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Dear Readers,
On 14 July, the EU Commission submitted its “Fit for 55” package aimed at significantly tightening climate protection legislation. Stakeholders and civil society will be able to express their opinion in 14 consultations up until 28 September. Please pay close attention to these consultations. You will find summaries and links to them in this Newsletter.
Also, August will see the start of the first payments to individual Member States from the Corona recovery fund NextGenerationEU. This is worth almost € 700 billion of which € 312 billion does not have to be repaid directly. So far, 16 Member States have been granted resources from the fund.
Our August Newsletter also takes a look at the Commission’s efforts to strengthen competition on digital markets. The main task will be to bring the definition of the relevant market into line with the digital age. Also on the agenda is sustainable mobility in cities.
Interested?
Then we wish you an enjoyable read.
Best wishes
Centrum für Europäische Politik |
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| The Corona recovery fund, or NextGenerationEU, aims to make the post-pandemic future greener, more digital and more resilient. In order to receive resources, each Member State must submit a recovery and resilience plan which will be assessed by the Commission. Germany’s plan has already been approved. The Federal Government focussed on climate change and digital transformation and will receive € 25 billion. By comparison: France will receive about € 39 billion and Italy € 191 billion. |
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| Latest EU Proposals in Focus of the cep |
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Reducing Greenhouse gas Emissions: “Fit for 55” Package
On 14 July, the EU Commission submitted its legislative proposals for reducing greenhouse gas emissions in the EU by 55 percent by 2030. The consultations published by the EU Commission on this can be found in this Newsletter under “consultations”. |
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Relevant Market: Revision of the Market Definition Notice
On 12 July 2021, the EU Commission published the results of its evaluation on the definition of the so-called relevant market. The definition is of crucial importance for, among other things, assessing whether a company has a dominant market position. The principles applicable to the definition of the relevant market are set out in the Market Definition Notice. According to the evaluation, an update of the definition may be necessary particularly where digital services are marketed at a zero monetary price. In addition, when defining the relevant market, it may be necessary to take greater account of non-price considerations during substitution decisions. Whether and how the Market Definition Notice will be changed to address these problems, will now be assessed by the Commission (see cepStudy).
Press Release of 12 July 2021 |
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| EU Treaties and Institutions |
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Constitutional Conflict: Poland Disputes the Primacy of EU law
In mid-July 2021, two rulings by the Polish Constitutional Court challenged Poland’s continued participation in the European Union. In the first ruling on 14 July 2021, Poland’s most senior judges rejected the EU Regulation, permitting the European Court to decide on the “systems, principles and procedures” of the Polish courts, on the grounds that this provision is inconsistent with the Polish constitution. The judgement came on the same day as the European Court upheld the Commission’s claim against Polish judicial reform and ordered Poland to immediately revoke the provisions complained of, particularly those relating to the powers of the Polish Supreme Court's disciplinary chamber. In a second ruling, which was expected on 15 July but has been postponed to 31 August, the Constitutional Court in Warsaw will decide on a question raised by Prime Minister Mateusz Morawiecki as to whether Polish constitutional law prevails over European law in the case of a conflict between the two. The judgement will have major implications for Poland’s position in the EU. In particular, if the Polish court upholds the primacy of national law over European law, the crisis which has been triggered between Warsaw and Brussels could give rise to one of two scenarios: either a change to the constitution bringing it into line with the provisions of the EU Treaty which is considered to be incompatible with national law, or the initiation of proceedings for a voluntary exit from the EU.
Commission Press Release of 15 July 2021 |
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| The Commission, the Council and the European Parliament are negotiating in the so-called trilogue on EU legislative proposals in order to find a common position. We have put together a summary of the most important trilogue decisions since the last Newsletter: |
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Trilogue Agreement on Revising the Århus Regulation Right of Individuals to Bring Proceedings
The Århus Regulation [(EC) No. 1367/2006] is to be brought into line with the international Århus Convention which aims to guarantee public access to justice in environmental matters. In future, legal standing in environmental cases will be extended beyond NGOs, thus allowing individuals to request a review of administrative acts. For this they have to demonstrate either a sufficient public interest or an impairment of their rights, affecting them directly, caused by the alleged contravention of environmental law. In addition, the review request must be supported by at least 4000 EU citizens from at least five Member States, with each of those Member States being represented by at least 250 EU citizens. Before the amended Århus Convention can come into force, the trilogue agreement still has to be officially approved by Parliament and the Council.
