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europolitics.info
Analytical, Comprehensive, Independent
Thursday 19 March 2015 N° 5054 43rd year
EDITORIAL
EMU: New
warning
Towards “a new era
of tax justice”
By Tanguy Verhoosel
By Christophe Garach
The incidents at the anti-austerity rally
committed by violent protestors, on 18
March, in connection with the inauguration of the new ECB headquarters in
Frankfurt are a warning that European
policy makers would be wrong to minimise. As the Greek crisis grows more
toxic, governance of the Economic and
Monetary Union (EMU) becomes the
central issue. And it is no picnic.
With humour, even though the situation is serious, Jean-Claude Juncker
has just reminded French Prime Minister Manuel Valls that “the Commission
is not the government of Europe [...],
even if it acts that way”. Therein lies
the ambiguity. The backdrop is a shaky
EMU that takes crucial decisions in
the name of peoples, a totally unclear
‘European semester’, incomprehensible procedures and, at the end of the
chain, increasingly frustrated national
parliaments.
So what solution is there? For Mario
Draghi, whom the demonstrators
in Frankfurt probably did not hear, a
quantum leap in institutional convergence is needed. Meaning: a further
transfer of sovereignty to reinforce
incomplete governance. The problem
is that this federal leap is simply not
foreseeable in the short or medium
term. The Europhobes understand
that very well.
The Juncker Commission publishes
its initial proposals on fiscal transparency - on tax rulings, in particular.
The reactions are mixed
The presentation by the European
Commission, on 18 March, of a package of measures intended to reinforce
fiscal transparency in the EU with a
view to “combating tax avoidance and
tax optimisation” has elicited mixed
reactions.
The “flagship proposal” of this package, explained Taxation Commissioner
Pierre Moscovici, aims to impose on
member states the obligation to automatically exchange information on
their income tax rulings benefiting
multinationals, every three months as
of 2016.
In this context, the Commission suggests once again revising the directive
on administrative cooperation in the
field of taxation. A “retroactive dimension, which we believe to be essential”
would be added to the text: the 28
would also be required to communicate information on tax rulings adopted
since 2005, provided that they are still
in force.
This proposal by the Commission,
which goes further than the draft
currently being discussed within
the OECD, represents the first step
“towards a new era of tax justice,”
maintains the Commission.
Therefore, at
(continued on page 6)
the beginning
Relaunching CCCTB
On 18 March, the Commission also published a proposal for a directive which aims
to repeal the EU directive on the taxation of savings, now obsolete.
Moreover, in the communication on fiscal transparency that it adopted in parallel, it
confirms that it will present, in June, “ideas” with a view to relaunching the debate
on the introduction of a common consolidated corporate tax base (CCCTB) in the
EU. Pierre Moscovici has not excluded “slightly” amending the proposal that has
been on the Council’s table since 2011, but does not favour the option of strengthened cooperation. The Commission has also announced its desire to review the criteria for the EU code of conduct in the field of company tax, an intergovernmental
tool which since 1998 has already forced the 28 to dismantle more than a hundred
tax regimes considered “harmful to competition” in Europe. Lastly, it will strive
to evaluate the real depth of the “tax loophole” in the EU, considered by certain
experts to amount to 1,000 billion euro per year (860 billion euro in evasion and
150 billion euro in avoidance).
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3
EUROPOLITICS N° 5054 Thursday 19 March 2015
Contents N° 5054
Top stories
TRADE
EXTERNAL RELATIONS
INSTITUTIONS
Malmström unveils preliminary ideas
for ISDS reform in TTIP Page 4
Mogherini to visit
China in May Page 10
Improving hearings of
commissioners-designate Page 6
Economic & monetary affairs,
taxation
Towards “a new era
of tax justice”........................................... 1
Adjustments will not
endanger growth, Valls
tells Juncker............................................. 5
EU creditors resist Athens’
attempt to bypass
technical talks.......................................... 5
Trade policy
Malmström unveils
preliminary ideas for
ISDS reform in TTIP.............................. 4
FTA with Vietnam
nearing completion................................. 4
Institutions
Improving hearings of
commissioners-designate......................... 6
Business & competitiveness
Connected car short
of support in Europe................................ 7
Sectoral policies
In brief
Digital economy:
Dedicated task force
at DG Competition................................. 7
Budget for school fruit
and veg scheme in
2015-2016 approved................................. 7
GE-Alstom: Commission
agrees to postpone
its decision............................................... 7
Blockupy protest turns
violent in Frankfurt.................................. 9
TTIP: EU leaders
reiterate call to conclude
talks in 2015...........................................10
Insurance rules:
Amendments in
sight this year.........................................10
Cyber security: Incidents
cost up to 340 billion
euro - ENISA.........................................10
Data agreement seen
threatening
fundamental rights.................................10
ENERGY PREMIUM
On europolitics.info
- In Brussels, Polish farmers protest plans
for new coal mine
- Franco-German energy cooperation:
Challenges abound
- Linking of intraday power markets to
be pushed back to 2017
EU agenda...........................................11
Should transport policy
objectives be reconsidered?..................... 8
External relations
Climate: Debate over
review of Hyogo framework..................... 9
Mogherini to visit
China in May........................................... 9
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4
Thursday 19 March 2015 N° 5054 EUROPOLITICS
Malmström unveils preliminary ideas for ISDS reform in TTIP
By Joanna Sopinska
She dashes hopes for a permanent court in TTIP but says ‘yes’ to
appellate body
Trade Commissioner Cecilia Malmström
said she is in favour of creating a permanent
international investment court to settle disputes between foreign investors and host
countries, but not as part of the Transatlantic
Trade and Investment Partnership (TTIP)
agreement with the US. “I believe that we
should aim for a court that goes beyond the
TTIP. A multilateral court would be a more
efficient use of resources and have more
legitimacy,” she told MEPs on 18 March
while presenting her “preliminary ideas” for
improvements in the investor-state dispute
settlement (ISDS) mechanism to be negotiated with the US. The statement comes
after six European Socialist leaders, including
German Vice-Chancellor Sigmar Gabriel,
insisted in a joint statement issued in late
February on the need for a permanent court
and an appeal mechanism to be made part
of the ISDS in the EU free trade agreement
concluded with Canada (CETA) and in all
future deals, including the TTIP in particular. In order to improve the way ISDS cases
are handled, Malmström said she was ready
to propose the US to nominate, long before
any actual cases are launched, a “limited list
of trustworthy arbitrators who would decide
on all TTIP investment cases”. This, according to the Commission, would address the
problem of conflict of interest the current
system is creating, where arbitrators are also
lawyers and might expect to get business from
the investors in future.
