| | Dear Readers,
The new German parliament has been elected. A stable government must now be formed without delay. European policy should be a key focus of the negotiations because, now more than ever, Germany's security and prosperity depend on peace and freedom in Europe. The transatlantic rift between the USA and Europe once again became abundantly clear at the Munich Security Conference. Above all, the scandal in the White House between Trump and Vance on the one hand and Selenskyj on the other showed that the US is willing to distance itself from the West. This has also decided the important question of what dynamics globalisation will take in the future. Multipolarity, rather than bloc-building, will be the new reality of the world economy. For Europe, such a scenario is very challenging, but also one that offers opportunities. It is also interesting that the United Kingdom could suddenly play a significant role in the future of Europe again.
Whether it is defence, reducing bureaucracy or growth, the key for the next German government to solving many pressing problems lies in Germany taking a stronger leadership role in Europe. A study by the International Monetary Fund (IMF) recently showed that internal barriers in the European Single Market are equivalent to an inferred average tariff rate of 45 (!) per cent. The EU is therefore its own worst enemy. Against the backdrop of the Trump administration's threats to impose tariffs, this reveals two things: Firstly, the European Single Market is the EU's most important strategic asset in global trade conflicts and, secondly, it urgently needs to be developed further to achieve greater resilience and innovative strength in terms of energy supply, digitalisation and research and development. This chimes with Enrico Letta's call to establish a "fifth freedom" alongside the free movement of people, goods, capital and services - the freedom of research, innovation and education.
In Brussels and Berlin, the time has come for bold and ground-breaking decisions. Failure in this regard could prove to be an historic oversight.
Yours,
Henning Vöpel |
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| | | | | | Latest EU Proposals in Focus |
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| | Innovation|Infrastructure|Industry |
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| Regulation on Critical Medicines
On 11 March, the Commission will present a proposal for a Regulation on critical medicines. Recently, the EU has increasingly been confronted by supply shortages in essential medicines such as antibiotics. In addition to fluctuations in demand, the small-scale nature and geographical concentration of global supply chains are the cause of the problem (cepInput 12/2023). The proposal will include measures to strengthen Europe's resilience in accessing critical medicines. This will probably include financial and administrative support for strategic projects relating to the development and production of critical medicines in the EU. In addition, resilience criteria in public procurement will be used to strengthen the demand for critical medicines from EU production. |
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| | | | | | | EU Action Plan for the European Automotive Industry
On 5 March, the European Commission will present an action plan containing concrete strategies and measures to support the competitiveness of the European automotive industry. The action plan follows the Strategic Dialogue on the Future of the Industry, which the Commission held with car manufacturers, suppliers, infrastructure providers, trade unions, business associations, consumer protection organisations and NGOs, from 30 January to 3 March. It is expected that the EU action plan could provide answers to the following questions: How will the Commission deal in the short term with car manufacturers facing the threat of fines for failing to meet their 2025 CO₂ fleet targets? Will the review of the CO₂ fleet legislation be brought forward from 2026 to 2025? Will the de facto "combustion engine ban" for new cars and vans be revised from 2035 as part of a reform of CO₂ fleet legislation? Will it still be possible to register cars and vans that can use CO₂-free fuels such as e-fuels and biofuels after 2035? Will social leasing support programmes be used to stimulate the sale of e-cars? Will local content clauses be used to promote the sale of e-cars produced in the EU? Will EU targets for the decarbonisation of company fleets be introduced? cep has actively contributed its own proposals to the discussions on the competitiveness of the European automotive industry: cepStudy Towards decarbonised road transport driven by a globally competitive EU automotive industry. |
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| | | | | | | EU Roadmap to End Russian Energy Imports
On 26 March, the European Commission will present a roadmap for ending Russian energy imports. Following Russia's invasion of Ukraine in 2022, the Commission formulated its REPowerEU plan [see cepAdhoc 04/2022] in which it set out the goal of gradually ending the EU's dependence on fossil fuels from Russia well before 2030. However, following closure of the Transgas pipeline through Ukraine, the EU continues to purchase Russian natural gas, most notably by ship in the form of LNG. With its roadmap, the Commission also now wants to define concrete measures for ending these remaining energy imports. The main focus will be on the precise timing of a complete move away from Russian gas and how to deal with Member States that are still heavily dependent on natural gas imports from Russia. |
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| | | | | | | Savings and Investments Union: EU Outlines Plans to Complete the Single Market for Capital