Council Press Release of 12 July 2021 |
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Trilogue Agreement Regarding the Directive on Rules for Credit Servicers and Purchasers of Non-performing Bank Loans
On 28 June 2021, the European Parliament and the Council reached a provisional agreement in the trilogue on a directive harmonising rules for credit servicers and credit purchasers of non-performing bank loans. The new directive aims to support the secondary market for non-performing loans, i.e. loans where the borrower has been in arrears for more than 90 days or where repayment is unlikely. The directive will make it easier for banks to sell non-performing loans (also across borders) and thereby clean their balance sheets and strengthen their lending capacity. At the same time, the rights of borrowers will be protected. The European Parliamentary Committee on Economic and Monetary Affairs approved the agreement on 13 July.
Council Press Release of 28 June 2021 |
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| The EU Commission regularly asks stakeholders and interested parties from civil society for their opinion. Here is our short-list of the most important consultations: |
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Reducing Greenhouse gas Emissions: “Fit for 55” Package
The Commission has initiated 14 public consultations in connection with the publication of the “Fit for 55” climate package on 15 July, which comprises twelve legislative proposals for a fundamental revision and realignment of the European climate and energy law, in order to bring it into line with the aim of reducing greenhouse gas emissions by 55 percent as compared with 1990 levels: |
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1. EU Emissions Trading: Rules to be Tightened and Extended
In its consultation the Commission is asking for feedback on its proposal to revise the EU ETS Directive [2003/87/EC] which provides for a reduction in the quantity of allowances, the inclusion of maritime transport and an independent ETS for transport and buildings.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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2. EU Emissions Trading: Market Stability Reserve (MSR)
In its consultation the Commission is asking for feedback on its proposal to revise the MSR Decision [(EU) 2015/1814] whereby the current elevated percentage of allowances to be placed in the MSR should continue after 2023 until 2030.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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3. EU Emissions Trading: Aviation
In its consultation the Commission is asking for feedback on its proposal to revise the EU ETS Directive [2003/87/EC] which provides inter alia for an end to the free supply of allowances for aviation in the European emissions trading system.
The submission period for opinions ends on 28 September 2021.
Go to Consultation
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4. Effort Sharing National Carbon Reduction Targets for Transport, Buildings, Agriculture
In its consultation, the Commission is asking for feedback on its proposal for a revision of the Effort Sharing Regulation [(EU) 2018/842] with which inter alia the reduction target in the effort sharing sectors - in particular transport, buildings and agriculture - will be increased from 30 percent to 39 percent as compared with 2005.
The submission period for opinions ends on 28 September 2021.
Go to Consultation
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5. Carbon Border Adjustment Mechanism (CBAM)
In its consultation, the Commission is asking for feedback on its proposal to adopt the CBAM Regulation which aims to establish a border adjustment mechanism for imports into the EU.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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6. Social Climate Fund
In its consultation, the Commission is asking for feedback on its proposal to adopt the new Regulation on a Social Climate Fund which aims to reduce the burden on low-income households arising from the carbon pricing of fuels.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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7. CO2 Emissions from Cars and Vans
In its consultation, the Commission asks for feedback on its proposal to revise the CO2 Emissions Standards Regulation for cars and vans [(EU) 2019/631] which provides for tighter CO2 limits by 2030 and the abolition of the combustion engine by 2035.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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8. Land use, Land use Change and Forestry (LULUCF)
In its consultation, the Commission asks for feedback on its proposal to revise the LULUCF Regulation [(EU) 2018/841] which aims inter alia to bring about climate neutrality in the LULUCF sectors by 2035.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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9. Energy Taxation
In its consultation, the Commission asks for feedback on its proposal to revise the Energy Taxation Directive [2003/96/EC] which aims inter alia to introduce a kerosene tax on internal European flights.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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10. Renewable Energy
In its consultation, the Commission asks for feedback on its proposal to revise the Renewable Energy Directive [(EU) 2018/2001] which will inter alia increase the share of renewables in the energy mix from 32 percent to 40 percent in 2030.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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11. Energy Efficiency
In its consultation, the Commission asks for feedback on its proposal for a recast of the Energy Efficiency Directive [2012/27/EU] providing for an increase in the EU-wide energy efficiency target from 32 percent to 38 percent by 2030.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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12. Road Transport: Refuelling and Recharging Infrastructure
In its consultation, the Commission asks for feedback on its proposal to adopt the new Directive on alternative fuels infrastructure and to repeal Directive 2014/94/EU thereby providing inter alia for the deployment of recharging stations every 60 kilometers on motorways.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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13. Shipping: Low-carbon Fuels (FuelEU Maritime)
In its consultation, the Commission asks for feedback on its proposal to adopt the new FuelEU Maritime Regulation which inter alia establishes a cap on the greenhouse gas content of fuels from ships calling at European ports.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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14. Aviation: Sustainable Fuels (ReFuelEU Aviation)
In its consultation, the Commission asks for feedback on its proposal to adopt the new ReFuelEU Aviation Regulation under which more sustainable fuels, e.g. synthetic low-carbon fuels (“E-fuels”), will be mixed with the fuel supplied for aviation in the EU.
