European Union

After weeks of waiting, Gunther Oettinger has replied to a letter from the Polish justice minister that compared the German commissioner’s criticism of Poland’s media reforms with. . . the Nazi’s crimes of the second world war.

The letter, which we’ve posted here, is surprisingly polite, with a perky hand-written “Dear Colleague!” to start. This marked a shift in tone from the original missive from Zbigniew Ziobro, who tartly complained last week:

You [Oettinger] demanded that Poland be placed under ‘supervision’. Such words, spoken by a German politician, have the worst possible connotations for Poles. For me, too. I am the grandson of a Polish officer who, during World War II, fought in [Poland’s] underground Home Army against ‘German supervision’.

But Brussels is determined not to get into a war of words with Warsaw. This tactic was tried and failed with Viktor Orban, the populist leader of Hungary, who was happy to spar in public with the commission over his reforms while becoming increasingly popular at home.

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How better to start a year full of transport policy initiatives than with some Dutch pragmatism? Transport is a practical sector itself as it inevitably links to one of the most basic needs of the economy: moving goods and people. 2016 looks to be an important year for transport and we have two keywords: competitiveness and sustainability.

In certain people’s eyes, the focus on these two main driving forces, competitiveness and sustainability, risks creating a significant dilemma: Should the EU try to boost competitiveness through a modern, innovative transport system or push for sustainability through unprecedented environmental policies and ambitious targets?

The Commission has to a large extent addressed the dilemma by betting on the leadership of Europe in the fight against climate change and the fact that the rest of the World will eventually follow, ultimately providing a competitive advantage for Europe. While this has not always proven to be true in the past, the agreement reached at the last UN Conference of Parties on Climate Change (COP21) may mean a step towards Europe’s ambitions with countries like the U.S. and China, which have insofar played the ‘competitiveness first’ card, committing to global environmental objectives.

What can we expect in the next months to reconcile these contradictory forces?

Competitiveness

The Netherlands EU Presidency kicks-off with a high-level conference at Schiphol airport today on the just-released EU Aviation Strategy. Coincidentally, Schiphol airport is celebrating its 100th anniversary this year …

Discussions on aviation have so far focused on alleged unfair competition from the non-EU airlines Beyond this populist debate, which seems to ignore what’s really needed in the European aviation sector, a serious rethink of the management of Europe’s strategic airports, a final solution for the capacity crunch and the completion of the Single European Sky are all long overdue.

The Commission is also looking at the competitiveness of the road transport sector and, despite the fact that the three initiatives on the social dimensions of transport, cabotage and road charging will not be grouped into a single legislative package, the Commission is addressing them simultaneously.

Several other initiatives are expected in the first half of the year including the mid-term review of the White Paper on transport, which touches on the competitiveness and also sustainability of the EU transport system. No major changes are expected in terms of long term objectives, but more emphasis will be put on the means to achieve them. The review will also probably sound the death knell of the modal shift approach, adopted in the 2009 White Paper, in favour of the more comprehensive concept of co-modality, which recognizes the need to use all the means of transport and for each one to achieve its best and most sustainable performances.

Sustainability

Talking about sustainability, another Presidency meeting will follow in April, to discuss smart and green mobility. No surprise, this meeting will touch on cycling as well as other types of active mobility. The Dutch aim to adopt the ‘Amsterdam Chapter’ on green and smart mobility, as mentioned by the Minister during the last Environmental Council of 2015. The Informal Transport Council will then follow in June, at the end of the Presidency.

Decarbonising transport is an important part of the Energy Union strategy, and a Communication is expected in the second half of the year. The Communication should be preceded by a new proposal for the continuation of the Effort Sharing Decision post-2020, which currently sets binding national targets for GHG emissions coming from agriculture, building, waste and indeed transport (excluding aviation and international maritime shipping).

More will come our way on CO2 emissions targets for both Heavy-Duty Vehicles (HDVs) and Light-Duty Vehicles (LDVs), such as cars and vans. The Commission started tackling HDVs emissions for the first time two years ago and is working on a new instrument which will help the monitoring process and hopefully lead to more informed choices from operators. On the LDVs side, post-2020 CO2 targets will have to be discussed after the modalities to achieve the current ones where agreed only in 2014. This debate has started prematurely due to the ‘dieselgate’ scandal which opened a Pandora’s box for emissions measurements performed by carmakers and authorised by national authorities. Some countries are undertaking initiatives to move away from diesel but will the scandal be the trigger for revamping the debate on energy taxation and the removal of the taxation advantage towards diesel in Europe?