The Commission is also ready to address
the general public concern about the potential threat the ISDS poses to governments’
right to regulate in the public interest. Malmström said she would like to include ”a full
article in the [TTIP] text that makes clear that
governments are free to pursue public policy
objectives and they can choose the level of
protection that they deem appropriate”.
In order to avoid a situation that an investor
can sue a hosting government just because
the regulatory environment changes, the
Commission wants to include a clause in the
TTIP that says that ”investment protection
rules offer no guarantee for investors that the
legal regime under which they have invested
will stay the same”. On the relationship
between the domestic legal system and the
ISDS, the Commission proposes two options:
either to force investors to choose between
national courts and ISDS from the outset
or to provide that investors have to abandon
any proceedings they have started in national
courts if they launch an ISDS case.
Malmström said she was in favour of introducing ”an appeal body, with permanent
members, directly within TTIP”. ”It would
ensure consistency of interpretation and
review of decisions,” she explained, adding that
the Commission will propose the same solution to its other negotiating partners, including Canada. Malmström emphasised that ”as
with the permanent court, however, there are
strong efficiency and legitimacy reasons to aim
for a multilateral appeal mechanism”. n
FTA with Vietnam nearing completion
By Sébastien Falletti
The Commission hopes to conclude
the FTA by this summer but stumbling
blocks remain
Trade Commissioner Cecilia Malmström is likely to conclude a free trade
agreement (FTA) with a country in Asia
during the first year of her tenure. Her predecessor, Karel De Gucht, failed to clinch
a deal with booming Vietnam during the
last weeks of his mandate, but the negotiations are picking up again, according to
EU and industry sources. “Both sides have
committed to concluding the negotiations
in the next few months while aiming for an
ambitious agreement,” said a Commission
official. Hanoi and the EU hope to narrow
down their differences during the next
negotiating round that starts on 23 March.
The negotiators hope to wrap up the
talks, launched in 2012, by this summer,
a knowledgeable source told Europolitics. Such cautious optimism is fuelled by
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Prime Minister Nguyen Tan Dung’s determination to finalise the deal, shrugging off
the concerns voiced by some top officials in
Hanoi. Against the backdrop of increased
tensions with neighbouring China over territories in the South China Sea, Vietnam
is eager to strenghten its relations with the
US and the EU. Last summer, anti-Chinese riots erupted in Vietnam in reaction
to Beijing’s growing assertiveness over the
Spratly and Paracel Islands.
However, several stumbling blocks still
need to be removed for Malmström to
claim victory. “Issues still under discussion
include, inter alia, trade in goods, services
and investment, government procurement,
competition-related aspects and geographical indications,” said a Commission official. The EU’s services sector in particular
still hopes for further tangible concessions
from Vietnam. With a population of 88
million people and GDP growth of 5.4% in
2013, the country is seen as one of the most
promising markets by foreign investors.
Growing numbers of international manu-
facturing companies are shifting their production from China to Vietnam. Yet, they
complain about the lack of adequate infrastructure, persistent corruption, as well as
the tight control imposed by one of the last
and most stringent Communist regimes on
the planet. n
TTP factor
The fate of the EU-Vietnam FTA might
be decided in the US Congress. The
pace of the negotiations is highly
dependent on the parallel trade talks
Hanoi is conducting with the US
(Trans-Pacific Partnership, TPP).
These multilateral trade negotiations
with eleven “like-minded” countries
in the Pacific region have stalled and
elicited mixed reactions from US lawmakers. In such a context, Vietnam is
unlikely to conclude a deal with the EU
if no breakthrough is achieved on the
TPP, according to trade analysts.
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5
EUROPOLITICS N° 5054 Thursday 19 March 2015
Adjustments will not endanger growth, Valls tells Juncker
The review of France´s delicate budgetary situation dominated the meeting in Brussels,
on 18 March, between French
Prime Minister Manuel Valls
and the College of Commissioners. Valls reassured the
commissioners that the French
government will announce an
adjustment package worth €4.2
billion by the end of April as
per the EU executive’s request
in exchange for the two extra
years granted to Paris to bring
the country’s deficit below the
3% of GDP threshold. However, Valls did not go into detail about how
he intends to meet this promise. He would
only tell reporters after the meeting that his
government will discuss over the next few
be “extremely vigilant not to slow down
growth”. It remains to be seen how Paris
aims to introduce further adjustments without resorting to austerity measures. Juncker
told reporters that his message to Valls was
that “savings could be made without endangering growth”. Referring to the extra time
granted to France, Valls stressed that he did
not ask for “any waiver and has
not been given any waiver”.
His remark came against the
backdrop of comments made
by certain government officials, among them those of
Ireland and Portugal, who suggested that Paris has received
favourable treatment compared to the smaller member
states. Valls listed the reforms
France still has to adopt by
2017: he highlighted pensions
and the issue of long-term
unemployment. He also raised
the issue of territorial reform
(ongoing) and the reform of
the state – parts of a work programme that
France will have to implement before the
general elections of 2017. Juncker praised
the reform of territorial administration. n
© PS
The Commission president praises
France’s territorial administration reform
weeks additional adjustments worth 0.2%
of GDP. The French Socialist said in a
joint press conference with Commission
President Jean-Claude Juncker that he will
By Jorge Valero
Manuel Valls reassure the commissioners
EU creditors resist Athens’ attempt to bypass technical talks
By Jorge Valero
Germany and the EU institutions may
meet Tsipras on the margins of the EU
summit
As Greece could run out of cash by the end
of the third week of March, the SYRYZA-led
government is pushing to bypass the stalled
technical talks in order to enable discussions
at the highest political level about the country’s liquidity needs. Greek Prime Minister
Alexis Tsipras has invited the representatives
of the EU institutions and some of his country’s largest creditors, among them Germany
and France, to a meeting on the margins of
the EU summit, on 19-20 March, with the
aim of unblocking at least part of the outstanding funds under Greece’s bailout programme. However, the international creditors remain strongly opposed to any attempts
to amend the procedure agreed on 20 February. The Eurogroup’s working group made
little progress on 17 March as the eurozone
member states insisted that the political dis-
cussion must be preceded by progress at the
technical talks on the reform package. For
now, Athens has not responded to its creditors´ demands for reforms in exchange for the
disbursement of the outstanding €7.2 billion
in bailout money. Moreover, the EU and
the IMF also continue to disregard Greece’s
financial woes, despite all the efforts made by
the technical experts deployed in Athens.