The submission period for opinions ends on 28 September 2021.
Go to Consultation |
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Marine Strategy Framework Directive: Revision of the Directive
In its consultation, the Commission asks for feedback on the revision of the Marine Strategy Framework Directive [2008/56/EC] with the aim of gathering opinions on the relevance of the Directive and how it has performed so far. The responses will be included in an impact assessment to assess various policy and legislative options.
The submission period for opinions ends on 21 October 2021.
Go to Consultation |
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End-of-life Vehicles: Improving Recycling
As part of the Action Plan for a Circular Economy [COM(2020) 98; see cepPolicyBrief 5/2020], the EU Commission has announced a revision of the EU Directive on end-of-life vehicles [2000/53/EC]. In parallel to this, the Directive on type-approval for motor vehicles [2005/64/EC] will also be revised as it also has an influence on the reusability, recyclability and recoverability of motor vehicles. In its consultation, the Commission wants to gather opinions which will be included in an impact assessment with a view to revising both Directives.
The submission period for opinions ends on 26 October 2021.
Go to Consultation |
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Surface and Groundwater Pollutants: Revising the List of Pollutants
The EU Commission is planning to revise the pollutant lists in Annex I and II of the Groundwater Directive [2006/118/EG] and in Annex X of the Water Framework Directive [2000/60/EC], and if necessary add further materials or material groups to them. The Groundwater Directive sets limits on levels of pesticides and nitrates in groundwater as well as additional substances which the Member States must take into account when establishing national thresholds. The Water Framework Directive regulates so-called “priority substances” for which limits must be met in surface waters and discharge of which into the relevant waters must be reduced or stopped. With the open consultation, the Commission wants to give the general public an opportunity to express its opinion on the planned revision of the pollutant lists.
The submission period for opinions ends on 1 November 2021.
Go to Consultation |
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Mobility Strategy: Sustainable Transport in Cities
As part of its mobility strategy (see cepPolicyBrief 9/2021), the Commission is currently developing legal requirements for “sustainable mobility” in cities. In its consultation, the Commission wants to receive feedback from the urban population and stakeholders on the reduction of transport-related carbon emissions as well as air pollution, traffic congestion and noise. It is also interested in suggestions on how to support zero-emission urban logistics and the use of low-emission transport.
The submission period for opinions ends on 23 September 2021.
Go to Consultation |
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Vertical Agreements: Revision of the Block Exemption Regulation
The EU Commission will revise the Block Exemption Regulation (BER) for vertical agreements [Regulation (EU) No. 330/2010, Vertical BER]. Vertical agreements are agreements between companies operating at different levels of the production or sales chain. Vertical agreements that harm competition are in principle prohibited. They may, however, be permitted if they contribute to improving the production or distribution of goods or to promoting technical or economic progress. The Vertical BER lists the permitted agreements. With the consultation, the Commission is aiming to gather opinions on the revised Vertical BER.
The submission period for opinions ends on 17 September 2021.
Go to Consultation
Horizontal Agreements: Revision of the Block Exemption Regulations
The EU Commission will revise the Block Exemption Regulation for agreements on research and development [Regulation (EU) No. 1217/2010] and the Block Exemption Regulation for specialisation agreements [Regulation (EU) No. 1218/2010] (together referred to Horizontal-BER). Horizontal agreements are agreements between actual or potential competitors. In principle, they are prohibited. They may, however, be permitted if they contribute to improving the production or distribution of goods or to promoting technical or economic progress. The Horizontal BERs specify in more detail when these requirements are met. The Commission is using the consultation to obtain opinions about where there is a need for change.
