EU to block foreign investments

In February 2017, three Member States (France, Germany and Italy) sent a letter to the European Commission demanding greater EU powers to control, and if necessary block, third country takeovers. This because many European companies face restriction to buy foreign companies. But this is not the case with foreign firms. On the contrary, they are increasingly buying European firms, in key strategic sectors.

In the recent European Summit, Member States welcomed the European Commission’s proposal to analyse investments from third countries in key and sensitive sectors. Overall, Member States support the European Commission to have some role in screening investments. Yet Member States oppose giving the European Commission veto powers. Member States wish to retain the power to assess and protect key sectors.

The EU is determined to improve further the framework to control strategic investments. We expect further details in the field of foreign investments in September. Further information will emerge on what the EU mechanism would entail and how it would work in practice, next to the national screening competences.

EU considers food labelling

Back in 2008, the European Commission issued a proposal for legislation on providing food information to consumers. The proposal was approved. It included food labelling rules and nutritional information. But Members of the European Parliament rejected a mandatory system that would have labelled food based on the traffic light system.

The idea is now gaining momentum once again. Under the rumoured initiative, producers would have to adopt red, orange or green labels based on the quantity of specific nutrients. Several Member States and numerous Member of the European Parliament wish to adopt the traffic light system. They believe the scheme is quick and efficient and it would allow consumers to make healthier choices.

This is one of the initiatives that is set to come about. Overall, the EU institutions and the Member States have put the focus on junk food. The European Commission and EU countries are not satisfied with the self-regulatory approach of the industry. The EU institutions and the Member States are set to embark on stricter rules against advertising, marketing and sponsorship of foods, which would be of compulsory nature and not simply voluntary.

EU bans pesticides

On June 14, the European Parliament decided to support the European Commission’s proposal for an outright ban on the use of pesticides in nature conservation areas. Under the new rules, farmers will no longer be allowed to use pesticides in areas that have been determined to have an ecological focus. Member States will decide what are the areas of ecological focus based on a common EU definition.
The ban was barely approved despite the opposition of the agriculture committee in the European Parliament. This was a tense and closely fought vote. And an indication of what is to come in the upcoming negotiations on agriculture policy.

We expect other committees will be more vocal in the political process that will accompany the agriculture review especially considering the weight of agriculture in the budget of the EU.

EU to reduce the use of microplastics

Following the Circular Economy Package, the European Commission is also working towards an over-arching strategy on plastics. In that framework, it is also considering legislation that is aimed at reducing microplastics that are emitted by various products at the end of their lifecycle, or during production and transport.

Bans on the use of microplastics in specific products are already in place in the US. Canada has also added certain microplastics to the list of toxic substances. As a result, they are now banned.

The European Commission is currently expecting the outcome of two commissioned studies on the effects of microplastics entering the waters before coming up with new rules or a ban. The studies will assess, among other things, aquatic, biodiversity and human health effects. The European Commission is set to address both unintentionally emitted microplastics, as well as microplastics intentionally added to products.

A final report will be presented in November with the findings of the studies, and the collected input from the stakeholders. The deadline for expert contributions is October 16, 2017. The report will be the basis for the new legislative action.

Alber & Geiger Among Best Lawyers in Benelux

Alber & Geiger is proud to announce that the firm was recognized again in 2017 by The Lawyer European Awards for its excellence across the European legal market. Alber & Geiger was shortlisted as Law Firm of the Year in the Benelux. This follows on an earlier recognition by the prestigious European Public Affairs Awards (EuroPAwards). Alber & Geiger was nominated in four different categories and Andreas Geiger was handed the Best Lobbyists award for 2016.

Changes Coming to Firearm Regulations

Next to the proposal to amend the Firearms Directive, which focuses on possession, acquisition and transfer within the European Union, the European Commission is also set to embark on a revision of the Firearms Regulation.

The revision will affect firearms, their parts and components, as well as ammunition intended for civilian use. Moreover, the review is expected to address trade aspects and the transfer from or to a third country, including export procedures. The European Commission will also evaluate the performance of the Regulation, such as the current implementation levels. In addition, it will consider stepping up information sharing between responsible bodies.

Against this backdrop, all firearm producers and dealers, as well as importers and exporters of firearms should join the process now to shape the new rules.

Are Food Products Sold in Eastern Europe of Poor Quality?

There is now increasing pressure on the EU to tackle the highly contentious issue of big companies and supermarkets selling supposedly subpar versions of brand name foods in Eastern Europe. Previous reports and studies have pointed at the double standards and found that higher prices were being charged for products with lower quality ingredients. The food industry has denied the dual-quality claim and explained food differences as serving to consumer flavor and taste.

The European Commission has already picked up on the matter, which it labelled as an unfair trade practice. A body of national authorities responsible for consumer rights in Europe will convene to map out reported cases of double standards. A European Council meeting in June will review the progress of the issue.

New measures, as well as existing tools, are being considered to tackle the problem. For big food companies, it’s now more important than before to stay duly informed and have its own voice heard within those meetings.

EU Funding for Third Countries

Via the Multiannual Financial Framework (MFF), the European Union lays down the maximum annual amounts, which the European Union dedicates to a particular field over a certain period of time. The current projection covers the period 2014-2020. The MFF includes, among other things, all the external action of the European Union, which provides support to third countries abroad.

A review of the European Union’s foreign assistance will be presented to the Council of Minister and the European Parliament by the end of 2017. Until then, the European Commission will carry out numerous independent evaluations, which it will consider in future financial planning and sectorial support in third countries.

Third countries, NGOs and private sector organization, including developments banks should take part in the evaluation to shape future financial instruments.

Reconsidering Technology’s Role in Consumer Product Liability

The European Union is assessing whether the existing directive dealing with producer liability for defective products is still fit-for-purpose. The current directive guarantees the liability of the producer in the event of damage caused by malfunctioning products. In addition, it sets common rules for liability and offers consumers an opportunity to claim financial compensation.

The European Commission is considering an amendment to address new technological developments. Moreover, they European Commission will assess whether the existing directive meets the objective of guaranteeing liability at EU level. Last, the European Commission will collect stakeholder views to find out if the directive meets their expectations.

Considering the above, producers and insurers as well as business representatives should join the ongoing discussions.

Alcohol Industry Asked to List Ingredients & Nutrition Information

The European Commission recently presented its proposal on mandatory labeling of the list of the ingredients and the nutrition declaration of alcohol beverages. Currently, the alcohol industry was not required to provide ingredients and nutrition information. This was in stark contrast to other foods, which had to provide labelling information.

The European Commission has now given the alcohol industry 1-year for a self-regulatory proposal to fill the information gap. The European Commission will consider regulation, should the industry fail to come up with the voluntary initiative. Similarly, the European Commission will launch an impact assessment should it not find suitable the industry proposal and consider both regulatory and non-regulatory options.

The spirits industry has thus 1-year to find an agreement that meets the expectation of the EU institutions. Otherwise, it could face further regulation.