Whilst everyone in Brussels is busy trying to minimize the negative spill-over effects of ‘dieselgate’ and to re-establish consumers’ trust in the automotive sector, DG CLIMA has gone through a major internal reorganisation with the ‘Transport and Ozone’ unit, which to-date dealt with transport emissions, being split into three units to reflect the non-ETS sectors (buildings, agriculture and transport). This means that all those affected by legislation on transport emissions may wish to get acquainted with the new “Mr Transport Emissions” in DG CLIMA.

By Laura Rozzo

 

 

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Davos chief Klaus Schwab

At the height of the eurozone crisis, EU leaders would frequently express annoyance that they were the focus of almost every major international conclave, from Group of 20 summits to annual International Monetary Fund meetings. Resentment would become particularly piqued when leaders from the developing world – like Brazil or Mexico – lectured their European counterparts on getting their economies in order.

That crisis may be in remission, but another European one – of refugees – is due to be among the main topics of conversation at the annual talkfest for global elites at the World Economic Forum in Davos, which starts today. According to the forum’s formal schedule, there are no fewer than five officially-sanctioned events on the topic, including a one-on-one session between host Klaus Schwab and Joachim Gauck, the German president; a panel discussion featuring Germany’s vice-chancellor Sigmar Gabriel and Swedish prime minister Stefan Löfven; and a press conference with the head of the International Organisation for Migration.

In a pre-Davos interview with the Associated Press, Mr Schwab said Europe was at a “crossing point”, and it needed to find a balance between the humanitarian instinct to help struggling refugees with the reality of limited capabilities to do so. “My concern is that Europe, at the moment, is in a phase of disintegration,” Mr Schwab told the AP. “Europe would be completely marginalized if we break up into different nation-states again.”

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DHL Express (Italy) and DHL Global Forwarding (Italy)
Competition
In the field of competition law, the leniency programmes of the EU and of the Member States coexist autonomously

Source : © European Union, 2016 - EP

The December European Council debated in fact all the major crises that confronted Europe in 2015. Whether it was the migration and refugee crisis, EMU reform or Brexit, in all of these discussions we made some progress but for sure not enough. Let us have no doubt that 2016 will also be overshadowed by these challenges. Our community is experiencing a stress test. And what is most challenging is that we are being tested on all possible fronts at the same time. Today, let me say it loud and clear. I will not rest until we work out solutions to all these challenges. Our strength comes from our unity. Therefore keeping European unity will continue to be my main goal in 2016.

Dear members, let me start with the migration and refugee crisis, an existential challenge for the EU. As you remember I have emphasised for months, in fact from the very beginning of the migration crisis that there is no good alternative to border protection. This is a conditio sine qua non of any effective migration policy.

After the December European Council, we can be a bit more optimistic. The leaders' discussion concentrated on ways and means to strengthen external border control. All leaders acknowledge that protecting Schengen requires difficult decisions. In this context, we agreed to rapidly examine the European Commission's proposal to strengthen the EU's external borders, including the idea of the European Border Guard. This is a priority for the Dutch Presidency and we should have political agreement in the Council by June.

The agreement of by Greece to accept a Rapid Border Intervention Team from Frontex already in December is another indication that we have started to move in the right direction when it comes to guarding the external border.

Despite political progress, I have to admit that there is a clear delivery deficit on many fronts, from hotspots and security screening in frontline countries to relocation and returns. The action plan with Turkey, although promising, is still to bear fruit.

I share the sentiment expressed by Prime Minister Rutte that we have no more than two months to get things under control. The statistics over the Christmas period are not encouraging with over 2,000 arrivals to the EU per day, according to Frontex. The March European Council will be the last moment to see if our strategy works. If it doesn't we will face grave consequences such as the collapse of Schengen. For sure this kind of alternative to our strategy is not pleasant and so I appeal that Member States implement our agreements in full.

Dear members, let me turn to the UK. In December, leaders had a substantive and constructive discussion on the UK question. Prime Minister Cameron set out his position in detail, in particular regarding benefits and free movement. He explained his request for a model based on four years and reiterated the openness to alternative solutions but only if they achieve the same objective. Leaders voiced their concerns on specific issues, but also demonstrated willingness to look for compromises. Building on this positive debate, we agreed to work together to find solutions in all four baskets raised by PM Cameron: relations with the euro area, sovereignty, competitiveness and on benefits and free movement. Hard work on all these baskets is progressing and as we speak my people are working with the Commission to bring us closer to the solution. In the run-up to the February European Council, I will table a concrete proposal for a deal with the UK to all EU leaders. Let me stress again that from the very beginning of these negotiations I have been very clear. There will be no compromise on fundamental values like non-discrimination and free movement. At the same time I will do everything in my power to find a satisfactory solution, also for the British side. As of today the result of the referendum is more unpredictable than ever before. Time is of essence here. And this is why I will work hard to strike a deal in February. It will not be easy but it is still possible.

