Cecilia Malmström has fired a loud warning shot in the direction of Washington, saying Brussels will retaliate if Donald Trump slaps tariffs on European steel as part of his threatened crackdown on imports on national security grounds.
These are tense days indeed in transatlantic relations. The trade commissioner’s intervention came on the eve of an EU antitrust ruling that will hit Google today with a fine of more than €1bn (quite possibly significantly more than €1bn). This is small change for Google but it is bound to trigger a sharp response from American business, which still bristles at a ruling last year that handed a €13bn bill for Irish back taxes to Apple.
Read moreOn 28 June, EU ambassadors endorsed the compromise reached between the Presidency and the European Parliament on the proposal for a regulation on the establishment of the European fund for sustainable development (EFSD).
''Thanks to today's agreement, we will be able to implement a new fund to support sustainable investment projects in developing countries", said Marlene Bonnici, Permanent Representative of Malta to the EU and President of the Permanent Representatives Committee. ''Together with the new European consensus on development adopted earlier this month, the establishment of the EFSD will contribute to giving a new impetus to the EU's development policy, while addressing the root causes of migration in the long term.''
Marlene Bonnici, Permanent Representative of Malta to the EU and President of the Permanent Representatives CommitteeThe EFSD is the main instrument for the implementation of the European external investment plan (EIP) to support investment in African and neighbourhood countries. The plan aims primarily at creating jobs and addressing root causes of migration. It will also contribute to the implementation of the Paris agreement on climate change (COP 21).
On the basis of an initial budget of 3,35 billion euros, the fund is designed to trigger up to 44 billion euro of investments. This amount could be doubled if member states and other donors match EU contributions.
The EFSD will operate as a "one-stop shop" to receive financing proposals from financial institutions and public or private investors and deliver a wide range of financial support to eligible investments. It will offer guarantees and use blending mechanisms to encourage the private sector to invest in more risky contexts, such as fragile states or conflict-affected areas.
The Parliament and the Council will now be called on to formally adopt the regulation, in order to be able to setup the fund as soon as possible.
On 28 June 2017, EU ambassadors endorsed the agreement reached between the Presidency and the European Parliament on temporary autonomous trade measures in favour of Ukraine.
"These measures are a gesture on our part of tangible political and economic support to Ukraine. Given the difficult situation Ukraine is currently facing, we hope to proceed swiftly with the implementation of this regulation "
Christian Cardona, Minister for the economy, investment and small business of MaltaThe proposal is aimed at improving access for Ukrainian exporters to the EU market, in view of the difficult economic situation and the economic reform efforts undertaken by Ukraine.
It adds to trade provisions already introduced under an EU-Ukraine association agreement signed in 2014. Those provisions have been provisionally applied since 1 January 2016.
Applying for a three-year period, the proposed measures consist of:
1) additional annual import quotas at zero tariff for the following agricultural products ('tariff rate quotas' at 0%):
2) full removal of import duties on several industrial products, such as fertilisers, dyes, pigments and other colouring matters, footwear, copper, aluminium, as well as television and sound recording equipment.
Safeguard measures will apply. Ukraine will be obliged to respect the same principles as under the association agreement. These include respect for democratic principles, human rights and fundamental freedoms and for the principle of the rule of law, as well as continued and sustained efforts with regard to the fight against corruption and illegal activities.
Procedure and next stepsThe INTA committee endorsed the deal on behalf of the Parliament on 20 June. The Parliament and the Council will now formally adopt the text by the end of July. The regulation should be published and enter into force by the end of September.
An EU-Ukraine summit is scheduled for 12-13 July 2017 in Kiev.
It wasn’t quite the tsunami some were predicting after the first round of the French general election on 11 June, but Emmanuel Macron’s extraordinary story continues.
After securing the presidency on 7 May with the second-highest run-off score under the Fifth Republic, the new head of state’s La République en Marche (LRM) – a party that won’t be one until July – secured 308 of the 577 seats in the National Assembly on 18 June, with a further 42 seats for its allies from former justice minister François Bayrou’s party, MoDem.
