘HOT – A head office tax system for small companies‘ (1st edition)

HOT – Proposal for a Council directive establishing a head office tax system for micro, small and medium sized enterprisesCommittee responsible:Economic and Monetary Affairs (ECON)COM(2023)528
12.9.2023Rapporteur:Lídia Pereira (EPP, Portugal)2023/0320(CNS)Shadow rapporteurs:Aurore Lalucq (S&D, France)
Martin Hlaváček (Renew, Czechia)
Claude Gruffat (Greens/EFA, France)
Andżelika Anna Możdżanowska (ECR, Poland)Consultation procedure
(CNS) – Parliament adopts
a non-binding opinionNext steps expected: Publication of draft report

Written by Mario Damen.

Future relations between the EU and Ukraine will depend on much more than financial and military aid or complying with European legislation. They will involve developing a new security architecture for Europe, new relations with Russia and Belarus, the economic and social recovery of Ukraine, and a common vision – amongst both EU and Ukrainian citizens – of an enlarged European Union that people want to live in.

These topics were discussed at the online policy round table ‘EU‑Ukraine 2035, foresight beyond the war’ held on 16 November 2023. The round table was the closing event of a conversation between more than 50 experts, who from June 2022 to June 2023 discussed the future of the EU and Ukraine using foresight methodology and scenario building.

Presenting the project and its final report, Wolfgang Hiller, Director for Impact Assessment and Foresight at the European Parliamentary Research Service (EPRS), emphasised the importance of foresight in analysing the possible consequences of complex high-impact developments, such as the war in Ukraine.

Member of the European Parliament Michael Gahler (EPP, Germany), Rapporteur on Ukraine in the Committee on Foreign Affairs, highlighted that, in the first year following the Russian invasion of Ukraine on 24 February 2022, Parliament adopted no less than 24 resolutions related to Ukraine. These called for financial and military support for Ukraine, the opening of accession negotiations and support for Ukraine’s recovery and reconstruction.

Moderator Mario Damen of EPRS underscored that the scenarios represent possible futures that can help policy makers in taking the right decisions today.

In the lively panel discussion, four of the experts gave their views on the future EU‑Ukraine relationship. Ruth Deyermond from King’s College London considered escalation of the war beyond Ukraine rather unlikely in view of weakened Russian conventional forces and the possibility of retaliation. However, she made a plea, supported by Michael Gahler and other panellists, that EU countries and the United Kingdom increase their efforts to cooperate on defence matters. Jana Juzová from the EUROPEUM Institute for European Policy in Prague was of the opinion that it is less likely today that whole groups of countries might achieve EU accession than it was in 2004, when the Visegrad countries (Poland, Czechia, Slovakia and Hungary) and six other central and southern European states joined the EU at the same time. The variety in development and policy approaches between the current candidate countries (those in the Western Balkans, as well as Georgia, Moldova and Ukraine) is much greater than in 2004. Nicolai von Ondarza from Stiftung Wissenschaft und Politik in Berlin pointed to proposals made by a Franco‑German working group for EU reform in view of enlargement. He reasoned that an enlarged EU would inevitably require more flexible cooperation arrangements. Ievgen Kylymnyk from the United Nations Development Programme stated that decentralisation would be key to overcoming the many challenges Ukraine will face in its reconstruction and recovery, as highlighted in a report on scenarios for Ukraine up to 2040. Because the EU accession process can take a decade or more, Michael Gahler and the experts called to combine the high ambitions and expectations with honest and realistic communication in the candidate countries, to meet all the challenges ahead.

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Ievgen Kylymnyk Nicolai von Ondarza Jana Juzova Ruth Deyermond Mario Damen Michael Gahler EU-Ukraine 2035, Foresight beyond the war | EPRS policy roundtable

Written by Martina Prpic (1st edition).

On 12 July 2023, the Commission published its proposal for a revision of the Victims’ Rights Directive, the key EU legislation on the protection of the rights of victims of crime. The Commission estimates that 15 % of Europeans fall victim to a crime every year. Despite progress in recent years, victims still lack access to information, support and protection. Secondary victimisation during criminal proceedings is still common and victims’ access to compensation is not sufficiently supported. Vulnerable victims are especially lacking in sufficient specialised support. The Commission is proposing a set of amendments to strengthen the current rules and expand victims’ rights.

In Parliament, the file is being dealt with by the Committees on Civil Liberties, Justice and Home Affairs (LIBE) and on Women’s Rights and Gender Equality (FEMM) under the joint committee procedure.

Versions

• November 2023: ‘Revision of the Victims’ Rights Directive‘ (1st edition)

Proposal for a directive of the European Parliament and of the Council amending Directive 2012/29/EU establishing minimum standards on the rights, support and protection of victims of crime, and replacing Council Framework Decision 2001/220/JHACommittees responsible:Civil Liberties, Justice and Home Affairs (LIBE) and
Women’s Rights and Gender Equality (FEMM)COM(2023) 424
12.7.2023.Rapporteur:María Soraya Rodríguez Ramos (Renew, Spain) and Javier Zarzalejos (EPP, Spain)2023/0250(COD)Shadow rapporteurs:Maria da Graça Carvalho (EPP, Portugal)
Maria Noichl (S&D, Germany)
Giuliano Pisapia (S&D, Italy)
Lucia Ďuriš Nicholsonová (Renew, Slovakia)
Saskia Bricmont (Greens, Belgium)
Kira Marie Peter-Hansen (Greens, Denmark)
Beata Kempa (ECR, Poland)
Konstantinos Arvanitis (The Left, Greece)
Eugenia Rodríguez Palop (The Left, Spain)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Publication of draft report

Written by Clément Evroux (1st edition).

On 28 July 2023, the European Commission adopted a proposal to revise EU toy safety legislation with a new regulation and repealing Directive 2009/48/EC. The proposal pursues two main objectives: a) achieving a higher level of child protection, including from the most harmful substances; and b) reducing the number of non-compliant and unsafe toys on the EU market. In relation to the first objective, the proposal extends the definition of health to children’s psychological and mental health and to their wellbeing and cognitive development. It also extends the current ban on substances classified as carcinogenic, mutagenic and toxic for reproduction to include endocrine disruptors, as well as chemicals that are toxic to a specific organ or affect the immune, neurological or respiratory system. The proposal’s second objective provides for the creation of a digital product passport to facilitate traceability.

In the European Parliament, the file was referred to the Committee on Internal Market and Consumer Protection (IMCO). The working party on technical harmonisation in the Council of the European Union, has begun its examination of the proposal.