European Commission President JeanClaude Juncker said, on 18 March, that he
was “not happy” with the progress made over
the last few days. Diplomatic sources said that
Chancellor Angela Merkel would not decline
an invitation to participate in the meeting
proposed by Tsipras on condition that the
Eurogroup remains the executive body in the
process and that the 20 February framework
is respected. EU sources argued in favour of
making use of the “opportunity” of the European Council to discuss the implementation
of the agreement. “We won’t keep Greece in
the eurozone at any price, but under strict
conditions that are acceptable for both sides,”
Economic Affairs Commissioner Pierre Mos-
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covici said in an interview with the German
daily Die Welt on 18 March. He told reporters
later the same day that the eurozone is “firmly
committed” to keep Greece in its fold. “I am
convinced that a ‘Grexit’ would cause more
than a severe damage,” he stressed. However,
the country must meet its commitments and
the conditions laid down in the “common
road map” agreed on 20 February.
Tsipras told Greek MPs that his government will meet the terms of the deal. However, reiterated his warning that Greece “will
not be afraid of ultimatums” and that he will
not “tolerate” his ministers queuing to be
interrogated by the EU’s “technocrats”.
The tension between Greece and its
creditors continues to increase. The latest
turn came from a request allegedly made
by Declan Costello, the Commission´s representative in Athens, to the Greek government not to adopt its set of measures meant
to address the humanitarian crisis. Costello
argued that this was a “unilateral move” that
run counter to the spirit of the agreement
reached on 20 February. n
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6
Tax justice
(continued from page 1)
of June, the EU executive will present an “action plan,” whose objective
is two-fold: on one hand, to stop the
aggressive tax planning strategies of
multinationals; on the other hand, to
put an end to unfair tax competition
in member states in order to draw tax
bases to their territory at the expense of
their partners.
The proposal on tax rulings was
unanimously welcomed, even if some
professional circles fear a “bureaucratic nightmare” (international asso-
Thursday 19 March 2015 N° 5054 EUROPOLITICS
ciations of chartered accountants),
the disclosure of sensitive commercial
information or even an initial step
towards the abolition of tax rulings
(BusinessEurope).
But several parties consider that “the
Commission is ducking underneath
them” (Greens in Parliament) and
that it is “deceiving citizens” (Oxfam
NGO).
For the sake of transparency, they all
demand that the obligation to publish,
country by country, certain information regarding their activities (turnover, taxes paid, etc) be extended to all
multinationals. In a personal capacity,
Juncker and Moscovici are in favour of
this idea, underlined the Frenchman.
The Commission will launch an
“impact study” on the subject, it specified. This may lead to a proposal in
June.
In the press release that it published
on fiscal transparency, the Commission
is generally cautious, however. “The
objectives and the field of application
of a possible initiative must be very
carefully gauged,” it continued, highlighting in particular the need to protect data and trade secrets, as well as
to take into account the “international
dimension of competitiveness”. n
Improving hearings of commissioners-designate
By Ophélie Spanneut
Between national political agendas
and the grand coalition, MEPs have
little latitude other than on the format
The hearings of commissioners-designate in 2019 may well be more dynamic
than those in 2014. That in any case is
the aim of Richard Corbett (S&D, UK).
In his own-initiative report on improving the hearings procedure, he seeks to
reintroduce the practice of follow-up
questions. This would enhance “the
effectiveness and inquisitorial nature
of the hearings,” he explains. For the
2014 process, the political group leaders
decided, in contrast with what was done
in 2009, that 45 questions would be
asked (one minute for the question, two
minutes for the answer), sacrificing the
so-called ‘ping-pong’ model. As a result,
many MEPs asked the question they
had prepared and the commissionerdesignate responded or not.
Corbett proposes to limit the questions to 25 in all so that MEPs can grill
the candidate during the three-hour
hearings. However, the idea of reducing the number of questions does not
sit well with everyone. Cristian Dan
Preda (EPP, Romania), during an initial
debate in the Committee on Constitutional Affairs (AFCO) on 4 December
2014, pointed out that many members
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were frustrated over not having had
any speaking time during the hearings.
“We shouldn’t give more attention to
the commissioners than to our members.” This position results from the
media interest sparked by the hearings.
For a member of the EP, asking a question to a commissioner-designate is an
opportunity to appear in the media.
During an exchange in AFCO on 17
March, Liberal Maite Pagazaurtundúa
Ruiz (Spain) referred in a roundabout
way to the underlying problem: the
informal alliance in which the S&D and
EPP groups mutually support each other
to keep their respective weak links - in
2014 Miguel Arias Cañete for the EPP
and Pierre Moscovici for the S&D - from
being rejected. But for the rapporteur
(S&D), a member of the grand coalition, that is not the issue. The procedure
“works pretty well,” he replied. “What
brings down a candidate is broad consensus on his or her lack of competence.”
In practice, the arrangements resulting
from the grand coalition cannot be written into into the EP’s rules of procedure.
Another subject in the domain of wishful thinking is the deadline by which
member states must present their candidates. All would like to avoid a repeat of
the 2014 scenario. Jean-Claude Juncker
had set a deadline for member states, but
the negotiations to form a government
in Belgium prevented the country from
meeting the cut-off date. The rapporteur finds that it would be “useful to set
a deadline by which all member states
have to put forward a candidate” so as to
leave adequate time for the allocation of
portfolios and the holding of hearings.