This isn’t a record. In 2002, Jacques Chirac’s UMP won 365 seats. But what does matter is that LRM has a majority by itself, should relations with MoDem deteriorate further than they did in the week following the elections.
However, faced with allegations that MoDem MEPs siphoned funding from the European Parliament to the party, the party’s three ministers ‒ Bayrou, Sylvie Goulard at defence and Marielle de Sarnez at European affairs ‒ asked Edouard Philippe not to include them in his post-election cabinet. For both Bayrou and Macron, it became impossible for the minister guiding legislation on the ‘moralisation’ of politics to hold on to his position in the face of an official enquiry. The extent to which Bayrou jumped or was pushed has not yet fully emerged.
A fourth minister from the first Philippe government, the former Socialist Richard Ferrand, one of the first converts to Macronisme, also stood down over separate allegations about his past activities. Re-elected to the Assembly on 18 June, he is expected to chair the LRM group.
“The major difference between this legislature and its more recent predecessors is a political one”
The incoming legislature does show some original characteristics. First, three-quarters of deputies are newcomers. Second, there are more women deputies than ever before: 223 (38%) compared to the last parliament’s previous best of 155 (27%). What is more, the proportion of women elected is much closer to the overall proportion of candidates, which was a little over 40%, despite the penalties parties risk if they don’t run an equal number of women and men.
The Assembly is also younger on average than its predecessor: 48 years compared to 53 in 2012. There are far more deputies in the 20-30 years and 30-40 years age groups than ever before, and far fewer are over 60 years old.
Macron’s promise to shake up the political class has obviously paid off in respect of the ‘newness’ of the class of 2017. But in other ways it hasn’t. The largest socio-professional group in the Assembly are defined as cadres (senior management), and they are followed by ‘category A’ civil servants, then businessmen and -women. The technocratic and business elites that gave us Macron and his PM will throng the Bourbon Palace.
Of course, the major difference between this legislature and its more recent predecessors is a political one. There is no clear left-right divide between government and opposition. LRM-Modem straddles the broad centre. To its right, the Republicans (LR) and their allies in the Union of Democrats and Independents (UDI) number some 136 deputies, along with various unaligned right-wing deputies. But already, before parliament has formally met, the LR-UDI group has splintered, with about 40 deputies forming a separate group willing to work with the government.
On paper, the Socialists and their allies, with more than 50 seats, have done far better than anyone expected. Below the surface, however, the situation is desperate. The collapse from more than 200 seats will have an enormous impact on party finances. More significantly, five years of ‘Hollandisme’ has seen the party’s presence evaporate at the various levels of local government. Moreover, the divisions between those prepared to work with the government and those opposed is likely to see them split into two groups in the Assembly.
By contrast, the right is still strong in la France profonde, and it is no surprise that leading right-wingers have decided to re-centre their power bases in regional assemblies or as the mayors of some of France’s major cities.
“It’s Macron who has a majority, and the elections are over”
The strength of the parties at local level will be tested in September, when half of the Senate is due to be re-elected. The upper house is elected by departmental colleges comprised of local councillors but dominated, in numerical terms at least, by municipal delegates. All the elections that determine the complexion of France’s local assemblies took place well before the launch of Macron’s En Marche!, and it’s not yet clear how the presidential party will go about recruiting supporters and candidates in the colleges.
Macron, however, already has a hard core of supporters in or connected to the Senate. Gérard Collomb, his interior minister, was a senator and mayor of Lyon. Two of his closest advisors, Jean-Paul Delevoye and Jean Arthuis, were once influential figures in the upper house and still have their networks. Delevoye handled the nominations of LRM candidates for the National Assembly and is almost certainly working on the Senate election. In the meantime, Macron has delegated François Patriat, a former Socialist and senator for Côte-d’Or in Burgundy to sound out ‘Macroncompatibles’ senators, mostly on the left, in an effort to establish a group of perhaps as many as 60 supporters, ahead of the Senate renewal.
The Senate cannot block legislation except over constitutional questions that are not put to a referendum. In any case, the right-wing majority there is unlikely to oppose Macron’s attempts to modify the labour law that he has made the flagship reform of his first months in power.