Versions

• November 2023: ‘Toy safety regulation‘ (1st edition)

Proposal for a regulation of the European Parliament and of the Council on the safety of toys and repealing Directive 2009/48/ECCommittee responsible:Internal Market and Consumer Protection
(IMCO)COM(2023) 462
28.7.2023Rapporteur:Marion Walsmann (EPP, Germany)2023/0290(COD)Shadow rapporteurs:Brando Benifei (S&D, Italy)
Vlad-Maruis Botoş (Renew, Romania)
Katrin Langensiepen (Greens/EFA, Germany)
Beata Mazurek (ECR, Poland)
Alessandra Basso (ID, Italy)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Adoption of the draft report

Written by Jaan Soone (1st edition).

In July 2023, the Commission tabled a package of proposals for the greening of freight transport. Among the three proposals is one on improving the use of rail infrastructure capacity. The proposed text includes changes to the rules on the planning and allocation of railway infrastructure capacity, currently covered by Directive 2012/34/EU and Regulation (EU) No 913/2010. The aim of the changes is to allow rail infrastructure capacity and traffic to be managed more efficiently, thereby improving the quality of services and optimising the use of the railway network, accommodating larger volumes of traffic and ensuring that the transport sector contributes to decarbonisation.

In Parliament, the file has been referred to the Committee on Transport and Tourism. The rapporteur, Tilly Metz (Greens/EFA, Luxembourg), has yet to publish her draft report.

Versions

• November 2023: ‘Improving use of rail infrastructure capacity‘ (1st edition)

Proposal for a regulation of the European Parliament and of the Council on the use of railway infrastructure capacity in the single European railway area, amending Directive 2012/34/EU and repealing Regulation (EU) No 913/2010Committee responsible:Transport and Tourism (TRAN)COM(2023) 443
11.7.2023Rapporteur:Tilly Metz (Greens/EFA, Luxembourg)2023/0271 (COD)Shadow rapporteurs:Marian-Jean Marinescu (EPP, Romania)
Bogusław Liberadzki (S&D, Poland)
Dominique Riquet (Renew Europe, France)
Dorien Rookmaker (ECR, The Netherlands)
Marco Campomenosi (ID, Italy)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Publication of draft report

Written by António Vale and Jurgita Lekaviciute.

Globally, it has been estimated that four billion people are facing severe water scarcity. While the situation is not yet critical in Europe, water stress is already a serious issue and climate change is expected to make it worse in the future. What is the extent of the problem, and what solutions are available to avoid running out of water?

The European Union (EU) has been affected by episodes of severe drought over the past decade, particularly in 2022. Measures of water stress show it affects 20 % of European territory and 30 % of the European population yearly on average. A closer look at its geographical distribution sees southern Europe as a hotspot, but also shows important pressure on river basins in western and central Europe.

The overall trend in the EU is positive, withdrawals of water having fallen by 15 % between 2000 and 2019. Three quarters of water extraction comes from surface waters, the remainder from groundwater. When it comes to drinking water, however, a full 65 % comes from underground sources. With slow natural processes of aquifer recharge and high sensitivity to pollution, the latter are a particularly vulnerable source. Some 29 % of total groundwater body area in the EU is of poor quantitative or chemical status. Satellite measurements also paint a general picture of depleting groundwater levels in some areas. Agriculture accounts for about 30 % of the water extracted, mostly concentrated in a few Member States. Cooling of thermal power plants accounts for a similar share: municipal water supply for about one quarter, other industry and services for the remainder. This picture is complicated by the fact that much of the water extracted is eventually returned to the environment, although often with added impurities or pollutants, and for some uses the difference between extraction and consumption can be very large. Finally, there are also non-productive losses, such as leaks in the drinking water distribution network that reach 40 % or higher in some EU Member States.

Climate change is set to worsen these trends, its impact showing a north-south divide. Models predict that temperatures will increase across the board but, while drought frequency is expected to increase, northern Europe is predicted to see higher rainfall, although with more extreme precipitation. One final important impact is changes to river flows, which will see a decrease in summer flows in most of Europe.

Potential impacts and developments

It is clear that urgent action is required, with solutions coupling an increase in availability of good quality water with a decrease in consumption. Geography will be a central factor in deploying solutions, in terms not only of the current situation and its expected evolution, but also of the level of the local water cycle.

With the most obvious sources already tapped, options to increase supply look to the sea and the atmosphere. Desalination is a relatively old idea that comes with significant drawbacks in energy use and the environmental impact of brine waste. New technological developments may help make it more appealing, but for the moment, it mostly remains a solution for when there is no alternative. Atmospheric water generation technology is another field traditionally held back by high-energy requirements. While recently seeing much progress, with some promising solutions using little or no energy, it is however unlikely to have significant quantitative impact soon. A few other outside the box ideas have also been proposed, from cloud seeding to iceberg harvesting.

Given the difficulty in increasing supply, addressing the issue will necessarily involve recycling and reusing water, as well as reducing consumption. Part of the solution may involve better reuse of wastewater, as is already the case in Singapore, for example. Water storage will grow in importance, as climate change brings higher seasonal variation and more frequent extreme events. Managed aquifer recharge may not only help with this, it could also help address unsustainable groundwater extraction. Preventing leaks in the distribution network and reducing evaporation in reservoirs could also minimise losses. Better use could be made of rainwater, at both urban and domestic levels. in general, cities could adapt more effectively by means of practices such as water sensitive urban design. At domestic level, in addition to water reuse systems, smart meters and other digital tools can help with water conservation.

As one of the major users of water, agriculture will play a large role: solutions may include adapting crop types to changing water availability, or developing new strains that are more resistant to dry conditions. More efficient irrigation mechanisms and better reuse of wastewater for irrigation may also help to conserve water. The case of the other major user, the electricity sector, is more complex: a context of severe water scarcity may bring a shift to closed cooling systems in thermal power plants; these require less water but lead to higher water consumption. The overall situation, however, is set to change as wind and solar power, which require little water for operation, become more prevalent. Elsewhere in industry, the solution may involve recycling water, an idea currently being explored by the chip manufacturing industry. Although it is difficult to determine water’s true value, market mechanisms may help conserve water via price signals. However, water is a basic necessity, and reflecting this in its cost is fraught with difficulty.

Nevertheless, a large part of the solution may lie in going back to nature. Grey or hard infrastructure has so far dominated water resource management, but the focus is now shifting to nature-based solutions (NBS). Such NBS for water management involve the use of ecosystem services to improve water quantity and quality and increase resilience to climate change. Ecosystems regulate water supply, moderate water quality and mitigate extreme climate events. For example, NBS can help maintain water supplies by increasing the infiltration and storage capacity of wetlands and soils and recharging aquifers. They can also mitigate droughts by releasing water from natural storage features and extend the life of reservoirs by reducing siltation. To regulate water quality, NBS can help treat polluted water, protect groundwater from contamination by removing sediments and pollutants, and improve wastewater quality. To mitigate extreme climate events, NBS can help increase water storage capacity in watersheds and urban areas, thereby reducing downstream flooding, slowing the flow of floodwaters, and reducing crop vulnerability to drought. Despite its growing use, direct investment in NBS still represents less than 1 % of total investment in water resource infrastructure and management worldwide.