True, but it is hard to imagine where
this obligation could be written. Furthermore, the Belgian case is likely to repeat
itself. Under the Belgian constitution,
federal elections are held on the same
day as European elections. The Belgian
candidate will therefore always be nominated during the period of negotiations to
form the federal government.
On the procedure for assessing candidates, the rapporteur would like to
amend the EP’s rules to prevent a large
number of separate votes, as in 2014.
If unanimity is lacking but the “coordinators representing a clear majority approve the candidate, a letter of
approval will be written, with mention
of the minorities in disagreement. If
there is no clear majority among coordinators, they may first request additional
information through further written
questions, then hold another hearing
and then vote in committee. The idea
is that the vote in committee should not
become the routine and thus risk losing
impact, explains Corbett.
What matters for the Commission is
that the rules are clear and are applied
uniformly. n
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7
EUROPOLITICS N° 5054 Thursday 19 March 2015
Connected car short of support in Europe
By Nathalie Steiwer
The future digital strategy may not
measure up to the ‘Industry 4.0’
revolution being led by Germany
With Germany taking the lead in the
race to the connected cars of the future,
the European Union lacks a comprehensive industrial policy to prepare the transition to the digital age. The fourth technological revolution will be a “cocktail of
technologies,” explained Andrea Renda
at a colloquium on ‘Industry 4.0’, on 17
March at the Centre for European Policy
Studies (CEPS) in Brussels. It will include
remotely connected objects, continuous connectivity, 3D printing to produce
objects remotely or advanced robotics.
Among the benefits of Industry 4.0,
Renda mentioned greater decentralisation,
energy efficiency and less need for economies of scale. On the risk side, the weak
link remains the flawed security of cloud
storage, in other words the online data
management on which the digital revolution is based to a large extent. Another area
of concern is Europe’s place in standardisation and consequently in the patent race.
In addition, “security and data protection
issues have not been resolved yet,” pointed
out Renda. Yet Industry 4.0 is based on
data exploitation: companies are already
offering to install public lighting in municipalities at no charge in exchange for free
access to traffic data. “In general, if you get
something for free, it means that you are
the product, not the customer,” he said,
citing a fellow researcher.
The
German
industrial
policy
announced by Chancellor Angela Merkel
at the global digital trade fair, on 15
March in Hanover, reflects these hopes
and concerns. One of her top priorities is
to make Germany the champion of cyber
security and connected cars. A bill is set to
be tabled in September to this end and a
motorway section will be built to test these
cars, she announced. The industry may
invest €140 billion in digital technology
and connected systems by 2020, shows a
survey of 235 German business leaders,
published by PwC and Strategy&, at the
CeBit fair in Hanover.
“Germany is clearly playing the card
of smart specialisation,” added Renda,
but “this strategy will work only if there
are continental-scale economies”. The
digital strategy that the European Commission has announced for May will
build on the development of broadband,
e-commerce and copyright, but does not
address industry. Digital Economy Commissioner Günther Oettinger has nevertheless announced on his blog that he will
be presenting “more details” on a strategy
for “digitalising European industry” at the
Hanover fair (13-17 April). n
Budget for school fruit and veg
scheme in 2015-2016 approved
on ice following continued disagreement
between member states.
“If it’s free, that means
you are the product, not
the customer”
In brief
Digital economy: Dedicated task
force at DG Competition
In conjunction with its digital strategy, to be
unveiled on 6 May, one of its focus areas for
boosting growth, the European Commission
has shored up its teams at DirectorateGeneral Competition for this sector.
This seems consistent with the campaign
announcements of Commission President
Jean-Claude Juncker, who promised that
profits could rise by €500 billion over
five years through reform of the telecoms
industry in Europe. With what instruments?
“By breaking down national regulatory silos
for copyright, data protection, frequencies
and competition.” All this is being put in
place and competition is a powerful weapon
for bringing into line economic operators
that do not play by the rules. Google can
certainly confirm that, along with the
telecoms operators who thought they could
merge at will: the Commission is forcing
more concessions on them than any other
regulator in the world.
The national representatives at the
Management Committee gave the green
light, on 17 March, to a €150 million budget
for the school fruit and vegetables scheme
in 2015-2016 as proposed by the European
Commission. These funds allocated to
25 member states (Sweden, Finland and
the United Kingdom have opted out) will
be supplemented by national or private
co-funding worth roughly €32 million,
according to the Commission. Established
in 2009, the scheme is aimed at reversing
the trend of declining fruit and vegetable
consumption by specifically addressing
children. The largest national allocation
of over €27 million will go to Germany,
followed by Italy (over €26 million) and
Poland (over €18 million). The scheme has
been under review since January 2014, when
the Barroso Commission proposed to merge
it with the school milk programme. The
Juncker Commission has put the proposal
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GE-Alstom: Commission agrees to
postpone its decision
General Electric (GE) obtained a few
weeks’ delay to try to convince the European
Commission that its merger with French
firm Alstom in the energy sector will not
undermine competition in the EU. On
23 February, the EU executive opened
an in-depth investigation to look into
the consequences of this €12.4 billion
transaction. The Commission announced
at the time that it would hand down its
decision by 8 July. That time limit seemed
a bit short to the American conglomerate,
which perhaps out of excess confidence did
not propose any concessions. “We agreed
with the Commission a 20-day extension
of phase two of the probe. We are holding
a constructive dialogue with it and are
continuing to work on a positive outcome,”
said a GE spokesman.
www.europolitics.info
8
Thursday 19 March 2015 N° 5054 EUROPOLITICS
Should transport policy objectives be reconsidered?
By Isabelle Smets
The Commission and MEPs launch
reflection on the revision of the
transport white paper
In the coming months there will be
a lot of discussion of the overall aims of
the EU’s transport policy. The European
Commission has launched a large-scale
assessment of the 2011 white paper. A
public consultation will run until 2 June
and a report on its implementation will
be published by the end of the year. In
parallel, Wim van de Camp (EPP, Netherlands) is drafting an own-initiative
report set to be debated by the Committee on Transport (TRAN) on 14 April.
