A&G Newsletter Q2 2024

1. Commission Unveils Blueprint for Tomorrow’s Digital Infrastructures

The European Commission unveiled a comprehensive strategy aimed at enhancing the innovation, security, and resilience of Europe’s digital infrastructures, which are crucial for the continent’s economic competitiveness. This initiative emphasizes the necessity for robust, secure, and extensive digital connectivity to facilitate emerging technologies such as telemedicine, automated driving, and precision agriculture, which are essential for transitioning into the future.

At the heart of this strategy is a digital connectivity package designed to kickstart discussions among stakeholders, Member States, and allies on shaping future EU policies.

This includes a White Paper that delves into Europe’s current digital infrastructure challenges and outlines potential investment, innovation, security, and Digital Single Market strategies.

Additionally, a set of recommendations focuses on improving the security and resilience of submarine cable infrastructures through enhanced EU-wide coordination in governance and funding.

A key aspect of the proposal is the development of a “Connected Collaborative Computing” Network (“3C Network”) aimed at establishing comprehensive infrastructures for cloud and edge computing. This initiative intends to facilitate the development of innovative technologies and AI applications across various sectors through a collaborative approach, possibly through large-scale pilots or new significant EU projects.

The strategy also emphasizes the importance of synergizing existing initiatives, like the Next Generation Cloud Infrastructure and Services project, with funding programs such as the Connecting Europe Facility and Digital Europe. It suggests a potential coordinating role for the Smart Networks and Services Joint Undertaking (SNS JU) to foster a collaborative connectivity and computing ecosystem.

Furthermore, the EU aims to maximize the digital single market’s potential by advocating for a balanced competitive environment and reevaluating the regulatory framework to reflect the convergence of telecoms and cloud technologies. This might include harmonizing telecom operator authorizations, integrating spectrum governance at the EU level, revising wholesale access policies, accelerating the transition from copper networks, and promoting the environmental sustainability of digital networks.

To secure Europe’s network and computing infrastructure—an essential component of its economic security—the EU proposes incentivizing the development and bolstering the security and resilience of strategic submarine cable infrastructures. This includes the possibility of establishing a joint governance system and revising financial instruments to better support European Cable Projects.

In response to calls from Member States and stakeholders, the Commission aims to enhance EU coordination, assess and mitigate security risks, develop a Cable Security Toolbox, and streamline permit procedures for cable projects. An expert group on Submarine Cable Infrastructure will be established to oversee these efforts.

Concluding, the Commission has initiated a public consultation based on 12 scenarios presented in the White Paper, which will remain open until June 30, 2024. The feedback received will inform future policy actions.

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2. Support for EU Farmers: Targeted Review for Common Agricultural Policy Proposed

The European Commission has proposed revisions to the Common Agricultural Policy (CAP) to simplify regulations for EU farmers while ensuring the policy remains robust, sustainable, and competitive. These revisions, particularly concerning conditionality and CAP Strategic Plans, aim to alleviate control-related burdens on farmers, allowing for greater environmental compliance flexibility. Additionally, national administrations are to receive more leeway in applying standards.

This legislative proposal responds to numerous requests from farmers’ organizations and Member States, complementing ongoing efforts to lessen administrative loads for farmers. It endeavors to balance the need for sustainable agricultural transition, stakeholder expectations, and the desire for swift agreement among the European Parliament and Council. The proposal maintains environmental and climate ambitions within the CAP framework.

The Commission therefore proposes a targeted review of certain conditionalities in the Regulation on CAP Strategic Plans, such as GAEC 8 on non-productive features, GAEC 7 on crop rotation, and GAEC 6 on soil cover during sensitive periods.

Under the proposed changes to the CAP, EU farmers will be encouraged, but not required, to maintain non-productive areas like fallow land for biodiversity, with financial incentives offered through eco-schemes. The revisions will allow farmers more options in meeting crop rotation requirements, enabling them to choose between crop rotation and diversification based on their specific environmental conditions and challenges, such as drought or excessive rainfall. Additionally, member states will be granted greater discretion in determining sensitive periods for soil cover, adapting practices to suit regional climatic variability and conditions, thus offering tailored approaches to sustainable farming.

The Commission also proposed some exemptions. This includes targeted exemptions and potential derogations for adverse weather conditions, alongside a proposal to simplify amendments to CAP Strategic Plans and relieve small farms under 10 hectares from compliance-related controls and penalties.