Anticipatory policymaking

The Water Framework Directive (WFD) is the key European tool to tackle water stress and ensure sustainable water use, together with a series of other water laws. However, implementation is slow and integration of environmental objectives into sectoral policies is insufficient – as water use is transversal to many sectors, other legislation also has a relevant impact. Here, the EU common agricultural policy (CAP) plays a particularly important role. A recent European Court of Auditors report found inconsistent alignment of the CAP with water policy, with many exemptions granted for agricultural water use. It recommends better justifying such exemptions, linking CAP payments to sustainable water use and ensuring EU-funded projects help achieve WFD objectives. The Green Deal also has important ramifications: promoting wind and solar power leads to reduced water use in the energy sector; it may also be key in promoting the adoption of NBS. In addition, water policy would need to account for the geographical diversity of challenges, as well as the asymmetric impacts and increased seasonality brought by climate change.

Research and innovation will continue to play an important role in finding innovative solutions, and will help with the shift from a ‘silo’ approach to a collaborative one (an example is the launch of a new knowledge and innovation community on water). There are also initiatives from the European Parliament and the European Economic and Social Committee, calling for an ‘EU Blue Deal’ within the European Commission’s next mandate.

Finally, it is important to give water an appropriate economic value, and value it as an asset that generates functions and services for human wellbeing. Discussions on water economics have just begun, including through initiatives such as the Global Commission on the Economics of Water.

Read this ‘at a glance’ on ‘What if Europe ran out of water?‘ in the Think Tank pages of the European Parliament.

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Written by Sebastian Clapp and Clément Evroux.

Space is becoming an increasingly contested domain. The Russian war of aggression in Ukraine highlights the key role of space-based connectivity for the conduct of military operations and the continuity of public services. The Strategic Compass for Security and Defence underlines the increasingly contested nature of space, recognises space as a strategic domain and accentuates the need to boost the security and defence dimensions of the EU in space. EU Member States have therefore committed to adopt an EU space strategy for security and defence; this was put forward by the Commission on 10 March 2023.

Recognition by the EU and its Member States of the importance of space and defence has led to an increase in the development and use of space assets for defence and security objectives over the past decade. Space and defence capability development is advancing, with several European Defence Fund and permanent structured cooperation (PESCO) projects developing the capabilities that the EU will need in the space and defence sphere. Synergies are being sought between the civil, defence and space industries. The EU is also increasingly involved in global governance on space issues, working to enhance its partnerships on space security, for instance with the United States and with the North Atlantic Treaty Organization.

The European Parliament’s Committee on Foreign Affairs has adopted an own-initiative report on the Strategic Compass and EU space-based defence capabilities, in which it welcomes ‘the findings and high level of ambition in the recommendations proposed in the EU space strategy in the area of security and defence’. The Council has meanwhile adopted conclusions on the EU space strategy for security and defence, welcoming it and supporting its main points.

Read the complete briefing on ‘EU space strategy for security and defence‘ in the Think Tank pages of the European Parliament.

Written by Laurence Amand-Eeckhout.

World Diabetes Day – marked every year on 14 November – was proclaimed by the United Nations in 2007, to raise awareness of diabetes and related complications, and to promote prevention and care, including through education.

Background

Diabetes is a chronic disease that occurs when the pancreas is no longer able to produce insulin, or when the body cannot make good use of the insulin it produces. There are three main types of diabetes: type 1, type 2 and gestational. Type 1 results from a lack of insulin production and is diagnosed mainly in childhood and in teenagers. Its causes are still unknown. Daily insulin injections are required to keep blood glucose levels under control. Type 2, which accounts for 90 % of all diabetes cases, results from the body being unable to use the insulin it produces effectively. Type 2 is diagnosed mainly in adults, although an increase in cases has recently been observed among children. Type 2 diabetes often results from excess body weight and physical inactivity. A healthy lifestyle, regular physical activity and maintaining a normal body weight can help prevent type 2 diabetes. However, those who have already contracted type 2 diabetes require oral drugs and/or insulin to maintain safe blood glucose levels. Gestational diabetes consists of high blood glucose during pregnancy. Women who are affected and their children are at increased risk of developing type 2 diabetes later in life.

‘Know your risk, know your response‘ is the theme of the third year of the World Diabetes Days 2021-2023 campaign ‘Access to Diabetes Care’, underlining the importance of knowing the risk of type 2 diabetes to help delay or prevent the condition.

Facts and figures

According to the International Diabetes Federation (IDF – an umbrella organisation of over 240 national diabetes associations in 160 countries) approximately 537 million adults (aged 20 to 79) around the world were living with diabetes in 2021. This number is expected to rise to 783 million by 2045. In addition, 541 million adults are at increased risk of developing type 2 diabetes. In the EU specifically, it is estimated that over 33 million people suffer from diabetes (without counting the undiagnosed).

EU action on diabetes

EU Member States are responsible for their own healthcare policies. However, according to Article 168 of the Treaty on the Functioning of the European Union, EU action should complement national policies. The EU focuses on prevention, research and information, while also fostering cooperation between Member States. The European Commission addresses diabetes in its work on non-communicable diseases (NCDs). It is supporting Member States as they work towards reaching the United Nations (UN) and World Health Organization’s nine targets on NCDs by 2025, as well as UN Sustainable Development Goal 3, which aims to reduce premature mortality from NCDs by one third by 2030. The Healthier Together EU non-communicable diseases initiative (which covers 2022 to 2027) aims to support EU countries in reducing the burden of NCDs, including diabetes, while improving citizens’ health, as part of efforts to build a European health union. The EU4Health programme and other EU programmes support the implementation of the initiative in the Member States. In the field of prevention, the Commission’s action focuses mainly on the key risk factors for type 2 diabetes, encouraging the promotion of healthy eating and physical activity and the reduction of obesity and the harmful use of tobacco and alcohol.

On 23 November 2022, 100 years after the discovery of insulin, the European Parliament adopted a resolution on prevention, management and better care of diabetes in the EU.

Read this ‘at a glance’ note on ‘World Diabetes Day 2023‘ in the Think Tank pages of the European Parliament.

Written by Clare Ferguson and Katarzyna Sochacka.

During the first November plenary session, Members held a debate with the European Council and Commission on the conclusions of the European Council meeting of 26‑27 October 2023, and on the humanitarian crisis in Gaza and the need for a humanitarian pause. Further debates took place on Council and Commission statements on the outcome of the EU–United States Summit, EU enlargement policy and the state of the energy union.