Opposition to that, within parliament, will come the rump PS, but above all from Jean-Luc Mélenchon’s La France Insoumise and from the Communists (PCF). The former have 17 seats and had hoped to persuade the latter, with eleven, to join them. But within the PCF leadership there is no love for Mélenchon and they have set up their own group, with the help of a quartet of overseas left-wing deputies.
However, it’s Macron who has a majority, and the elections are over. Now the politics begins.
IMAGE CREDIT: CC/Flickr – Parti Socialiste
The post The French elections are over ‒ now the business of politics begins appeared first on Europe’s World.
The Maltese presidency today reached an informal deal with the European Parliament on setting up a common system of certificates for people working in the inland navigation sector in the EU. Holders of these certificates will be able to practise their profession on inland waterways across Europe. The new system will improve career prospects in the sector and make it easier for qualified people to take jobs wherever they are available.
The single certification system will cover all crew members, from apprentices to boatmasters. Geographically it will apply to activity carried out on EU inland waterways falling under the scope of the directive, including the river Rhine. Both aspects constitute a clear improvement on the current situation, in which EU legislation on mutual recognition in the sector only covers boatmasters - and only when they operate on rivers and canals other than the Rhine. The rest of the crew is covered by the horizontal directive on the recognition of professional qualifications.
The new certificates will be based on competence, bringing flexibility for talented and motivated people to progress faster up the career ladder. Currently it is common to require completion of a fixed number of years in one post before promotion is possible. Introducing competence-based qualifications should also improve safety and reduce accident costs.
To avoid disproportionate administrative burdens, the new rules will take account of the different characteristics of EU countries. Some member states have no inland navigation, some have waterways that are not connected to those of other member states, and in other countries inland navigation is only seasonal or a very limited activity. All those member states with at least some inland navigation will have to recognise the EU certificate on their territory, but the extent to which they will be required to 'transpose' or incorporate the other provisions into their national legislation will depend on the cost-effectiveness and added value for their individual circumstances.
"More generally, the presidency attaches importance to the full implementation of the TEN-T corridors through improving inland waterways infrastructure, and stresses that inland navigation is an integral part of the TEN-T network. Inland navigation is the most energy-efficient mode of transport and has great potential, especially for shifting the transportation of more freight from land. The single certificate system opens up new career opportunities and will hopefully give a boost to the whole sector", said Ian Borg, the Maltese Minister for Transport, Infrastructure and Capital Projects. "I am also glad that the rules will only have to be applied where necessary, as not all EU countries have a topography that is suited for this kind of transport."
The draft directive agreed today is part of EU efforts to promote inland waterway transport under the NAIADES II programme.
The presidency will submit the outcome of today's negotiations for endorsement by member states in the coming days.
EU Ministers for Transport, Infrastructure, and Communications meet in Luxembourg on 26 June 2017 and are expected to reach a general approach on two proposals under the Clean Energy package: the revised directives on energy efficiency and on energy performance of buildings. The Council is also taking note of progress on the other legislative files included in the package regarding in particular governance, energy from renewable sources and electricity market design.
A generous reprieve for lucky depositors and senior bondholders in Veneto Banca and Banca Popolare di Vicenza, the failing Italian banks at the centre of country’s latest effort to shore up confidence in its battered financial system.
Political expediency
Read moreChina’s Belt and Road Initiative (BRI) has the potential to spark a more ambitious and truly strategic EU-China conversation on crucial issues of global peace, security and economic governance.
Europe has so far focused on the obvious trade, business and connectivity dimensions of China’s ‘project of the century’. That is understandable: In a world hungry for more infrastructure, BRI is certainly about massive investments in roads, railways, bridges and ports. It is also about digital connectivity and expanding financial and cultural links. Businesses in Europe world are right to explore just how they can secure a piece of the cake. The EU-China connectivity platform has an important role to play in facilitating such a conversation.
Europe should not make the mistake, however, of viewing BRI solely through a narrow trade and business prism. The EU should widen its view of BRI, seeing it as not merely as an economic ‘project’ but as a reflection of Beijing’s ambitious vision of its role in a rapidly-transforming world.