Adoption in plenary is scheduled in July.
What can be expected from this exercise? Olivier Onidi, director at DG
MOVE, was clear in his remarks to TRAN
on 17 March: “We certainly don’t want
to reinvent the whole setting”. The Commission is primarily intent on “consolidating what exists” rather than “going in too
many new directions”. Among the possible options are the social side and alternative fuels. “We would like to work further
on the quality of work” and “a more prominent social side in transport policy,” said
Onidi. On alternative fuels, he noted that
“progress is too slow and we need to do
much better”. This is in keeping with the
announcements made in the context of
the recent communication on the energy
union, since the Commission announces
in that document its intention to present an action plan on alternative fuels in
2017, matched with a communication on
the decarbonisation of transport.
WHAT ABOUT MEPs?
During
an
initial
discussion
in
TRAN, van de Camp made no secret of
his scepticism with regard to the modal
shift targets set in the current white
paper. The document sets the target of
a transfer of 30% of road freight to rail
and water routes for distances of over
300 kilometres by 2030 (50% for 2050).
This is meant to contribute to achieving the broader target of a 60% decrease
in carbon emissions from transport by
2050. At the time, the road and rail sectors – like MEPs – questioned the usefulness of setting such constraints. Van
de Camp is now suggesting that this
modal shift policy should be rethought.
Just what the Commission will do
with the results of the consultation and
the suggestions to be made in the EP
report is not yet clear. It “has not yet
decided what legal form this review [of
the white paper] will take,” said one of
its representatives. n
REAL CRIMES.
REAL VICTIMS.
REAL JUSTICE.
Eurojust supports EU Member States in bringing
cross-border criminals to swift justice
Eurojust combats:
• terrorism • cybercrime • drug trafficking • trafficking in human beings
• counterfeiting • money laundering • computer crime • online child abuse • fraud,
corruption and crime against property or public goods • criminal offences affecting
the EU’s financial interests • environmental crime • organised crime groups
We help bring criminals quickly and effectively to justice.
www.europolitics.info
eurojust.europa.eu
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9
EUROPOLITICS N° 5054 Thursday 19 March 2015
Climate: Debate over review of Hyogo framework
By Anne Eckstein
The international community is reluctant to commit to reducing the risk of
disasters
Five days after Cyclone Pam swept through
the archipelago of Vanuatu, in the SouthWest Pacific Ocean, representatives of 186
countries, who have been in talks since 14
March at the Third World Conference on
Disaster Reduction in Sendai, Japan, are still
struggling to agree on a review of the Hyogo
Framework for Action on building resilience
to natural disasters - with developed countries showing very little commitment. These
unexpectedly long, drawn-out discussions do
not bode well for future negotiations in 2015,
such as those on financing for international
aid, sustainable development and climate
change goals – which are all interlinked. Discussions were particularly blocked when it
came to measures and financing mechanisms
for international cooperation to implement
risk management policies for disasters. However, initiatives have been put on the table,
such as the programme to reduce climactic
and natural disasters in the South-West region
of the Indian Ocean, developed by the Indian
Ocean Commission (IOC) with financial
support from the EU, and the expertise of
the UN Office for Disaster Risk Reduction
(UNISDR). “The negotiations have been
disappointing. States have not managed to
reach a consensus […] and for the moment
no 2015-2030 framework has been approved.
We are calling on states to make a concrete
commitment to implementing actions to support the countries and populations which are
most vulnerable to natural disasters,” said the
NGO Action Against Hunger. n
Mogherini to visit China in May
By Sébastien Falletti in Shanghai
The
high
representative
will
attend the celebration of the 40th
anniversary of EU-China relations
The timing will be highly symbolic: on the
eve of Europe Day and the anniversary of the
end of World War Two, Federica Mogherini
will celebrate in Beijing the 40th anniversary
of the establishment of diplomatic relations
between the EU and China. The high representative for foreign affairs and security policy
will make her first visit to China between 5
and 8 May, diplomatic sources in Beijing told
Europolitics. After her visit to Washington in
January, Mogherini will pay a ‘get to know
each other’ visit to the leaders of the word’s
second largest economy, also with the aim
of preparing an upcoming key international
rendez-vous. She is expected to meet Foreign
Minister Wang Yi and possibly other top leaders of the Chinese Communist Party (CCP).
The 40th anniversary celebrations will offer
an ideal opportunity for the EU to draw closer
to China at a time when President Xi Jinping
is asserting himself on the world stage. Faced
with a slowdown of its economy, China is
also eager to strengthen ties with its number
one trading partner. Mogherini will raise the
sensitive issue of human rights, against the
backdrop of a fresh crackdown in Beijing on
freedom of expression and growing online
censorship.
The visit will offer an opportunity to prepare
the upcoming China-EU summit, scheduled
in June in Brussels, the first since the Juncker
Commission took office. Mogherini will also
have a chance to test China’s determination
to conclude an ambitious deal during the climate negotiations less than six month before
the crucial Paris deadline. The high representative prepare the visits this autumn to Beijing
of several key commissioners, according to
diplomatic sources. n
In brief
Blockupy protest turns violent in Frankfurt
Approximately 6,000 people took to the streets early on 18 March in
Frankfurt am Main in an attempt to disrupt the official inauguration of
the European Central Bank’s new premises. The demonstration, which
turned violent during the day, caused severe traffic disruptions. The
protesters, representing various leftist associations and political parties from
all over the EU, gathered under the flag of the civil movement Blockupy
to denounce austerity. “There’s no reason to celebrate when so many
European citizens are unemployed and living in poverty,” said a Blockupy
spokesman referring to the ongoing ceremony in the ECB. Alarmed by the
announcement of the manifestation, the ECB quickly scaled the ceremony
down citing a “threat to security”.
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www.europolitics.info
10
Thursday 19 March 2015 N° 5054 EUROPOLITICS
In brief
TTIP: EU leaders reiterate call to
conclude talks in 2015
The ongoing EU-US negotiations on
the Transatlantic Trade and Investment
Partnership (TTIP) will top the agenda
of the economic part of the European
Council meeting on 19-20 March in
Brussels. The latest draft conclusions,
dated 16 March, include a call by the
EU’s leaders for the conclusion of the
talks by the end of the year. A similar
statement was included in the previous
summit conclusions agreed on 18
December 2014. The leaders insist that
“every effort” should be made to reach an
“ambitious, comprehensive and mutually
beneficial agreement”. They also call
on the Commission and the member
states to step up efforts to communicate
the benefits of a future agreement and
to enhance dialogue with civil society.