Roberta Metsola, the Parliament’s President, made a statement on the urgent need for immediate measures against the rise of antisemitism. Finally, the session was preceded by an address by Cate Blanchett, UNHCR Goodwill Ambassador.

System of own resources of the European Union

Members debated and voted a Committee on Budgets (BUDG) report on the Commission’s proposed amendment to the 2021 Own Resources Decision (ORD). The Commission’s latest proposal presents an adjusted package for the next generation of own resources, with an increased call rate on emissions trading system (ETS) revenue and a temporary statistical own resource based on company profits. The BUDG report considers the amended proposal adequately reflects the Interinstitutional Agreement (IIA) roadmap and calls on the Council to adopt the amended ORD. The committee again emphasises the need to secure sufficient (and not merely temporary) own resources for the EU budget, and introduces further amendments. Following Parliament’s vote, the Council can adopt now its decision on the proposal.

Motor vehicle emissions and battery durability (Euro 7)

Members debated and voted on a new proposal to tighten the regulations on light- and heavy-duty motor vehicle emissions and battery durability (Euro 7). Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI) seeks to set stricter limits for heavy-duty vehicle exhaust emissions, but would grant additional time to reach the more stringent thresholds. The committee would retain most Euro 6/VI standards on testing conditions for cars and trucks, and supports the proposed creation of an environmental vehicle passport and on-board systems for monitoring emissions, consumption and battery health. The report as voted now constitutes Parliament’s position for negotiations with the Council.

Data Act

Members approved the political agreement reached following trilogue negotiations on fair access to and use of data (Data Act). The Council and Parliament agreed on a final text in June 2023, which the Committee on Industry, Research and Energy (ITRE) and the Member States’ Permanent Representatives have both endorsed. The agreed Data Act sets out users’ rights to access and share the data they generate through their use of connected devices, the possibility to share private sector data with public sector bodies and institutions in public emergencies, sets new requirements to allow users to switch cloud provider, and safeguards against unlawful international data transfers. The Data Act now needs Council adoption before it becomes law.

EU-Madagascar Sustainable Fisheries Partnership Agreement

Members followed a Committee on Fisheries (PECH) recommendation, giving consent to the conclusion of a new EU fisheries agreement and implementing protocol with Madagascar, as part of a set of EU tuna agreements. The new framework should provide access rights for the EU fleet to fish in Malagasy waters in return for an EU contribution of €1.80 million per year, €700 000 of which represents access rights. The rest should support Madagascar’s fisheries policy and conservation efforts. A four-year agreement and implementing protocol, initialled after eight rounds of negotiations between the European Commission and the government of Madagascar, have applied provisionally since June 2023.

Opening of trilogue negotiations

Decisions to enter into interinstitutional negotiations on a number of files were announced, and in all cases endorsed without a vote being required, so the committees may now open negotiations. The files concerned are: a report on managed security services from the ITRE committee; a report on import, export and transit measures for firearms, their essential components and ammunition: implementation of Article 10 of the UN Firearms Protocol from the Committee on International Trade (INTA); a report regarding management, conservation and control measures applicable in the Convention area of the International Commission for the Conservation of Atlantic Tunas (ICCAT) and establishing a multiannual management plan for bluefin tuna in the eastern Atlantic and the Mediterranean (PECH); a report regarding making public capital markets in the Union more attractive for companies and facilitating access to capital for small and medium-sized enterprises; and reports (directive and regulation) on multiple-vote share structures in companies that seek the admission to trading of their shares on an SME growth market from the Committee on Economic and Monetary Affairs (ECON); a report on Community designs and a report on legal protection of designs from the Committee on Legal Affairs (JURI); a report on prohibiting products made with forced labour on the Union market from the INTA/Internal Market and Consumer Protection (IMCO) committees; and a report on digital labelling of EU fertilising products from the IMCO committee.

Read this ‘at a glance’ note on ‘Plenary round-up – November I 2023‘ in the Think Tank pages of the European Parliament.

Written by Tambiama Madiega (1st edition).

On 27 April 2023, the European Commission published its proposal for a regulation on standard essential patents (SEPs). SEPs are patents that protect technology that has been declared essential in a technical standard or specification developed by a standard development organisation (SDO).

The proposed SEPs regulation aims to facilitate SEPs licensing by increasing transparency about SEPs, reducing information asymmetries between SEPs holders and SEPs implementers and facilitating the agreement on fair, reasonable and non-discriminatory (FRAND) licences. The Commission is proposing to set up a competence centre at the EU Intellectual Property Office (EUIPO), tasked with administering a SEPs registry and database. SEPs holders would have to register their SEPs with the EUIPO, which would carry out essentiality checks and set FRAND criteria.

While stakeholders and academics are generally very supportive of the goal of enhancing transparency, major SEP holders and other interested parties oppose the proposal. In her draft report published in October 2023, Marion Walsmann (EPP, Germany) – rapporteur for the file appointed by the European Parliament’s Committee on Legal Affairs – proposes a range of amendments to provide more legal clarity and bridge the gap between the interests of SEPs holders and implementers.

Versions

• November 2023: Standard essential patents (1st edition)

Proposal for a regulation of the European Parliament and of the Council on standard essential patents and amending Regulation (EU)2017/1001Committee responsible:Committee on Legal Affairs (JURI)COM(2023)232
27.4.2023Rapporteur:Marion Walsmann (EPP, Germany)2023/0133(COD)Shadow rapporteurs:Tiemo Wölken (SD, Germany)
Adrián Vázquez Lázara (Renew, Spain)
Emmanuel Maurel (GUE/NGL, France)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Committee vote

Written by Gregor Erbach.

The EU emissions trading system (ETS) has been successful in reducing greenhouse gas (GHG) emissions from industry, electricity generation and aviation. The revision of the EU ETS under the ‘fit for 55’ package raises its ambition, extends emissions trading to maritime transport, buildings and road transport, and gradually phases out free emissions allowances, while phasing in a carbon price for certain imports.

Background

The rules for phase 4 of the EU ETS have been revised to raise the ambition in line with the binding EU 2030 target of reducing net GHG emissions by 55 % below 1990 levels, as set out in the EU Climate Law. Discussions during the legislative process focused on the timing of establishing a new ETS covering fuels for road transport and buildings (ETS II), in a context of inflation and high energy prices. The ETS II will start in 2027, a year later than proposed by the European Commission. If energy prices are exceptionally high, its start will be postponed until 2028. A price stabilisation mechanism kicks in if ETS II prices exceed €45.