Dear members, the European Council also discussed counter-terrorism in light of the Paris tragedy. These outrageous acts only have strengthened Europe's resolve to fight terrorism. Leaders agreed to operationalise our policies, including systematically sharing information on foreign fighters through Schengen and Europol, as well as between Member States' authorities. Security services should conduct joint threat analysis if it can prevent future attacks. Europol has already reported a significant rise in information-exchange on foreign fighters through its new Counter Terrorism Centre with almost every Member State contributing data. Without vigilance and real co-operation, we cannot defeat this threat and the likelihood of further attacks remains very high. I urge all states to cooperate fully.

The European Council was an opportunity for the leaders to assess the state of play in building the Energy Union. There is a significant progress in the level of interconnections between states on the gas and electricity markets, including the parts of Europe that have been isolated until now. When I proposed the energy union concept as Polish prime minister, this was one of my major goals.

I am happy to see clear progress but still we need more. The European Council asked for all relevant legislation to be brought forward, including on strengthening the transparency on the gas market. Talking about the Energy Union, leaders had an exchange on the Nord Stream II project, some of them were very critical, and we also discussed the conditions that need to be met by major energy infrastructure projects. We reiterated that any new infrastructure should be fully in line with the Energy Union objectives. Not to mention the obvious obligation that all projects have to comply with all EU laws, including the third Energy Package. These are clear conditions for receiving support from the EU institutions or any Member State - political, legal or financial. Now the ball is in the court of the European Commission. But the political message of the European Council is clear and goes in a similar direction as the position expressed by the European Parliament.

Leaders praised President Hollande and congratulated him on the successful hosting of the COP21 and on the agreement of the first ever, legally-binding global climate deal. We have asked the Commission and the Council to assess fully what the Paris Agreement implies for our own energy and climate policy mix.

Last, but certainly not least, the European Council addressed economic challenges.  Leaders confirmed their commitment to work towards completing EMU further based on the Five Presidents' report. Even if Europe is overwhelmed by the migration crisis, we cannot afford to wait with the necessary EMU reforms for better days. In this spirit ministers were asked to advance their work rapidly on a number of areas, including the banking union.

The European Council also emphasised the importance of deepening the single market in key areas. Delivering a digital single market and building a capital markets union are our top priorities.

Finally, I want to warn against the increasingly alarmist rhetoric on the future of Europe. Neither naivety nor excessive pessimism will get Europe the results it needs. As Europeans we have to be both realistic and confident about our values and beliefs. I am reminded of Arnold Toynbee's famous remark that civilisations die from suicide, not by murder. Europe is stronger than some may think, and we still have the power and the public mandate to do what is necessary. Thank you.

AMENDMENTS 1 - 155 - Draft motion for a resolution on the 2015 Report on Montenegro
Committee on Foreign Affairs

Source : © European Union, 2016 - EP

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The reformers: economy minister Emmanuel Macron, left, with prime minister Manuel Valls

Le Monde called it François Hollande’s “last-chance plan”. Struggling with an unemployment rate that stubbornly remains above 10 per cent, and saddled with a promise not to seek re-election in 2017 unless joblessness falls, the French president on Monday unveiled a €2bn scheme aimed at reversing an “economic emergency” facing his country.

The measures themselves are mostly targeted at the young: a €2,000 subsidy for each young worker hired by small companies; creating 500,000 vocational training schemes; and a programme to boost apprenticeships. The price-tag may be high, but taken together the initiatives appear less ambitious than the so-called “Loi Macron”, an economic reform plan passed a year ago under the aegis of Mr Hollande’s youthful economic minister. That plan has failed to produce any signs that unemployment is dropping, raising questions over whether the new programme will provide much help.

As with the Loi Macron, Mr Hollande’s new plan seemed to please nobody. Reformers like Mr Macron and Manuel Valls, the prime minister, are viewed with suspicion from within the ruling Socialists because of their “liberal” views. But the measures backed by the two men never seem to go far enough to please business interests, either.

The French business daily Les Echos has a useful summary of reactions from business and labour leaders, with Medef, the main French employers’ association, offering a rather tepid endorsement by calling it a step “in the right direction.” The head Medef’s sister organisation for small and medium-sized businesses was similarly lukewarm, saying he was doubtful it would have any long-term effects. Predictably, the Républicains, as party boss Nicolas Sarkozy has re-branded the French centre-right, were withering in their criticism. The conservative Le Figaro quotes party spokesman William Larrivé calling the plan “an insult” to France’s unemployed.