Following one-and-a-half year of
negotiations, the two teams are gradually
moving from technical discussions to
drafting common positions.
Insurance rules: Amendments in
sight this year
The European Commission intends
to amend the delegated act (technical
rules) clarifying prudential rules for
insurers (Aolvency II) this year in order
to encourage insurers to participate
in European long-term investment
funds (ELTIFs). As stated in the
regulation that established these funds,
which will probably be published
in the Official Journal of the EU in
May, the goal is to amend prudential
www.europolitics.info
requirements. “Of course we will be
vigilant that the ‘favourable treatment’
is not exaggerated with respect to the
risk – even the best-framed long-term
investment fund legislation cannot
remove the risk completely,” said
Sven Giegold (Greens, Germany),
who is critical of the proposal to relax
prudential requirments for insurers
investing in high-quality securitisation.
The Commission also intends to amend
the delegated act to provide insurers
with means of getting involved in
infrastructure projects, Commissioner
Jonathan Hill announced on 17 March,
after receiving a letter from the EP on
this matter in December 2014.
Cyber security: Incidents cost up
to 340 billion euro - ENISA
The global cost to companies and
citizens of disruptions and attacks on
information systems is estimated at
between €260 billion and €340 billion
annually, Udo Helmbrecht, director of
the European Union Agency for Network
and Information Security, ENISA), has
said. “The situation is getting worse,
with a 25% increase in incidents over
the last year,” he said during a hearing
at the EP’s Security and Defence
Subcommittee (SEDE). “Recent studies,
including ENISA’s, have shown that the
situation will get even worse if we do not
take determined action.” Helmbrecht’s
warning came at just the right time, just
before a technical meeting between
the European Parliament, Council and
Commission on 18 March. Subsequently,
official talks on the NIS directive will
resume. Helmbrecht recalled the work
ENISA has done so far (and what it could
achieve if it had the means): cooperating
with computer emergency response
teams (CERTs), organising exercises
and developing guidelines for reporting
telecoms incidents. These guidelines
could serve as an example for the other
networks under discussion within the
context of the future NIS directive,
Helmbrecht underlined.
Data agreement seen threatening
fundamental rights
National authorities are “very
concerned” over a general position
on data protection drawn up during
the Justice Council on 13 March.
The Article 29 Working Group (set up
under Article 29 of Directive 95/46/
EC), which brings together these
authorities, said in a statement that
measures on “further processing” of
data within the draft text contradict the
Charter of Fundamental Rights. Under
the current data protection directive,
further processing is only permitted
for compatible purpose, they recall.
The Council’s approach therefore
undermines the Community acquis
and dilutes protection for European
citizens, warns the group. This
position reflects Austria’s rebellion
against the draft text at the previous
meeting of the Justice Council.
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11
EUROPOLITICS N° 5054 Thursday 19 March 2015
EU agenda
Thursday 19 March
EUROPEAN
PARLIAMENT
participation of cultural experts and
sociologists, to debate the current and
future challenges of preserving cultural
heritage and its role in the region’s
development, including sustainable rural
tourism.
THE PRESIDENT’S DIARY
DELEGATION TO WEST BANK AND GAZA
17 - 19 March, West Bank/Gaza Palestine
Brussels
n09:00 - 18:0 European Council - Justus
Lipsus building
DELEGATIONS
76TH EU-TURKEY JOINT PARLIAMENTARY
COMMITTEE
19 - 20 March Ankara, Turkey
Manolis Kefalogiannis (EPP, EL), Chair of
the EP delegation to the EU-Turkey Joint
Parliamentary Committee (JPC) will lead
the EP delegation. The Committee will
focus on the state of play of the Accession
Negotiations with Turkey; the fight against
racism, xenophobia, Islamophobia,
and other forms of discrimination; the
freedom of the media; and combating
terrorism. Members will conclude with a
final working session on the Turkey-EU
customs union, free trade agreements, and
the Transatlantic Trade and Investment
Partnership.
SUBCOMMITTEE ON SECURITY AND
DEFENCE DELEGATION TO KIEV
18 – 20 March, Kiev, Ukraine
Anna Fotyga (ECR, UK), chair of the
Subcommittee on Security and Defence,
will lead the subcommittee’s delegation to
Kiev from 18 to 20 March. MEPs are set to
meet the Head of the EU Advisory Mission
and debate with political, military and
security authorities of Ukraine.
DELEGATION TO ALBARRACIN, SPAIN
17 – 19 March
A delegation of Culture and Education
Committee MEPs will go to Albarracin,
Spain. They will meet representatives of
local government and cultural institutions
in the region, and debate will focus on
its historic and cultural heritage. A series
of workshops is also planned, with the
Martina Anderson (GUE/NGL, IE), chair
of the EP Delegation for relations with the
Palestinian Legislative Council, will lead a
4 MEP strong delegation to the West Bank
and Gaza. MEPs have asked for the access
to Gaza to take stock of the destruction and
the current state of reconstruction there, in
cooperation with UNRWA.
DELEGATION TO WASHINGTON
16 - 20 March
An 11-strong delegation from the Civil
Liberties, Justice and Home Affairs
Committee, headed by Claude Moraes
(S&D, UK), will go to Washington D.C. to
obtain up-to-date information on the state
of play and progress in the US on major
issues such as data protection; the EU-US
«umbrella agreement» on data protection
for exchanges of personal data for law
enforcement purposes; electronic mass
surveillance and the current legislative work
by the US Congress on framing surveillance
activities the state of play on initiatives for
privacy reform (bill of rights) and related
issues (discussion on big data/open data);
Passenger Name Records (PNR) Safe
Harbour privacy principles (voluntary data
protection standards for non-EU companies
transferring EU citizens’ personal data to
the US); and measures taken by the US to
address concerns raised by Parliament and
the Commission as regards problems of
adequacy.