Objectives and targets

The revised EU ETS Directive, which entered into force on 5 June 2023, raises overall emissions reductions by 2030 in the sectors covered by the EU ETS to 62 % below 2005 levels. GHG emissions from maritime transport will be included in the ETS from 2024, with a 2-year phase-in period. The Commission will assess a possible extension to municipal waste incineration from 2028. With the extension of the ETS to maritime transport and fuels for road transport and buildings, most of the EU’s GHG emissions will be subject to emissions trading. Part of the ETS revenues go to an enlarged Innovation Fund that supports the demonstration and roll-out of innovative low-carbon technologies, and an enlarged Modernisation Fund that helps to modernise energy systems and improve energy efficiency in 10 lower-income Member States. Member States must now spend all of their ETS revenues on climate and energy-related purposes.

Visit the European Parliament homepage on EU measures against climate change

While the ETS I concerns commercial operations (power plants, industrial installations, airlines, shipping companies) that must surrender allowances for their emissions, the ETS II impacts households and citizens directly through the fuel price. A new Social Climate Fund will help alleviate the social impacts of the ETS II. The actual trading and surrender of ETS II allowances will be the responsibility of fuel distributors, building on the existing system for excise duties. To balance the supply and demand of ETS allowances and limit price fluctuations, both ETS I and ETS II operate a market stability reserve.

Free allowances for trade- and energy-intensive industries will be gradually phased out, to ensure the decarbonisation of these industries. To continue protecting these European industries from unfair international competition, a new carbon border adjustment mechanism will put a carbon price on the imports of certain products, including steel and aluminium. The phase-out of free allowances is synchronised with the phase-in of the carbon border adjustment mechanism and will be completed in 2034. Free allowances for the aviation sector will be phased out, reaching full auctioning in 2026.

Implementation on the ground

The EU ETS is a market-driven instrument that aims to reduce GHG emissions by putting a limit (cap) on the total allowable amount of emissions, and using a carbon market to establish the price of emissions through auctioning and trading of emissions allowances. This ‘cap and trade’ system promotes investments to reduce carbon emissions if these investments are cheaper than paying the price of emissions allowances. In this way, it encourages decarbonisation in the most cost-effective manner. The carbon price in the EU ETS has encouraged both the transition from coal towards less carbon-intensive energy sources and investments in industrial energy efficiency and low-carbon processes.

However, in addition to market mechanisms delivering climate benefits, there is a role for Member States, regional and local authorities in helping industry to deal with ever-rising carbon prices. This concerns regions that have been heavily dependent on coal and energy-intensive industries and/or want to benefit from the transition towards low-carbon energy sources such as green hydrogen. Municipal authorities can play a leading role in helping citizens cope with the carbon price for heating fuels under the ETS II by supporting energy-efficient renovation of buildings, solar heating and electricity generation, and low‑carbon heating solutions such as heat pumps and district heating. The following examples illustrate local and regional good practices to help avoid economic losses from a carbon price expected to rise above €100 per tonne of CO2 equivalent by 2030, driven by an amount of emissions allowances that is reduced year after year.

Just transition in Eastern Wielkopolska, Poland
The Eastern Wielkopolska region has long been dependent on coal mining and coal-fired electricity generation, and this has also been the largest source of employment in the region. The region’s Just Transition Territorial Plan envisages phasing out coal mining by 2030 and becoming carbon neutral by 2040. The Konin sub-region will receive €415 million from the EU Just Transition Fund to reskill coal workers and transition towards renewable energy, including green hydrogen. As a frontrunner, Eastern Wielkopolska is the only Polish region in the Powering Past Coal Alliance, a network of organisations and public authorities committed to accelerating the transition from coal to clean energy.
North Holland hydrogen valley
The North Holland region has been awarded the European Hydrogen Valley status and been recognised for best practices regarding financing and public-private partnerships. With several hydrogen production initiatives, a world-class hydrogen research facility, three seaports, a connection to the national hydrogen network, and an ambition to use hydrogen in steel production, manufacturing, synthetic fuels, mobility and agriculture, the region is well positioned for an accelerated transition to green hydrogen. As a hydrogen valley, the region stands to benefit from the transition towards green hydrogen, which will become increasingly competitive in the face of ever-higher EU ETS prices.
Geothermal district heating in Aarhus, Denmark
The city of Aarhus decided to develop the largest geothermal district-heating system in the EU. It is expected to provide heat for some 36 000 households by 2029 and reduce annual CO2 emissions by up to 165 000 tonnes, thereby lowering the need for ETS allowances. Drilling will start in autumn 2023, and the first of seven geothermal plants is expected to start operation in 2025.
South Tyrol, an Alpine model region for clean mobility
The 8-year LIFEalps project aims to transform the Italian South Tyrol region into an Alpine model region for zero‑emission mobility, helping to avoid financial burdens from the ETS II for road transport fuels, and contributing to the South Tyrol Climate Plan. The project focuses on infrastructure for electric and hydrogen vehicles, pilot fleets and zero-emission transport services. It involves a municipal utility, regional highway and transport operators, energy suppliers and a research institute.

Read this ‘at a glance’ note on ‘Revised EU emissions trading system‘ in the Think Tank pages of the European Parliament.

Written by Ralf Drachenberg and Rebecca Torpey.

At the European Council meeting of 26-27 October 2023, EU leaders sought to show unity on challenging issues on which consensual positions have proven difficult to find in the past, in particular on the Middle East. On that topic, the European Council reiterated its condemnation of Hamas for its brutal and indiscriminate terrorist attacks, emphasising Israel’s right to defend itself in line with international law and international humanitarian law. At the same time, it called for ‘pauses for humanitarian needs’ and for an international conference to revive the peace process on the basis of a two-state solution. On Ukraine, EU leaders adopted deliberately long conclusions, reiterating their condemnation of Russia’s war of aggression and their continued unwavering ‘financial, economic, humanitarian, military and diplomatic support to Ukraine and its people for as long as it takes’. The discussion on the multiannual financial framework highlighted increasing unwillingness among Member States to agree to the current Commission proposal for an increase in the EU’s long term budget. In the absence of detailed conclusions on migration, European Council President Charles Michel pointed to the growing consensus among EU leaders on stronger cooperation with third countries. The European Council was followed by a Euro Summit, to discuss the EU’s economic and financial situation, banking union, coordination of fiscal policies and the digital euro project.

1.     General aspects

The EU leaders’ meeting began with the customary address by the President of the European Parliament, Roberta Metsola. This meeting was the last European Council for Xavier Bettel as Prime Minister of Luxembourg, a position he has held for 10 years.

2.     European Council meeting Ukraine

Amid growing concern that the Middle East crisis could distract the international community’s attention from Ukraine, a number of EU leaders urged their colleagues not to forget the country. Lengthy conclusions were adopted, reiterating the EU’s unwavering support. Ukraine’s President Volodymyr Zelenskyy addressed the European Council virtually, emphasising the current efforts being made by Ukraine to meet the criteria for opening accession negotiations. EU leaders also reiterated their support for Moldova, and restated Ukraine, Moldova and Georgia’s European paths.