On 19 March 2025, the Commission intends to present a Communication on the establishment of a Savings and Investment Union. The Commission believes that significant additional investment is needed to meet the challenges of the green and digital transition. Changes in defence policy and demographic trends in the EU will also warrant additional expenditure. The Commission is of the opinion that this expenditure cannot be covered by public funds alone. Instead, private capital needs to be mobilised. The "Savings and Investment Union" will contribute to this. On 18 July 2024, in her "Political Guidelines 2024-2029” Commission President von der Leyen announced the creation of a Savings and Investments Union. In September 2024, this announcement was detailed in a so-called mission letter to the new Financial Services Commissioner Albuquerque (see cepInput). The initiative is intended to contribute to deepening both the Banking Union and the Capital Markets Union. In particular, it aims to make greater and more targeted use of the high level of savings in Europe to achieve the numerous transformational challenges facing the EU. It is also a central element in the Commission's efforts to increase the EU's competitiveness (see Compass for EU Competitiveness of 29 January 2024). In February 2025, the Commission also initiated a Call for evidence. In the Communication now announced for mid-March, the Commission is expected to outline initial ideas on how the participation of small investors in the capital markets can be strengthened, for example through the development of EU savings and investment products. It will also present starting points for a revision of the EU securitisation rules. Proposals to facilitate access to investment and financing opportunities, and greater centralisation of the supervision of financial institutions and financial market infrastructures are also likely to be part of the Communication. |
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| | | | | | Information Technology |Digital Economy |
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| Internal Security: Commission Presents New European Strategy
On 26 March 2025, the Commission will present a comprehensive plan to strengthen the EU's internal security. The strategy is intended to strengthen the EU's internal security architecture. This includes increasing operational capacities (e.g. expansion of Europol and Frontex). Digital technologies will also play a key role, including measures on access to data for law enforcement, data retention and the fight against cybercrime. It will also focus on the law enforcement capabilities of digital technology and artificial intelligence. A new EU agenda for preventing and combating terrorism and violent extremism will also be part of the strategy. A Call for evidence on the announced strategy was launched by the Commission on 13 February. |
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| | | | Digitalisation |New Technologies |
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| Web 4.0 and Virtual Worlds: High-Level Global Conference Planned
The European Commission and the Polish Council Presidency are jointly organising a "High-Level Conference on Governance of Web 4.0 and Virtual Worlds". The conference will take place on 31 March and 1 April 2025 in Brussels and online. The aim of the conference is to initiate a global discussion on the future governance of Web 4.0 and virtual worlds. The results will be incorporated into the review of the "World Summit on the Information Society" (WSIS+20). A central topic will be the question of how to design ethical and value-based approaches to Web 4.0 and virtual worlds. The focus is particularly on the challenges of standardising virtual worlds, including internet standards and technical management. It also discusses how new frameworks for virtual worlds can be aligned with the existing model of internet governance. Interested organisations and individuals have the opportunity to present their positions during the meetings. In order to submit a statement, prior registration is required via this Link.
InvestAI: EU Wants to Mobilise € 200 billion of Investment in AI
In the coming months, the European Commission wants to set up a new European fund worth € 20 billion for so-called AI Gigafactories, as was first announced on 11 February at the "Artificial Intelligence Action Summit" in Paris. The aim of the "InvestAI" initiative is to mobilise up to € 200 billion for investment in AI. Large-scale AI infrastructure should enable the open and collaborative development of complex AI models and turn Europe into an "AI continent" - a term that has also found its way into the final version of the Commission's new work programme. The four future AI gigafactories will focus on training the largest AI models (Large Language Models). Each of the gigafactories will be equipped with around 100,000 state-of-the-art AI chips - four times more than are currently being used in existing AI factories. In addition, the aim is to provide especially small and medium-sized companies with access to this extensive computing power. |
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| | | | | | | | The Commission, the Council and the European Parliament regularly negotiate 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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| | | Geo-Blocking: Unjustified Barriers to Cross-Border Online Shopping
The EU Commission would like to assess whether the EU Geoblocking Regulation has achieved its intended objectives and is conducting a public Consultation on this subject.
Regulation (EU) 2018/302 (hereinafter referred to as the "Geo-blocking Regulation", see cepPolicyBrief) is intended to give individuals and companies better online access to goods and services from other Member States and thus enable them to benefit from the EU internal market when shopping online across borders.