EUROLAT PARLIAMENTARY ASSEMBLY
COMMITTEE MEETINGS
16 - 19 March, Panamá City, Panamá
Ramón Jáuregui Atondo (S&D, ES),
Co-President of the Euro-Latin American
Parliamentary Assembly (Eurolat), will
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lead the 48 MEP strong EP delegation
at the meetings of Eurolat Parliamentary
Assembly to Panamá. The standing
committees will prepare the plenary
session, which will take place in Brussels
in June. TTIP and its consequences for
EU-Latin America relations; political
parties financing; links between drugs
trafficking, organised crime and
corruption; and the fight against poverty
will top the debates between MEPs and
their counterparts from Latin America
countries.
YEREVAN, ARMENIA
15 - 18 March, Yerevan, Armenia
A Delegation of 35 MEPs, chaired by Heidi
Hautala (Greens/EFA, FI) will attend
the 4th Ordinary Session of Euronest
Parliamentary Assembly. Implementation
of association agreements signed recently
between the EU and some of its Eastern
partners, common security threats, Russian
military agression in Ukraine and relations
with Belarus are among the issues to be
discussed during the assembly. MEPs and
MPs are likely to also adopt a message for
the upcoming Eastern Partnership Riga
summit.
COUNCIL
OF MINISTERS
INNOVATIVE PUBLIC SERVICES GROUP
(IPSG) AND HUMAN RESOURCES WORKING
GROUP (HRWG) OF THE EUROPEAN PUBLIC
ADMINISTRATION NETWORK (EUPAN)
19 – 20 March, Riga
NETWORK OF EU CONTACT POINTS FOR
TACKLING CROSS-BORDER VEHICLE
CRIME (CARPOL) WITHIN THE LAW
ENFORCEMENT WORKING PARTY (LEWP)
19 – 20 March, Riga
EUROPEAN MIGRATION NETWORK (EMN)
ANNUAL CONFERENCE
19 – 20 March, Riga
www.europolitics.info
12
Conference
CHRONIC DISEASES POSE A CHALLENGE
TO 21ST CENTURY EUROPE: PATIENT’S
PERSPECTIVE AND ECONOMIC ACTIVITY
19 – 20 March, Riga
VISIT OF THE COMMITTEE ON
CONSTITUTIONAL AFFAIRS (AFCO) OF THE
EUROPEAN PARLIAMENT
18 – 20 March, Riga
EUROPEAN
COMMISSION
TRAVEL AND VISITS
nPresident Jean-Claude Juncker hosts the
signing ceremony of the Joint Declaration
EU - Greenland – Denmark.
nPresident Jean-Claude Juncker and
Valdis Dombrovskis participate in the
Tripartite Social Summit for Growth and
Employment, Justus Lipsius building,
Brussels.
nFrans Timmermans receives Bohuslav
Sobotka, Prime Minister of the Czech
Republic.
nAndrus Ansip participates in the Lisbon
Council roundtable on Digital Single
Market, Residence Palace, Brussels.
nAndrus Ansip attends the ALDE Party
Pre-Summit Meeting, Brussels.
nAndrus Ansip receives Chris Painter, U.S.
Department of State Coordinator for Cyber
Issues.
nMaros Sefcovic participates in the
European Council Preparation meeting of
PES Heads of State, Brussels.
nMaros Sefcovic participates in a Round
Table on Energy Union organised by the
Danish Prime Minister Helle ThorningSchmidt, Brussels.
nMaros Sefcovic and Jyrki Katainen
receive Henk Kamp, Minister of Economic
Affairs of the Netherlands.
nValdis Dombrovskis and Jyrki Katainen
attend the ESBG Retail Banking
Conference in Hotel Royal Windsor,
Brussels.
nJyrki Katainen participates in the EESC
Plenary, and meets with Henri Malosse,
EESC President, Brussels.
nJyrki Katainen receives Richard Weber,
President, and Arnaldo Abruzzi, Secretary
General, of Eurochambers.
nGünther Oettinger in Germany: delivers
a keynote speech at DLM-Symposium,
www.europolitics.info
Thursday 19 March 2015 N° 5054 EUROPOLITICS
in Berlin; participates in VDA Technical
Congress, in Filderstadt.
nJohannes Hahn receives the SecretaryGeneral of Energy Charter, Urban Rusnák.
nCecilia Malmström attends the event
“Trade in the 21st Century: The challenge
of regulatory convergence”, organised by
Friends of Europe (Hotel Sofitel, Brussels).
nCecilia Malmström receives the
Vice-Chancellor of Austria, Reinhold
Mitterlehner.
nNeven Mimica attends the EU
FLEGT week (Forest Law Enforcement,
Governance and Trade), in Brussels.
nMiguel Arias Canete receives Phil Wynn
Owen, Member of European Court of
Auditors.
nKarmenu Vella receives the President
of the European Plastics Manufacturers
Association (PlasticsEurope), Patrick
Thomas.
nVytenis Andriukaitis delivers a speech at
the EU Health Policy Forum.
nVytenis Andriukaitis attends a meeting
with the European Public Health Alliance
and the European Chronic Disease
Alliance, Borchette Centre, Brussels.
nVytenis Andriukaitis attends conference
on sustainability of European Healthcare
Systems, Bibliotheque Solvay, Brussels.
nVytenis Andriukaitis on official visit to
Slovakia (19-20/03): meets the Minister
of Agriculture and Rural Development,
Ľubomír Jahnátek; meets the Minister of
Health, Viliam Cislák.
nPierre Moscovici receives a group of
students in Master of European Affairs at
Sciences-Po Paris.
nPhil Hogan in Helsinki and Rovaniemi,
Finland (19-20/03): meets with the Minister
of Agriculture of Finland, Petteri Orpo;
meets with Members of Parliament; meets
with stakeholders.
nVioleta Bulc in Austria: meets with
members of the Austrian Parliament
(Vienna); meets with various transport
ministers, regional governors and mayors
(Innsbruck); officially launches engineering
works at the main Brenner Base Tunnel
(Ahrental).