With a new aid package for Ukraine currently stalled in the US Congress, funding for Ukraine and its war efforts was one of the main topics of discussion. EU leaders for instance considered the proposal for a €50 billion top up to the multiannual financial framework (MFF), for Ukraine. However, the lack of unity was apparent: while Lithuania’s President Gitanas Nausėda argued €50 billion was not enough, Hungary’s Prime Minister Viktor Orbán and Slovakia’s newly elected Prime Minister Robert Fico expressed doubts about the proposal. Fico, who has pledged to stop any Slovakian military aid to Ukraine, insisted that Ukraine was ‘one of the most corrupt countries in the world’. A new €20 billion segment of the European Peace Facility (EPF), the off-budget mechanism used by Member States to provide military supplies for Ukraine, is also due to be discussed at the December meeting. However, the eighth package of assistance measures, a €500 million package under the EPF, mentioned ahead of the meeting as one possible outcome, could not be adopted owing to Hungary’s veto. Orbán stressed, however, that he was ready to ‘make a deal’ if a Ukrainian delegation came to Budapest.

Once again, Orbán’s position on the war in Ukraine diverged from that of most EU leaders; this, in a context of widespread criticism following his handshake with Russian President Vladimir Putin during his recent trip to China. With Fico’s return to the European Council, a second leader now openly opposes military support for Ukraine and the EU’s overall approach on the war. While unity in condemning Russia’s invasion of Ukraine is still largely shared by EU leaders, the adoption of a new package of sanctions or other initiatives to support Ukraine may prove difficult.

As regards the use of frozen Russian assets, EU leaders made some progress, and asked the Commission to come forward with proposals. With €211 billion frozen on EU soil, it is suggested that windfall profits generated by these assets should be redistributed to Ukraine. The Commission is expected to present the first step of the mechanism in December 2023.

Migration

As flagged up in the EPRS outlook, the only conclusion on migration stated that EU leaders had held a strategic debate. Dutch Prime Minister Mark Rutte stated that the European Council had been unable to adopt written conclusions, requiring consensus, as Poland and Hungary were in opposition. As indicated by Charles Michel, however, consensus is growing among EU leaders towards strengthened cooperation with third countries, including through comprehensive agreements. European Commission President Ursula von der Leyen meanwhile reported that there had been strong support from EU leaders for her letter and a twin-track approach: i) the legislative track (i.e. finalising the migration and asylum pact), and ii) the operational track (i.e. acting immediately along the various migratory routes). She said that the Commission would propose legislation to combat smuggling and trafficking by the end of November.

Main message of the President of the European Parliament: Roberta Metsola stressed the importance of making returns more effective, and reminded EU leaders of the need to progress on all components of the migration pact, to ensure it is finalised by the end of the legislative term.

Economy

EU leaders highlighted five crucial areas where action was required to strengthen the EU economic base: i) ensuring EU competitiveness on digital and clean technologies, ii) guaranteeing the supply of affordable clean energy, iii) diversifying supply chains and reducing dependencies, iv) moving to a more circular economy, and iv) reducing the regulatory burden. The need to attract investment was also prominently reiterated.

With the legislative term ending soon, EU leaders are very keen to see three critical files completed to improve EU economic resilience: i) the critical raw materials act, ii) the net-zero industry act, and iii) the reform of electricity market design. Furthermore, as supply chain problems and raw materials shortages have caused medicine scarcity in the EU, EU leaders want to ensure that this problem is taken care of, and asked the Commission to act swiftly on the basis of its recent communication.

As EU-US trade issues were not resolved at the recent EU-US summit, leaders invited the Commission to ‘work intensively on mitigating the discriminatory elements of the US inflation reduction act (IRA)’ and to make sure the EU is granted status equivalent to a free trade association partner. The IRA was also a central topic – alongside labour shortages, and industrial and energy policies – discussed at the tripartite social summit, attended by the presidents of the EU institutions ahead of the summit.

Multiannual financial framework

The rather limited conclusions on the MFF, only inviting the Council ‘to take work forward, with a view to reaching an overall agreement by the end of the year’, do not capture the intense discussions that took place at the October European Council meeting.

Von der Leyen reported that the discussion on the MFF revision did not concern figures but touched on general political views. She added that the discussion had shown broad agreement on the main MFF priorities: i) Ukraine; ii) migration; iii) natural disasters and humanitarian aid; and iv) EU competitiveness; as well as on a couple of additional areas, e.g. defence. The question however was where the additional resources should come from: additional Member State contributions or alternatively redeployment. Additional own resources will be crucial for the medium to long term, but can play no role in the short term as the necessary legislation would need to be passed.  

As indicated in a non-paper issued by the Spanish Presidency, it seems that the majority of EU leaders are not willing to contribute more to increase the EU budget. Rutte argued that he and many other leaders would provide ‘fresh money’ only for Ukraine, while additional funding should come from reprioritising – and this latter share should primarily be earmarked for migration. Likewise, German Chancellor Olaf Scholz also favoured the financing of current priorities through reprioritising and reallocation within the current budget. As reported by the French President, Emmanuel Macron, EU leaders asked the Commission to present an updated, ‘more realistic’, proposal for the MFF review, with a better mix of redeployment and additional money. Representing the Spanish Presidency of the Council of the EU, Spanish Prime Minister Pedro Sanchez stressed that the MFF revision and the EU economic governance review was seen as a package.

Finding a political agreement is expected to be difficult. While the aim is to finalise everything before the end of the year, some suggested splitting the revision into two parts (namely an agreement on the Ukraine facility by the end of the year, and postponement of other topics until 2024). Von der Leyen strongly rejected such a split, arguing it was opposed by the majority of EU leaders.

Main message of the President of the European Parliament: Metsola stressed that ‘it is the time to put the money where our mouth is’ and for the EU to have ‘a meaningful 2024 budget – one that is fit for purpose – [with] resources to back it up’. Progress on new own resources is also crucial.

External relations Middle East

EU leaders reaffirmed the main points of their 15 October statement: i) condemnation of Hamas’s terrorist attacks; ii) Israel’s right to defend itself in line with international law; iii) release of hostages; iv) protection of civilian lives; and v) the urgent need to supply humanitarian aid to civilians. In addition, following a suggestion by Sanchez, they called for an international conference to be convened within 6 months, to revive the Middle East peace process on the basis of a two-state solution.