The submission period for opinions ends on 5 October 2021.
Go to Consultation |
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Social Taxonomy: Initial Drafts of the Platform on Sustainable Finance
In December 2019, the Council and the Parliament agreed on a classification system for sustainable economic activities (green taxonomy, see cepAdhoc). It came into force in July 2020. According to the Commission’s plans, however, in addition to the green taxonomy, there is also to be a social taxonomy. On 12 July, the “Platform on Sustainable Finance”, an advisory body of the EU Commission, submitted initial drafts with ideas for a social taxonomy which attempts to identify those economic activities which help to support social objectives. With the consultation, the Platform is aiming to gather opinions on its ideas for a social taxonomy. It will submit a final report in the last quarter of 2021.
The submission period for opinions ends on 27 August 2021.
Go to Consultation |
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20 - 24 August 2021
Budapest, Hungary
A three-day state celebration will be held to mark Hungary’s 1000th anniversary.
30 August 2021
Brussels, Belgium
Meeting of the Political and Security Committee, under the Slovenian EU Council presidency, regarding the future foreign policy strategy of the EU.
31 August 2021
Warsaw, Poland
Judgement of the Polish Constitutional Court on the question of whether EU law has primacy over Polish constitutional law in the event of a conflict. |
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| cepPolicyBrief: Digital Markets Act – Part I: Obligations for Online Platforms |
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| | Tech giants such as Google, Amazon, Facebook and Apple dominate the global internet market. Competition law is not sufficient to prevent the misuse of power because its enforcement takes too long. Last December, the Commission therefore submitted a law on digital services, the Digital Markets Act (DMA), which imposes rules of conduct on the operators of large internet platforms. The obligations cover problematic conduct which is frequently subject to investigation under competition law. The law thus prevents operators of large internet platforms from restricting competition or imposing unfair conditions.
Go to cepPolicyBrief 14/2021 |
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| cepPolicyBrief: Digital Markets Act – Part II: Enforcement and Procedure |
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| | The second part of the cepPolicyBrief on the Digital Markets Act looks at the enforcement and procedure of the planned law. Enforcement at EU level avoids diverging application of the DMA by the individual Member States. In order to ensure speedy procedures, however, national authorities should be included in the application of the DMA.
Go to cepPolicyBrief 15/2021 |
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| cepStudy: CO2 Border Adjustment Mechanism |
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| | Until now, EU companies have received free emission allowances in order to compensate for competitive disadvantages, arising from the strict EU climate change rules, as compared with companies from third countries. The Commission wants to abolish this free allocation and replace it with a CO2 border adjustment mechanism (CBAM) which will make imports from countries with lower standards more expensive. cep criticises the fact that European exporters will not receive any compensation for the loss of the free allocation, which will result in significant competitive disadvantages for European companies on world markets.
Go to cepStudy |
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| A selection from among the over 50 press reports on the work of the Centrum für Europäische Politik that appeared in July 2021. |
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| | “The Plan by Climate Fortress Europe will Jeopardise Germany’s Strength”
Die WELT picked up on the cepStudy about the CO2 border adjustment. It cited the call from cep experts to rethink the plan. The planned CO2 border adjustment protects European companies against cheaper competition but only on the EU market, whilst on the world market, European producers may no longer be competitive. French newspaper l’Opinion also devoted extensive coverage to the study.
WELT of 5 July 2021 and l'Opinion of 19 July 2021 |
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| | “The Upcoming Election sits at the Centre of a Propaganda Battle”
British daily, The Independent, quoted cep’s Head of Communications, Dr. Jörg Köpke, in an article on the spread of fake news during the German federal election campaign. Köpke explained the strategies being used by players in order to spread fake news in a targeted manner.
The Independent of 7 July |
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| | “Can a Higher CO2 Price on Petrol and Diesel be Avoided?”
Der Tagesspiegel devoted a detailed article to the election issue of petrol price increases to protect the climate. At the same time, a Forsa survey commissioned by cep produced some surprising results regarding the electorate’s opinions on climate change.
Tagesspiegel of 12 July |
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| | “Macron’s Climate Record is Poor”
Expert on the environment and European law at the Centre de Politique Européenne Paris, Marion Jousseaume, commented on French President Emmanuel Macron’s climate record in the Neue Zürcher Zeitung (NZZ). She clarified what it is that indicates a lack of ambition and the role played by the sensitivity of French people in matters of social justice.
NZZ of 12 July |
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