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Toshiba v Commission
Competition
The General Court upholds the fines of €131 million imposed on Toshiba and Mitsubishi Electric for their participation in the cartel on the market for gas insulated switchgear

The Cooperation Council between the European Union (EU) and the Republic of Armenia held its sixteenth meeting on Monday, 18 January 2016. The EU was represented by Mr. Bert KOENDERS, Minister of Foreign Affairs of the Kingdom of the Netherlands, acting as head of the European Union delegation on behalf of the High Representative of the Union for Foreign Affairs and Security Policy, Ms Federica Mogherini, and by Mr Johannes HAHN, Commissioner for European Neighbourhood Policy and Enlargement Negotiations. The Armenian delegation was led by Mr Edward NALBANDIAN, Minister of Foreign Affairs of the Republic of Armenia, acting this year as Chair of the Cooperation Council. 

The European Union and Armenia reconfirmed their joint commitment to enhance and deepen their cooperation in all areas possible and compatible with Armenia's new international obligations deriving from its accession to the Eurasian Economic Union.

Both sides welcomed the launch of negotiations and provided further political guidance and impetus as regards the future EU-Armenia Agreement, meant to replace the current outdated Partnership and Cooperation Agreement and to reset their relations within the wider framework of the reviewed European Neighbourhood Policy and the Eastern Partnership.

The EU and Armenia reviewed activities undertaken and meetings held during the past year in the context of the Eastern Partnership and underlined the importance of effective joint actions to build on the successful 2015 Eastern Partnership Summit held in Riga. They addressed issues related to the implementation of the reviewed European Neighbourhood Policy and shared the view that updated Partnership Priorities should be defined after the conclusion of the new EU-Armenia agreement.  

The Cooperation Council reviewed recent political, economic and social reforms in Armenia. The EU took note of progress achieved in implementing these reforms and of Armenia's commitment to continue on this positive trajectory, while at the same time encouraging Armenia to accelerate reforms in specific areas, notably democracy and the rule of law, anti-corruption, human rights and fundamental freedoms, constitutional and judicial reform. Particular attention was drawn to the need for reform of the electoral system, to the need to appropriately implement the new constitution and assure media freedom, as well as to the important role of civil society. 

The EU confirmed its continued support for Armenia's reform efforts, including implementation of the visa facilitation and readmission agreements, and encouraged Armenia to make best use of the assistance it receives to this end from the EU. For 2014-2017, between 140 and 170 million EUR, focused on private sector development, public administration reform, and justice sector reform, are to be disbursed. 

The Cooperation Council welcomed the good progress made in implementing the Mobility Partnership. The EU reiterated its firm commitment to enhance the mobility of citizens in a secure and well-managed environment, which is a core objective of the Eastern Partnership, and recognised the high importance attached by Armenia to the mobility of its citizens. Moreover, both sides welcomed the overall good implementation of the Visa Facilitation and Readmission agreements since the previous Cooperation Council. 

The Cooperation Council addressed also regional issues of common interest, including the prospects for the resolution of the Nagorno-Karabakh conflict. On the latter, the EU reaffirmed that the status quo is unsustainable and that the peaceful resolution of this conflict remains a priority issue for the EU. The security situation along the Line of Contact and the international border between Armenia and Azerbaijan is a matter of serious concern. The EU reiterated its call for restraint and further engagement in the OSCE-led negotiation efforts. Moreover, the EU reiterated its support to the negotiations mediated by the OSCE Minsk Group Co-Chairs aimed at settling the conflict. It encouraged further dialogue between Armenia and Azerbaijan, including at the level of Presidents and welcomed the summit held on the initiative of the Co-Chairs in Switzerland on 19 December 2015 which provided an important opportunity for exchanges on the way ahead. Furthermore, the EU reiterated its willingness to support peace-building activities and its readiness to provide reconstruction and rehabilitation support to the regions affected by the conflict, once a peace deal is struck. 

Plenary sessions : Negotiations on a Trade in Services Agreement (TiSA), with countries representing 70% of world trade in services, should deliver international rules and more opportunities for EU firms to supply services such as transport and telecoms in third countries. But "nothing should prevent EU, national and local authorities from maintaining, improving and applying their laws", notably on labour and data protection, say international trade MEPs in recommendations, voted on Monday, to EU negotiators.

Source : © European Union, 2016 - EP