China’s blueprint articulates its self-confident repositioning in an uncertain era marked by erratic American engagement with the world. As such, BRI creates an array of hitherto largely-unexplored opportunities for a deeper EU-China dialogue on issues ranging from peace and security to climate change, Africa and Agenda 2030.
In recent months, both EU and Chinese policymakers have underlined that uncertain times demand their “joint responsibility” to work for a strong rules-based multilateral order. “We are living in times of growing tensions and geopolitical unpredictability so our cooperation has never been so important”, EU foreign policy chief Federica Mogherini said after a recent meeting with China’s state councilor Yang Jiechi. The challenge now is to turn such statements into joint actions.
“China and the EU should seize opportunities for cooperation, ask questions and seek clarifications and explanations”
It should not be too difficult. While trade and investments continue to form the backbone of the EU-China relationship, both sides already meet for regular high-level strategic discussions on global and regional challenges. The vast scope and many facets of the BRI provide an opportunity to strengthen and deepen the strategic conversation as a first step to launching possible joint actions.
Three important areas deserve priority attention.
First, given their joint interest in Africa, the EU and China should use the opportunities opened up by BRI to explore ways of working together to boost the continent’s still vastly-untapped development potential. Europe may once have viewed China’s growing economic influence and outreach in Africa with a degree of wariness and suspicion. But the migrant crisis has made EU governments more acutely aware of the need to inject more funds into Africa’s quest for jobs, growth and development. Cooperation with China on issues of Africa’s development as well as the achievement of the sustainable development goals is now definitely in the EU’s interest.
Second, China’s new blueprint provides room for a stronger EU-China conversation on global economic governance, including in the vital area of climate change leadership as well as multilateral trade liberalization and financial regulation. With President Trump still undecided on whether the United States should stick with the Paris agreement on climate change, the initial focus should be on EU-China cooperation to maintain the Paris accord even if Washington pulls out of the deal.
Third, President Xi Jinping’s description of BRI as a “road for peace” and the EU’s recent steps to strengthen its defence identity open up opportunities for more pro-active EU-China cooperation on issues of global peace and security, including North Korea, Iran, Syria and Yemen as well as counter-terrorism. This also puts the onus on China to ensure that BRI projects such as the China Pakistan Economic Corridor (CPEC) do not exacerbate regional tensions.
“The way ahead is going to be complicated and difficult”
The EU-China relationship will benefit greatly from a wider, ‘beyond trade’ conversation which looks outside purely bilateral ties to ways in which Brussels and Beijing can work together constructively on the global stage. Such interaction can go a long way in creating more trust between the two sides. It can also help to create a more stable relationship anchored in a better understanding of each other’s priorities and concerns.
Over the coming months, as projects are identified, investments are lined up and work starts in earnest, China will have to ensure that BRI becomes more transparent, procurement rules become more rigorous and projects fit in with the global sustainable development goals.
Significantly, also as the initiative gains traction, China will inevitably have to conduct itself as a ‘traditional’ development partner, abandoning its ‘non-interference’ policies for a stance that is more concerned about the domestic affairs of its partner states, including on issues like governance and terrorism.
The way ahead is going to be complicated and difficult. China will need to learn how to deal with complex demands and painful facts on the ground in its myriad partner countries. Europe can help make the BRI a success by sharing its knowhow, knowledge and experience.
China and the EU should seize opportunities for cooperation, ask questions – however difficult – and seek clarifications and explanations. With BRI, China has embarked on a long journey and set itself many ambitious goals. But it cannot do it alone.
This article was first published in China Daily on 26 May 2017.
IMAGE CREDIT: palinchak/Bigstock
The post BRI can spark an EU-China conversation on peace, security and development appeared first on Europe’s World.
The Council adopted conclusions on support for the sustainable development of European marine and maritime economies. It recalls the vital role of oceans for life on earth, economic growth, employment and innovation and highlights that oceans and seas are facing increasing pressures and should be protected from the adverse consequences of climate change.