While EU leaders had already called for humanitarian aid to be provided for civilians in Gaza, a central point in the discussion were the conditions and modalities of the delivery, i.e. whether or not EU leaders should call for [a] humanitarian pause[s] – with a focus on the use of the singular or the plural. Taoiseach Leo Varadkar noted that a humanitarian pause could allow European citizens stuck in Gaza to leave the country. Some leaders considered that a pause (singular) in the war could be seen as a limitation to Israel’s right to defend itself. In the end, EU leaders agreed to call for ‘rapid, safe and unhindered humanitarian access and aid to reach those in need through all necessary measures including humanitarian corridors and pauses for humanitarian needs’.

Considering criticism made of the EU’s initial response to the Middle East crisis, Michel underlined that unity had been achieved at EU level with the joint European Council statement of 15 October. He emphasised this unity in both his arrival doorstep comment and his press conference statements. It was only once this united position had been expressed that a number of EU leaders, including the German Chancellor, the French President and the Italian Prime Minister, went to Israel to show solidarity in the aftermath of the Hamas attack of 7 October.

Main message of the President of the European Parliament: Metsola stressed that a strong stance on terrorism and every ‘effort to alleviate the humanitarian crisis in Gaza’ were not mutually exclusive.

South Caucasus

Little progress was made on peace talks between Armenia and Azerbaijan. EU leaders mandated the High Representative and the Commission to work on initiatives to strengthen EU-Armenia relations.

Sahel

As anticipated, the European Council expressed concern about the deterioration of the security and humanitarian situation in the Sahel and called for the release of President Bazoum and his family. EU leaders expressed support for ECOWAS and called for the Commission to present options to adapt EU action and relevant instruments for the Sahel, building upon the recent framework of restrictive measures adopted by the Council. The framework aims to support the measures taken by ECOWAS.

Serbia and Kosovo

On Kosovo and Serbia, EU leaders called for de-escalation, normalisation of relations and the implementation of existing agreements. Despite a new EU proposal and parallel meetings, the parties failed to reach an agreement to the regret of Michel and High Representative Josep Borrell.

Other items Fighting terrorism

Michel reported that the European Council had discussed EU internal security, condemned the recent terrorist attacks in France and Belgium and called on EU institutions and Member States to mobilise all relevant instruments to enhance internal security.

Preparations for the 2023 Climate Change Conference (COP28)

The European Council called for support for the Global Renewables and Energy Efficiency Pledge, which will be launched at COP28, seeking to drive the energy transition globally. EU leaders appealed for increased ambition, despite concerns that the EU would not reach its own 2030 targets.

3.     Euro Summit meeting

This year’s second Euro Summit meeting was held in inclusive format on 27 October 2023. Discussions focused on the EU’s economic and financial situation, banking union, coordination of fiscal policies and the digital euro project. Inflation is still higher than the European Central Bank’s 2 % target, despite a reduction to 4.3 % in September. The Bank has paused the interest rate hikes for now, but EU leaders are still concerned and want to continue the disinflation process.

Read this briefing on ‘Outcome of the meetings of EU leaders, 26-27 October 2023‘ in the Think Tank pages of the European Parliament.

Written by Clare Ferguson with Sara Van Tooren.

Members of the European Parliament sit in plenary in Brussels on 8 and 9 November 2023. Their agenda includes hearing European Council and Commission statements on the conclusions of the European Council meeting of 26‑27 October 2023 and of the EU‑US Summit on 20 October, as well as on the European economic security strategy. A Commission statement is expected on the state of the energy union. Actor and Goodwill Ambassador of the United Nations High Commissioner for Refugees (UNHCR), Cate Blanchett, is due to give a formal address on Wednesday, on the importance of helping refugees and displaced people.

The Parliament has long called for a boost to the EU budget – so that it can respond to growing demands and tackle new crises – but without increasing national contributions based on gross national income. Members are set to discuss a Committee on Budgets (BUDG) report on the Commission’s proposed amendment to the 2021 Own Resources Decision (ORD) on Wednesday afternoon. The amendment presents an adjusted package for the next generation of own resources, with an increased call rate on emissions trading system (ETS) revenue and a temporary statistical own resource based on company profits. The BUDG report considers the amended proposal adequately reflects the Interinstitutional Agreement (IIA) roadmap and calls on the Council to adopt the amended ORD. The committee again emphasises the need to secure sufficient (and not merely temporary) own resources for the EU budget, and introduces further amendments. The Council can adopt its decision on the proposal once Parliament has voted.

Air pollution is the single largest environmental health risk in the EU, causing chronic disease and premature mortality. Parliament is expected to debate a new proposal to tighten the regulation on light- and heavy-duty motor vehicle emissions and battery durability (Euro 7) on Wednesday afternoon. Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI) would like to set stricter limits for heavy-duty vehicle exhaust emissions, but would grant additional time to reach the more stringent thresholds. The committee would retain most Euro 6/VI standards on testing conditions for cars and trucks, and supports the proposed creation of an environmental vehicle passport and on-board systems for monitoring emissions, consumption and battery health. The report as voted would form Parliament’s position for negotiations with the Council.

Parliament is set to decide on the political agreement reached following trilogue negotiations on fair access to and use of data (Data Act) on Thursday. Data-driven innovation could benefit citizens through, for instance, personalised medicine and new transport possibilities, but most industrial data remain unused or are concentrated in the hands of a small number of large companies. To resolve this, EU policymakers have been exploring how to make data sharing possible by giving users rights to access and share generated data with third parties, such as businesses, if they choose. The Council and Parliament agreed on a final text in June 2023, which the Committee on Industry, Research and Energy (ITRE) and the Permanent Representatives have both endorsed. The agreed Data Act sets out users’ rights to access and share the data they generate through their use of connected devices, the possibility to share private sector data with public sector bodies and institutions in public emergencies, sets new requirements to allow users to switch cloud provider, and safeguards against unlawful international data transfers.

Members are also due to vote on the Committee on Fisheries recommendation that Parliament consent to the conclusion of a new EU fisheries agreement and implementing protocol with Madagascar, as part of a set of EU tuna agreements. The new framework should provide access rights for the EU fleet to fish in Malagasy waters in return for an EU contribution of €1.80 million per year, €700 000 of which represents access rights. The rest should support Madagascar’s fisheries policy and conservation efforts. A four-year agreement and implementing protocol, initialled after eight rounds of negotiations between the European Commission and the government of Madagascar, have applied provisionally since June 2023.

FURTHER READING

• Agenda for the European Parliament plenary session of 8 and 9 November 2023
• Outcome of the meetings of EU leaders, 26-27 October 2023
• Data act: Adoption in plenary
• System of own resources of the European Union: Amended legislative proposal
• Euro 7 motor vehicle emission standards
• EU fisheries agreement with Madagascar

Written by Monika Kiss (1st edition).

