Category: Allgemein

The EU Commission is finally set to move ahead with the implementation of its Digital Single Market Strategy that will improve access to digital goods and services, and maximize growth potential by creating a level playing field for digital networks and innovative services.

First step is the modernization of EU copyright rules as the Commission looks to regulate cross-border portability and access to copyright-protected services, remove geo-blocking from Community regulation, review VAT for electronic commerce and ensure free flow of data, all in early 2016. Furthermore, it will round up its revision list with its review of the Telecoms Regulatory Framework and the Audiovisual and Media Services Directive.

The complexity and the speed of development and change within the digital sector require a careful and foresighted approach that can only be guaranteed in cooperation with industry stakeholders.

The EU remains committed towards circular economy that would appease economic and environmental concerns and transform Europe into a more competitive and resource-efficient economy.

In that regard, the EU Commission is expected to adopt a new ambitious waste proposal in early 2016, which will review EU recycling and other waste-related targets on a long-term basis. Most notable changes that are to be implemented include 2030 recycling and re-use targets regarding municipal and packaging waste, as well as the pre-2025 phase-out of landfills for recyclable waste. In addition, the Commission will adopt a broad action plan and an effective progress monitoring mechanism to support the reform process.

These measures will greatly impact the industrial and broad-consumer sectors, especially the paper, plastic, wood and metal industry in the EU, as recycling and re-use targets are expected to be set at very ambitious levels.

The EU wants continue to affirm its position as global leader and spread its sphere of influence across the continents. Partnering with foreign nations in the field of trade and investment will remain the EU’s weapon of choice.

To that extent, the Commission plans to finalize TTIP negotiations with the US in 2016. Having the TPP finally out of the way, the two sides will intensify efforts to resolve their differences. However, the EU and the US still need to find a mutually acceptable solution regarding investment protection. In addition, the invalidated Safe Harbor clause threatens to become a major obstacle. With public opposition to TTIP in Europe continuing to rise, the talks are likely to remain uncertain and strenuous in midst of the ever-stronger political will.

As regards additional foreign policy priorities, the EU remains committed to creating an active engagement strategy with Asia and to concluding the comprehensive Post Cotonou Framework that will govern its relations with the ACP countries and regions.

The EU’s objective in the energy sector remains securing affordable and climate-friendly energy under the framework of an integrated energy market. To this end, the EU Commission just recently outlined its key action areas for 2016 – branding it the year of delivery.

First and foremost, the EU will adopt a new Regulation on security of electricity and gas supply, and will revise the corresponding regulation of inter-governmental agreements in this area. With focus on climate change, the EU must also review its renewable energy package, including criteria for biomass and energy efficiency, as well as integrate the Land Use, Land-Use Change and Forestry sector (LULUCF) into the 2030 climate framework, if it is to remain on course for the ambitious 40% emissions reduction target before year 2030.

The molding of these measures needs to be closely followed and assisted, as they have the potency to significantly boost or restrict the exchange of electricity and gas and distort the supply and prices of energy in Europe.

On 14 April 2016, the European Parliament (EP) voted in favour of setting up an inquiry committee to investigate the so-called Panama Papers.

The committee is expected to have the power to investigate all European clientele of tax havens in Latin America. In addition, the newly set up parliamentary committee will exacerbate the debate over a review of existing EU tax policies. It could even call on the Commission to initiate additional new legislation aimed at strengthening tax transparency.

Currently, the Commission is amending the Accounting Directive to impose rules aimed at fighting tax evasion by multinational corporations. Under the proposed amendment, every company operating in the EU with global revenues exceeding EUR 750 million per year shall publish the amount of tax it pays in each EU Member State, as well as provide additional information on its activities. Information will include, inter alia, the nature of its activity, the total net turnover, the profit before tax, the amount of income tax due in each country, the tax actually paid and the accumulated earnings.

All this may adversely affect the position of shareholders and statutory bodies, as well as future business operations of multinational companies operating in the EU. Individuals may be embroiled in the scandal and face reputation issues.

The Commission launched a public consultation on the evaluation and the possible changes to the current ePrivacy Directive. The ePrivacy Directive is a crucial piece of legislation setting-up specific rules concerning the processing of personal data in the electronic communication sector. Since its adoption in 2009, the electronic communications industry has been rapidly growing. Due to rapid technical growth in the past years, the discussion table will likely contain the security and confidentiality of communications, inconsistent fragmentation of legislation at national level and the enlargement of scope of the ePrivacy Directive. The feedback from the consultation will be used to prepare a new legislative proposal on ePrivacy, which is likely to be put forward by the Commission at the end of 2016. The review of the ePrivacy Directive would affect electronic communications network providers, providers of electronic communication services, Internet content providers and companies active in the area of security.

The Commission has now started to shape the European start-up policy by launching a public consultation on improving the environment for European start-ups and fast growing firms.

The ideas and thoughts during the consultation will be used to prepare new legislation. Future measures will cover businesses from the creation of a start-up until the Scale-up phase, when successful startup companies expand, and even until the Exit phase, which includes a successful sale of a business, or a merger with another business.

This is a unique opportunity for entrepreneurs and various industries to lobby for the creation of practical legal rules at both EU and Member State level to address start-ups and their needs throughout their life cycle.

It is now the ideal time for all those interested and affected to let their voice be heard and shape the future European start-up policy.

The consultations have already started, with the deadline set on 31 July 2016.

The Commission is considering possible restrictions on the use of peanut oil and hydrolysed wheat proteins (HWP) in cosmetic products.

In 2014, the Scientific Committee on Consumer Safety published two opinions raising scientific concerns on the use of peanut oil and hydrolysed wheat proteins in cosmetic products. According to the opinions, the exposure of skin to peanut proteins of peanut oil at certain level is deemed risky. Similar outcome was presented by the opinion with regard to HWPs.

The Commission has already prepared modifications to the Annex to the Cosmetics Regulation and opened public consultations thereon. The Commission proposes to restrict the maximum peanut protein level of peanut oil, its extracts and derivatives, in cosmetic products, as well as restrict the maximum molecular weight average of the peptides in hydrolysed wheat protein used in cosmetic products.

The above changes may have an enormous impact on cosmetic industry. In addition, the proposed implementation periods for changes to be implemented by the cosmetic industry proposed by the Commission are short (9 months for placing compliant products on the market and 12 months for withdrawing non-compliant products from the market).

The deadline to oppose the proposal in the public consultations is set on 1 July 2016.

On 19 April 2016, the Commission presented a set of measures to support and connect national initiatives for the digitization of industry and related services across all sectors. While many parts of the economy have quickly adapted to digital technologies due to expected higher revenues, some traditional sectors (such as agro-food, textiles or steel) are lagging behind in their digital transformation.

A common European approach is necessary not only to ensure application across all sectors, but also to avoid market fragmentation. The Commission proposes concrete measures that focus on 5 priority areas – 5G, cloud computing, Internet of things, data technologies and cyber security.

The adoption of new legislation shall support the free flow of data and clarify ownership of data generated by smart devices and various sensors. It is without saying the new legislation may significantly affect the data protection area, smooth procedures to access the digitization tools and costs for businesses.