Member states are invited to manage the oceans and seas sustainably, promote renewable resource efficiency and renewable energies, remove barriers to growth, boost investment and strengthen trade cooperation.
The Council also calls for measures to ensure that outermost, peripheral, coastal and island regions are offered adequate growth opportunities. Member states should also work on supporting new technologies that contribute to the maritime economy and encourage closer cooperation between education and industry in order to help promote training and job opportunities.
The Council agreed today its position on a proposal for a revised directive on the energy performance of buildings. This agreement will allow for the start of negotiations with the European Parliament under the Estonian presidency.
Buildings are the largest single energy consumer in Europe, consuming 40% of final energy. The aim of the proposal is to promote energy efficiency in buildings and to support cost-effective building renovation with a view to the long term goal of decarbonising the highly inefficient existing European building stock. This will also be a major contribution to reaching the EU's 2020 and 2030 energy efficiency targets.
In particular, the proposal requires member states to establish long-term renovation strategies, addressing also energy poverty. It strengthens the links between energy efficiency policy and financing.
Another important feature of the revised directive is the promotion of electro-mobility, by requiring at least one charging point and pre-cabling for every third parking space for electric vehicles in non-residential buildings and pre-cabling for every parking space in residential buildings. These requirements will apply to buildings with more than ten parking spaces.
The introduction of a smartness indicator for buildings is proposed and the inspection of heating and air conditioning systems is simplified.
The proposal underlines the importance of aligning the Digital Single Market and the Energy Union agendas, as digitalisation of the energy system is quickly changing the energy landscape, from the integration of renewables to smart grids and smart buildings.
"We welcome this agreement which is crucial to reach our European objectives in energy efficiency and will also benefit citizens and businesses by significantly reducing their energy bills. This agreement is also important for further promoting electro-mobility in both non-residential and residential buildings."
Joe Mizzi, Maltese minister for Energy and Water ManagementBackgroundThe proposal on the energy performance of buildings amends Directive 2010/31/EU and was presented by the Commission in December 2016. It's part of the implementing legislation of the Energy Union Strategy and it has close links with the energy efficiency directive.
The general aim of the Energy Union strategy is to move towards the decarbonisation of the EU economy by 2030 and beyond, whilst strengthening economic growth, consumer protection, innovation and competitiveness.
The conclusions of the European Council of October 2014 set an indicative target of at least 27% increase in energy efficiency at Union level in 2030. This target should be reviewed by 2020 having in mind an Union level of 30%.
The Council agreed today its position on a proposal for a revised directive on energy efficiency. This agreement will allow for the start of negotiations with the European Parliament under the Estonian presidency.
The main objective of the proposed directive is to improve the existing provisions and to increase energy efficiency in order to ensure that the European Union's 2020 headline targets and 2030 climate and energy goals are met.
Energy efficiency is considered as an energy source in its own right. Increasing energy efficiency will benefit the environment, reduce greenhouse gas emissions, improve energy security, cut energy costs for households and companies, help alleviate energy poverty and contribute to growth and jobs.
The main elements of the revised directive are:
"We are extremely pleased that we have been able to reach an agreement on this important legislation, which was a priority of our Presidency . Energy efficiency is a crucial element for Europe's successful energy transition. It will allow us to move forward on the implementation of the Clean Energy Package."
Joe Mizzi, Maltese minister for Energy and Water ManagementBackgroundThe Commission proposal on energy efficiency updates the current Directive 2012/27/EU and was presented by the Commission in November 2016. It's part of the extensive Clean Energy Package, the implementing tool of the Energy Union strategy.
The general goal of the strategy is to move towards the decarbonisation of the EU economy by 2030 and beyond, whilst strengthening economic growth, consumer protection, innovation and competitiveness.
The conclusions of the European Council of October 2014 set an indicative target of at least 27% increase in energy efficiency at Union level in 2030. This target should be reviewed by 2020 having in mind an Union level of 30%.
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Donald Tusk has not given up hope that Britain might stay in the EU. Speaking at the start of a two-day summit of the bloc’s leaders in Brussels, the European Council president channelled John Lennon: “You may say I’m a dreamer, but I am not the only one.”
Read more