When trying to shop online abroad, customers are sometimes unable to access foreign website or purchase goods because the provider does not deliver abroad or does not accept foreign bank cards. In some cases, providers also apply different terms and conditions to customers from other Member States for access to their goods and services. The blocking of websites and apps to customers from other Member States who wish to conduct cross-border business, or other "discrimination" against such customers on the basis of their nationality or place of residence or place of establishment in another Member State, is known as geo-blocking.
The aim of the Regulation is to prevent unjustified geo-blocking. For example, customers from other Member States should be able to make purchases under the same conditions as domestic customers. However, certain sectors such as audiovisual services, transport, financial services, electronic communications and healthcare services have so far been excluded from the Regulation.
The Commission would like your opinion on whether the Geo-blocking Regulation has achieved its intended objectives. The consultation is aimed at all stakeholders.
The submission period for opinions ends on 11 March 2025.
Go to Consultation
Pseudonymisation: New Guidelines from the European Data Protection Board
On 16 January 2025, the European Data Protection Board (EDPB) published its draft Guidelines 1/2025 on the pseudonymisation of personal data and opened it up for public Consultation. Pseudonymisation is a protective measure recognised by the General Data Protection Regulation (GDPR) in which the original data is changed in such a way that it can no longer be attributed to a specific person without additional information. This reduces the risks to confidentiality for those affected.
The guidelines begin by examining the legal definition of pseudonymisation and the terms used in that regard. They also show how controllers and processors can use pseudonymisation to meet certain data protection requirements. For example, pseudonymisation can help to comply with the principles of data minimisation and "privacy by design" (data protection that is built into the design of technology) or to ensure an appropriate level of data security. Due to its risk-reduction effect, pseudonymisation may also enable controllers to rely on the legal basis of legitimate interests for data processing in accordance with Art. 6 (1) (f) GDPR or to prove that further processing of the data is compatible with the original purpose of collection in accordance with Art. 6 (4) GDPR. Finally, the guidelines provide information on the effective application of pseudonymisation in practice. A list of application examples is also included as an Appendix. According to the guidelines, however, pseudonymised data, which could be attributed to a natural person by the use of additional information, remains personal and any processing of such data must therefore be in full compliance with the GDPR. This may also apply if the pseudonymised data and the additional information are not held by the same person. However, the European Court of Justice has yet to fully clarify the circumstances under which re-identifiability can be assumed.
The EDPB invites all stakeholders to comment on its guidelines.
The submission period for opinions ends on 28 February 2025.
Go to Consultation |
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| | | | | Banking Sector: Amending a Temporary Regulation on the Net Stable Funding Ratio (NSFR)
On 10 February 2025,the Commission launched a Consultation on amending rules regarding the net stable funding ratio (NSFR). Since 28 June 2021, banks in the EU have had to comply with the so-called NSFR standard. This standard stipulates that the amount of a bank's available stable funding (ASF) must correspond to at least 100% of the amount of the required stable funding (RSF) over a time horizon of one year. The standard was implemented in 2019 as part of an amendment to the Capital Requirements Regulation [CRR, (EU) No. 575/2013]. The CRR currently in force provides that, until 28 June 2025, EU banks can apply lower RSF factors for financial instruments that are crucial for liquidity management - in particular short-term securities financing transactions (e.g. (reverse) repo transactions) - than those set out in the Basel standard. Without an adjustment to the CRR provision, the higher factors of the Basel standard would apply from July 2025. The Commission wants to prevent this by submitting a proposal to amend the CRR and turn the temporary regulation into a permanent one. This is also taking place against the background that other important jurisdictions (e.g. the USA and the United Kingdom) have already decided to retain the lower RSF factors. A permanent solution will therefore ensure a level playing field.
The submission period for opinions ends on 10 March 2025.
Go to Consultation.
Securitisations: Countdown to the Review in the 2nd Quarter of 2025
On 19 February 2025, the Commission launched a Call for evidence on the review of the EU regulations on securitisations ("securitisation framework").