On 1 June 2023, the European Commission published a proposal seeking to update the Directive on the investigation of accidents in the maritime transport sector, in order to take into account changes in the international maritime regulatory environment and technological developments in the maritime sector in recent years. The proposal also seeks to achieve an improved concentration of resources and to address shortages in expertise.

Within the European Parliament, the Committee on Transport and Tourism (TRAN) is handling the file, with Caroline Nagtegaal (Renew, NL) as rapporteur. The rapporteur published her draft report on 18 September 2023.

Versions

• October 2023: Revision of the Directive on the investigation of accidents in the maritime transport sector (1st edition)

Proposal for a directive of the European Parliament and the Council amending Directive 2009/18/EC establishing the fundamental principles governing the investigation of accidents in the maritime transport sectorCommittee responsible:Transport and Tourism (TRAN)COM(2023)270
1.6.2023Rapporteur:Caroline Nagtegaal (Renew, Netherlands)2023/0164(COD)Shadow rapporteurs:Magdalena Adamowicz (EPP, Poland)
Vera Tax (S&D, Netherlands)
Karima Delli (Greens/EFA, France)
Carlo Fidanza (ECR, Italy)
Clare Daly (GUE/NGL, Ireland)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Vote in committee

Written by Laurence Amand-Eeckhout (1st edition).

As part of its fight against harmful substances, on 13 February 2023 the Commission tabled a proposal for a directive aimed at protecting workers’ health by lowering occupational exposure to lead and diisocyanates.

The proposed directive would set, for the first time, occupational limit values for diisocyanates, while revising the limit values for lead for the first time in more than 40 years. It would also include a review mechanism to guarantee regular revisions from now on to make sure that those limit values will be regularly updated, taking into account the latest scientific data.

In Parliament, the Committee on Employment and Social Affairs (EMPL), which is responsible for the file, adopted its report on 7 September 2023. The mandate to enter into interinstitutional negotiations was endorsed by the plenary the following week, and negotiations are ongoing.

Versions

• October 2023: Protection of workers: Limit values for lead and diisocyanates (1st edition)

Proposal for a directive of the European Parliament and of the Council amending Council Directive 98/24/EC and Directive 2004/37/EC of the European Parliament and of the Council as regards the limit values for lead and its inorganic compounds and diisocyanatesCommittee responsible:Employment and Social Affairs (EMPL)COM(2023) 71
13.2.2023Rapporteur:Nikolaj Villumsen (The Left, Denmark)2023/0033(COD)Shadow rapporteurs:Cindy Franssen (EPP, Belgium)
Ilan De Basso (S&D, Sweden)
Véronique Trillet-Lenoir † (Renew, France)
Sara Matthieu (Greens/EFA, Belgium)
Elżbieta Rafalska (ECR, Poland)Ordinary legislative
procedure (COD)
(Parliament and Council
on equal footing –
formerly ‘co-decision’)Next steps expected: Trilogue

Written by David de Groot (1st edition).

The European Parliament is being consulted on a Commission proposal for a regulation on jurisdiction, applicable law, recognition of decisions and acceptance of authentic instruments in matters of parenthood. The regulation would harmonise the rules of jurisdiction and applicable law on parenthood adopted by the individual Member States and facilitate the recognition of parenthood.

Within Parliament, the lead committee for the file is Committee on Legal Affairs (JURI). The Committees on Civil Liberties, Justice and Home Affairs (LIBE) and on Women’s Rights and Gender Equality (FEMM) issued their opinions on 9 October and 19 September 2023 respectively. In the Council, the file is being handled by the Working Party on Civil Law Matters (JUSTCIV).

Versions

• October 2023: Proposal on the jurisdiction, applicable law, recognition of decisions and acceptance of authentic instruments in matters of parenthood (1st edition)

Proposal for a Regulation on jurisdiction, applicable law, recognition of decisions and acceptance of authentic instruments in matters of parenthood and on the creation of a European Certificate of ParenthoodCommittees responsible:Legal Affairs (JURI), Civil Liberties, Justice and Home Affairs (LIBE),
Women’s Rights and Gender Equality (FEMM)COM/2022/695
7.12.2022
Rapporteur:Maria-Manuel Leitão-Marques (S&D, Portugal)2022/0402(CNS)Shadow rapporteurs:Antonius Manders (EPP, Netherlands),
Pierre Karleskind (Renew, France),
Sergey Lagodinsky (Greens, Germany),
Jorge Buxadé Villalba (ECR, Spain),
Alessandra Basso (ID, Italy),
Manon Aubry (GUE/NGL, France)Consultation procedure
(CNS) (Unanimity in
Council and Parliament’s opinion non-binding)Next steps expected: Committee vote

Written by Rafał Mańko (1st edition).

On 30 November 2022, the President of the Court of Justice of the EU (CJEU), Koen Lenaerts, submitted to Parliament and Council a proposal on behalf of the CJEU to amend Protocol No 3 on the Statute of the Court of Justice of the EU (CJEU). The legal basis for the proposal is the second paragraph of Article 281 of the Treaty on the Functioning of the European Union, according to which the Parliament and the Council may, on the CJEU’s or the Commission’s initiative and following the ordinary legislative procedure, amend the CJEU Statute.

The proposal has two main objectives. First, it seeks to transfer jurisdiction on preliminary rulings from the Court of Justice (ECJ) to the General Court (GC) in five specific areas: the common VAT system; excise duties; the Customs Code and the tariff classification of goods under the Combined Nomenclature; passengers’ rights to compensation and assistance; and the greenhouse gas emissions allowance trading scheme. Second, it would extend the requirement for leave (permission) to appeal from the GC to the ECJ, enabling the ECJ to ‘filter’ incoming cases.

In the European Parliament, the Committee on Legal Affairs (JURI) is responsible for the file. The rapporteur’s draft report was adopted by JURI on 19 September and the committee’s decision to enter into interinstitutional negotiations was announced in plenary on 2 October. The ‘quadrilogue’ negotiations on the file (Parliament, Council, CJEU and Commission) began on 4 October 2023.

Versions

• October 2023: Amending the Statute of the Court of Justice of the EU (1st edition)

Request submitted by the CJEU pursuant to the second paragraph of Article 281 of the TFEU, with a view to amending Protocol No 3 on the Statute of the Court of Justice of the European UnionCommittees responsible:Legal Affairs (JURI)COM(2023)0135
10.3.2023Rapporteur:Ilana Cicurel (Renew, Romania)2022/0906(COD)Shadow rapporteurs:Angelika Niebler (EPP, Germany)
René Repasi (S&D, Germany)
Patrick Breyer (Greens/EFA, Germany)
Angel Dzhambazki (ECR, Bulgaria)
Gilles Lebreton, (ID, France)Ordinary legislative
procedure (COD) on
proposal from ECJ
(Article 281 TFEU)Next steps expected: Conclusion of interinstitutional negotiations