nTibor Navracsics receives Viktor Orban,
Prime Minister of Hungary.
nTibor Navracsics receives László Lovász,
President of the Hungarian Science
Academy.
nTibor Navracsics receives Jeno Szász,
President of the Hungarian Research
Institute for National Strategy.
nCorina Cretu is in Germany. With
NGO Transparency International she will
launch the Integrity Pacts Initiative. She
will then participate in the conference of
the German-Austrian Urban Network and
meet Federal Minister for Urban Affairs
and Environment, Barbara Hendricks,
and Berlin’s Senator for Urban Policy and
Environment, Andreas Geisel.
nMargrethe Vestager receives Siv Jensen,
Minister of Finance of Norway.
nCarlos Moedas receives Dr Miguel
Frasquilho, President of AIECP and Dr
Luigi Gambarella.
nCarlos Moedas receives Professor David
Nutt of the European Brain Council.
nCarlos Moedas receives Pavel Belobradek,
Czech Vice-Prime Minister.
COURT OF JUSTICE
09:30
Fifth Chamber
nOpinion C-398/13 P
Inuit Tapiriit Kanatami and Others v
Commission
09:30
Sixth Chamber
nJudgment C-182/14 P Intellectual
property
MEGA Brands International v Office for
Harmonisation in the Internal Market
09:30
Second Chamber
nJudgment C-286/13 P Competition
Dole Food and Dole Fresh Fruit Europe v
Commission
09:30
Fifth Chamber
nOpinion Joined cases C-25/14, C-26/14
Freedom to provide services
UNIS, Beaudout Père and Fils
09:30
Fourth Chamber
nOpinion C-87/14 Social policy
Commission v Ireland
09:30
Second Chamber
nOpinion C-153/14 Area of Freedom,
Security and Justice
K and A
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13
EUROPOLITICS N° 5054 Thursday 19 March 2015
09:30
Second Chamber
11:00
Seventh Chamber
nHearing C-168/14 Freedom of
establishment
Grupo Itevelesa and Others
nHearing T-426/13 Intellectual property
L’Oréal v OHMI - Cosmetica Cabinas
(Ainhoa)
09:30
Fourth Chamber
14:30
Fifth Chamber
nHearing C-174/14 Taxation
Saudacor
nHearing T-541/13 State aid
Abertis Telecom and Retevisión I v
Commission
09:30
First Chamber
nHearing C-216/14 Area of Freedom,
Security and Justice
Covaci
09:30
Fifth Chamber
nJudgment C-266/13 Social security for
migrant workers
Kik
09:30
Fourth Chamber
nJudgment C-510/13 Approximation of
laws
E.ON Földgáz Trade
09:30
Sixth Chamber
nJudgment C-672/13 State aid
OTP Bank
GENERAL COURT
09:30
First Chamber
nHearing T-62/11 Competition
Air France - KLM v Commission
09:30
Seventh Chamber
nHearing T-400/13 Intellectual property
L’Oréal v OHMI - Cosmetica Cabinas
(Ainhoa)
09:30
Seventh Chamber
nJudgment T-412/13 Commercial policy
Chin Haur Indonesia v Council
09:30
Seventh Chamber
nJudgment T-413/13 Commercial policy
City Cycle Industries v Council
15:00
First Chamber
nHearing T-63/11 Competition
Air France v Commission
ECONOMIC AND
SOCIAL COMMITTEE
PLENARY SESSION
18 – 19 March, Brussels
-Frans Timmermans, 1st Vice-President of
the European Commission, in charge of
coordinating the work on better regulation
and interinstitutional relations, rule of law
and the Charter of Fundamental Rights
will present the Commission’s program
“Better regulation” and the state of
interinstitutional cooperation.
-This presentation will be followed by a
debate on the Opinion “Investment Plan
for Europe”, with the participation of Jyrki
Katainen, Vice-President of the European
Commission in charge of Jobs, Growth,
Investment and Competitiveness.
CONFERENCES
AND SEMINARS
REGULATION AND GROWTH
24 March, Brussels
The Council of the Notariats of the
European Union hold a conference jointly
with the Robert Schuman Foundation
on “Regulation and Growth”. The event
will involve two panel discussions on the
following topics “Does regulation serve to
increase growth?” and “How to regulate
effectively?”. The conference will take
place at the Representation of the State of
Baden-Württemberg (60-62 rue Belliard,
1040 Brussels) from 17.15 to 19.40.
Interpretation will be available in English,
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French and German. A cocktail reception
will follow the debates.
Registration open and free. Contact the
CNUE Office [email protected].
THE FUTURE OF THE REGULATION ON
ACCESS AND INTERCONNECTION
25 March, Brussels
If the European Commission’s Digital
Single Market proposal includes a review
of the 2009 regulatory framework for
electronic communications, one key
area to address will be the economic
regulation of access and interconnection.
The forthcoming BITS (Brussels Internet
& Telecom Seminar) will challenge the
Significant Market Power approach in light
of the significant market developments
since 2009, examining alternative
approaches with policy makers, academics
and industry players.
Organiser: The universities of Namur
and Leuven, in cooperation with Cullen
International
2ND ANNUAL EUROPEAN DATA ECONOMY
CONFERENCE
25 March, Brussels
Big Data, as we have come to know it, is
set to be a key driver for productivity and
growth globally, fostering new industries
and products and creating significant
competitive advantages for those harnessing
its potential. This conference will explore
the benefits that data and data analytics can
bring to European businesses, the public
sector and for wider society, if fostered
appropriately. This debate will also be
an opportunity to review the European
Commission’s communication “Towards a
Thriving Data-Driven Economy” and ask
to what extent the European regulatory
framework will help foster the development
of a Big Data ecosystem in Europe.
Sessions at the event will cover:
•Maximising the opportunities offered by
Big Data
•What does data innovation look like?
•Protecting user data – the obligations on
business to keep user data safe
•The European regulatory environment –
will it hurt or help data innovation?
Information: Anne-Lise Simon at anne-lise.
[email protected] / 0044 (0) 2920
783 023 Venue : Crowne Plaza le Palace,
Brussels
Registration: www.bigdata-conference.eu
www.europolitics.info