Calls from the political arena for a review of the EU securitisation framework have grown louder, not least due to the recently published reports by Christian Noyer, Enrico Letta and Mario Draghi. This would strengthen the lending capacity of European banks, deepen the capital markets, contribute to building a savings and investment union and strengthen EU competitiveness. Following a targeted consultation by the Commission from 9 October to 4 December 2024 (results here), the new Commissioner for Financial Markets, Maria Luís Albuquerque, has also been tasked in her Mission Letter with tackling a reform of the legal framework. In the recently published EU work programme, the Commission announced its intention to present a corresponding legislative proposal in the second quarter of 2025. In this context, it wants to amend (a) the Securitisation Regulation [(EU) 2017/2402, see cepPolicyBrief], (b) the Capital Requirements Regulation [(EU) No. 575/2013], (c) Delegated Regulation (EU) 2015/61 in relation to the liquidity coverage requirement for credit institutions, and (d) Delegated Regulation (EU) 2015/35 on the Solvency II Directive. The Commission is aiming to make the EU securitisation framework less burdensome, more principles-based, more proportional and more risk-sensitive, but without jeopardising financial stability. The focus of the review will be on removing obstacles to securitisation issuance and investment. These obstacles include certain transparency and due diligence obligations on the one hand and specific prudential requirements for banks and insurance companies on the other.
The submission period for opinions ends on 19 March 2025.
Go toCall for evidence. |
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| | | | Internal Market | Financial Market |
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| Start-Ups and Scale-Ups: New EU Strategy to Boost Growth
On 17 February 2025,the Commission launched a Consultation on a future "EU Start-up and Scale-up Strategy". According to the Commission, start-ups and scale-ups are crucial for Europe's competitiveness, as they often bring ground-breaking innovative solutions to the market. However, the Commission sees numerous barriers to the growth of these young companies in the EU. As part of the EU strategy, it therefore wants to identify measures to improve the framework conditions for start-ups and scale-ups. As announced in the "EU Competitiveness Compass", presented at the end of January 2025, the strategy will include ideas for improving links between universities and companies and for commercialising patents. Furthermore, obstacles to accessing venture capital will be removed. Steps will also be outlined on how start-ups and scale-ups can gain easier access to talent, skilled labour, state-of-the-art infrastructure, knowledge and services. A "European Innovation Act" will also form part of the initiative with the aim of facilitating access to European research and technology infrastructure for innovative start-ups and scale-ups. The Commission is also planning to introduce a so-called "28th legal regime" so that, instead of having to deal with 27 different legal systems in the internal market, innovative companies will be subject to just one set of harmonised EU rules. This set of rules will also cover aspects of corporate, insolvency, labour and tax law. The Commission intends to present the EU strategy for start-ups and scale-ups in the second quarter of 2025.
The submission period for opinions ends on 17 March 2025.
Go to Consultation. |
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| | | | | Consultation on a "GreenData4All" Initiative
On 5 February 2025, the Commission launched a Consultation on a "GreenData4All" initiative. In February 2020, as part of the European strategy for data [COM(2020) 66, see cepPolicyBrief], the Commission announced its intention to establish a European Green Deal data space ("green data space"). This data space aims to support the numerous measures of the Green Deal, for example with regard to combating climate change. In this context, the Commission also announced the presentation of a "GreenData4All" initiative to help press ahead with the green and digital transition in the EU. The aim of the initiative is to revise and update the existing EU provisions on environmental geospatial data (INSPIRE Directive 2007/2/EC) and on public access to environmental information (Directive 2003/4/EC). While the INSPIRE Directive established data infrastructure aimed at providing better access to geospatial information for individuals and businesses, the Directive on access to environmental information requires public authorities to make environmental information held by or for them available to applicants upon request. The "GreenData4All" initiative now aims to improve the shared use of environmental data by the public and private sectors and the general public and to support innovations based on environmental data. For example, in the context of raw materials exploration, AI-supported initiatives could utilise the green data space to develop new business models based on the wide range of geospatial data and data relating to the environment. This would increase the accuracy of identifying critical raw materials such as lithium and cobalt while minimising the environmental impact (see cepInput). As part of the Consultation, the Commission now wants to obtain opinions on the design of the initiative from stakeholders - e.g. environmental and geospatial data experts and organisations in the environment, marine, agriculture, utilities, smart cities, mobility and energy sectors. The first Call for evidence on the initiative took place between 26 February and 25 March 2024. In case you have not yet heard about the consultation, you will find the consultation documents here.
The submission period for opinions ends on 30 April 2025.
