On 5/6 October, the Protection of Critical Energy Infrastructure (PCEI) expert group - set up under the European Commission’s Consultation Forum for Sustainable Energy in the Defence and Security Sector (CF SEDSS) - met at the European Defence Agency (EDA) to deliver the “PCEI Conceptual Paper: Focus on European Union Defence”. This step concludes the first phase of the expert group’s work. It should assist Member States to build consensus on how to enhance best the protection and resilience of defence related Critical Energy Infrastructures.
To address the risks, vulnerabilities, capability and research shortfalls of defence related Critical Energy Infrastructures (CEI), the PCEI expert group was set up in May 2016. It’s primary task was to assess how the defence sector can apply existing EU CEI legislation to enhance the protection of defence-related CEI and improve its resilience throughout Europe. For that purpose, the group developed an EU-wide defence focused ‘PCEI Conceptual Paper’.
The chairman of the group, Colonel Georgios Drosos from the Hellenic MOD, explains that “this Paper is intended to lead to a collaborative civilian-military approach which supports EU Member States in the identification of best practices and tools which will strengthen further the resilience of defence related CEI from any failures, risks or threats, including terrorism, cyber-attacks, migration flow stress, climate change, and natural hazards”.
Martin Konertz, EDA’s Capability Armaments and Technology (CAT) Director, considers that “this PCEI Conceptual Paper will provide an important building block for increased CEI resilience in the EU as it should inform a related EU policy or guidelines and assist Member States to initiate projects of common interest with the support of the EU”.
Besides the Conceptual Paper, the PCEI expert group also produced a factsheet designed to increase collaboration, awareness and visibility. Both documents will be submitted in mid-October to the European Commission’s DG Energy for final approval. Denis Roger, EDA’s European Synergies and Innovation (ESI) Director, stated: “In order to move beyond the conceptual phase and towards a broader consensus, we will need to foster a common PCEI culture within the EU defence sector and even beyond that, in wider society. In this way, we can contribute to securing a sustainable energy supply chain for both fixed infrastructures and for CSDP operations”.
The work of the PCEI expert group is led by the Ministries of Defence of Cyprus and Greece, supported by their respective national academia and research centres (Centre for Research & Technology Hellas – CERTH, Cyprus University of Technology, European University Cyprus, KIOS Research and Innovation Center of Excellence - University of Cyprus, National Technical University of Athens - NTUA). The Commission’s DG Energy and Joint Research Centre as well as the NATO Energy Security Centre of Excellence (ENSEC COE) also support the work of the PCEI expert group. At this stage, six EDA Member States (Bulgaria, Estonia, France, Ireland, Greece and Cyprus) are participating in the group. It is supported within the Agency at an inter-directorate level (CAT and ESI) by CAT Project Officer Protect, Dr Constantinos Hadjisavvas, and ESI Project Officer Energy and Environment Systems, Richard Brewin.
The EU Commission said the investigation launched on October 2014 on States’ aids to multinational companies has been concluded. The results of this investigation involve the relationship between Luxembourg and Amazon. The Commission has concluded that the US company had to pay €250 millions of unsettled taxes, resulting from the 2003 agreement between the European State and the US company.
The illegal aids were achieved through a system of double company: one operating and one holding. Amazon created two different companies on the Luxembourg territory: the first one, “Amazon EU”, operates Amazon’s retail business throughout Europe – having over 500 employees and buying and selling items for all the national sites of Amazon. The second one, “Amazon Europe Holding Technologies”, acts as an intermediary between the operating company and Amazon in the US. This company holds the intellectual property rights for Europe, and the operating company pays to the holding one annual royalties for the use of the name “Amazon”.
On the press release it can be read: “The Commission’s investigation showed that the level of the royalty payments, endorsed by the tax ruling, was inflated and did not reflect economic reality. On this basis, the Commission concluded that the tax ruling granted a selective economic advantage to Amazon by allowing the group to pay less tax than other companies subject to the same national tax rules.”
In fact, the Junker’s Commission notified that the 2003 agreement between the Junker’s government of Luxembourg and Amazon was poorly applied and had generated harm to both Luxembourg and the competition in the EU Single Market. Still in the press release, the Commission clarifies that the investigation did not question Luxembourg’s general tax system as such. In the next months, the Luxembourg’s tax authorities must decide the precise amount of taxes unpaid by Amazon on the national territory. This amount must be determined on the basis of the Commission’s decision, but it should be around € 250 million, plus interest.
If Luxembourg does not fulfil its duties, it may incur an infringement procedure, exactly like what has happened yesterday to Ireland, which never required Apple to pay €13 billions of taxes, unpaid because of a similar agreement that in 2016 the Commission considered as illegal aids. And for that, “The Commission has therefore decided to refer Ireland to the Court of Justice for failure to implement the Commission decision, in accordance with Article 108(2) of the Treaty on the Functioning of the European Union (TFEU).”
Tancredi Marini
For further information:
Commission’s release press:
Luxembourg: http://europa.eu/rapid/press-release_IP-17-3701_en.htm
Ireland: http://europa.eu/rapid/press-release_IP-17-3702_en.htm
Agenceurope: Bulletin Quotidien Europe 11876 – 5/10/2017