Go to Consultation. |
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| | | | | 20 March 2025
Luxembourg
DSGVO: Injunctive Relief Against Further Onward Transfer of Data and Additional Details on Compensation for Non-Material Damage
In his Opinion in Case C-655/23, EU Advocate General Sánchez-Bordona comments, firstly, on the existence of a right to injunctive relief under data protection law and, secondly, once again on detailed questions concerning compensation for non-material damage in the event of data protection infringements. The case was referred to the CJEU by the German Federal Court of Justice (BGH). One of the issues at stake is whether a data subject, whose personal data has been unlawfully disclosed to a third party, has a claim against the controller under the General Data Protection Regulation (GDPR, in particular Art. 17 thereof), to prevent further unlawful disclosure, if the data subject is not requesting the erasure of their data but wishes to prevent further unlawful disclosure of their data to a third party. The background to the case is that, during an application process, an employee of Quirin Privatbank AG forwarded a private message not only to the applicant but also to an uninvolved third person. In addition, the applicant is claiming compensation for non-material damage suffered as a result. Among other things, the German Court would like to know from the CJEU whether mere negative feelings such as annoyance, dissatisfaction, concern or fears are sufficient to constitute non-material damage or whether the detriment to the person concerned must go beyond this. In this respect, the CJEU has so far only ruled in another case that damage does not have to be of a specific degree of materiality in order to be eligible for compensation. |
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| | | | | | cepInput: Guarding the Gates: EU Strategy for a Safer Payment Market and Fraud Prevention |
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| | | Be it real-time transfers or international transactions, the digitalisation of the financial sector is progressing at a rapid pace. It offers advantages - but also poses risks, such as cyber-attacks on gaps in security. The Centrum für Europäische Politik (cep) has analysed the problem. The new study shows how the EU can counteract this with robust regulation.
Go to cepInput |
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| | | | cepInput: The German Election is a Landmark Decision on Europe |
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| | | The Centrum für Europäische Politik (cep) has analysed the plans for European policy put forward by the parties in the German general election. Result: Europe hardly plays a role, even though the EU is currently facing its biggest existential crisis in decades and this has a direct effect on Germany's prosperity and security. The think tank calls on the next German government to focus on Europe as a matter of urgency.
Go to cepInput |
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| | | | cepAdhoc: Taking EU Trade Diplomacy to Latin America |
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| | | Trade conflicts, US tariffs and pressure from Washington: the new US administration is compelling the EU to enter into new trade partnerships to a greater extent than ever before. Latin America is of crucial importance for Europe's economic and ecological future for several reasons. In a joint study, the Centrum für Europäische Politik (cep) and Luiss University Rome are calling on the EU to seize the unique opportunity offered by the continent.
Go to the cepAdhoc |
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| | | | cepAdhoc: The EU Action Plan for Affordable Energy |
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| | | Electricity, natural gas, renewable energy sources: the EU Commission wants to take action against high energy prices and is proposing solutions with its Affordable Energy Action Plan. The Centre for European Policy (cep) criticises the insufficient focus on market-based measures to strengthen the system integration of renewable energies.
Go to the cepAdhoc |
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| | | | cepAdhoc: Strategic Dialogue on the Future of the European Automotive Industry |
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| | | Eroding sales markets, competition from China and decarbonisation: the European automotive industry is facing major challenges. Brussels wants to strengthen the industry with a hastily prepared EU action plan. The Centre for European Policy (cep) is calling for a more fundamental approach to supporting the automotive sector.
Go to the cepAdhoc |
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| | | | | | The international website "Common Ground of Europe" is an initiative of the Centres for European Policy Network (cep). On the commongroundeurope.eu website, cep collects mainly English-language contributions, articles and interviews from decision-makers and experts in politics, business and science. We cordially invite you to take a look through our window on Europe. Here are some examples from the past month. |
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| | Paris 2025: European AI Between Grand Ambitions and Pressing Realities |
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| At the start of the third AI Action Summit in France, observers are wondering whether a continent dominated by regulation can finally help forge a global standard for AI governance. However, amid internal squabbles, ambitious funding gaps, and geopolitical pressures, will agreeing on a set of lofty ideals have any relevance for the EU’s vision of an AI continent that actually develops and deploys the technology at scale?
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| | | | Twelve European Thoughts on Artificial Intelligence |
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| The technological breakthrough of artificial intelligence (AI) undoubtedly represents a significant historical tipping point in the history of mankind. The consequences will be far-reaching and fundamental for people, their relationships and society. At the moment, we can only guess what the actual consequences might be.
Go to article |
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| | | | | Dear Readers,
Europe needs a strong narrative for the future alongside its defence capabilities. Freedom of research, innovation and education can be that narrative. Right now, a window of opportunity is opening for Europe to develop as a place of new enlightenment and humanity, attracting talent and ideas from around the world. Offering a European alternative is a more attractive option than the path of servitude and isolation. Europe must have the courage to lead the free world, which is getting smaller and smaller.
Yours,
Henning Vöpel |
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