Furthermore, the Commission proposes to enhance farmers’ positions within the food supply chain, introducing a production cost observatory, suggesting improvements to contract regulations and producer organizations, and contemplating new cross-border enforcement rules against unfair trading practices. An evaluation of the Directive on unfair trading practices is also planned, with the first report due in spring 2024. Another evaluation that legislative proposals could accompany is planned for 2025.

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3. Commission Proposes Measures against Counterfeiting and Intelectual Property Protection

The European Commission introduced a Recommendation known as the EU toolbox against counterfeiting to strengthen the fight against counterfeiting and enhance the enforcement of intellectual property rights (IPR) both online and offline. This initiative seeks to promote cooperation among rights holders, service providers, and law enforcement agencies, and to encourage the adoption of modern tools and best practices. It outlines strategic measures to protect companies’ intangible assets from counterfeiting and cyber-theft, including the use of the IP Enforcement Portal by the EU Intellectual Property Office (EUIPO) and the adoption of modern techniques to tackle new forms of counterfeiting.

The Recommendation suggests several key actions, such as establishing a unified contact point for IP enforcement, modernizing the Memorandum of Understanding on counterfeit goods online, and introducing dynamic injunctions to tackle mirror websites. It also promotes alternative dispute resolution for IP disputes, reviews sanctions for criminal IP offences, and supports market surveillance enhancements. Additionally, it aims to integrate IP education in training curricula and introduce IP practices tailored to AI and virtual worlds.

For SMEs, the Recommendation offers financial support through an “IP scan enforcement voucher” under the SME Fund, a Cybertheft Prevention Toolkit, and guidance on utilizing AI while protecting intangible assets. The Commission, in partnership with the EUIPO, will monitor the Recommendation’s implementation and evaluate its effectiveness in three years to determine the need for further EU-level measures.

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4. New Action Plan to Boost Biotech and Biomanufacturing in the EU

The European Commission has outlined a comprehensive plan to enhance biotechnology and biomanufacturing within the EU, as detailed in the Communication on Building the future with nature. This plan addresses various challenges and aims to align with the Communication on the EU’s long-term competitiveness, highlighting biotechnology’s potential to revolutionize sectors like agriculture, energy, and healthcare through advancements in life sciences, digitalization, and artificial intelligence (AI).

To overcome obstacles such as regulatory complexity and access to finance, the Commission proposes several actions including leveraging research, stimulating market demand for bio-based products, streamlining regulatory pathways for quicker market access, fostering investments, and enhancing biotech-related skills. Key initiatives include the development of the Industrial Biotechnology Innovation and Synthetic Biology Accelerator (EU IBISBA), exploring bio-based content requirements, establishing an EU Biotech Hub, promoting regulatory sandboxes, and advocating for specific challenges on biotech in the European Innovation Council (EIC) accelerator programme.

Furthermore, the Commission intends to support international cooperation, the use of AI in biotech, and review the EU Bioeconomy Strategy, emphasizing the sector’s role in achieving a more competitive, resilient EU capable of facing green and digital transitions.

The Commission will also review the EU Bioeconomy Strategy by end 2025.

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5. Commission Launches New Strategy on Carbon Capture and Climate Neutrality

The Commission’s newly adopted Industrial Carbon Management Communication outlines a strategy to reduce emissions by 90% by 2040 and achieve climate neutrality by 2050, proposing the development of at least 50 million tonnes per year of CO2 storage capacity by 2030, expanding to approximately 280 million tonnes by 2040. The plan includes preparatory work on a future CO2 transport and storage regulatory package, and strategies to scale up markets for CO2 capture and storage, including project permitting guidance and an atlas of potential storage sites.

The Commission will assess necessary volumes of CO2 removals, aiming to integrate these into the EU Emissions Trading System, and will work to establish a clear carbon accounting framework to encourage the use of captured CO2 in industrial processes. To foster an attractive investment environment for carbon management projects, the EU proposes promoting these projects through energy infrastructure programs, assessing funding mechanisms, and enhancing research and innovation, including through Horizon Europe and the Innovation Fund. Furthermore, the EU intends to engage in international cooperation to harmonize reporting and accounting for carbon management activities, ensuring that international carbon pricing frameworks account for removals in challenging sectors.

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A&G Newsletter Q1 2024

1. Commission to Expose Hidden Foreign Influence Through ‘Defence of Democracy’

The EU seeks transparency when third countries lobby to influence its democratic processes. The European Commission introduced a Defence of Democracy package before the 2024 European elections, focusing on a law to boost transparency and accountability in foreign interest representations. It also offers two recommendations to ensure elections are free and fair and to increase citizen and civil society engagement in policymaking. This initiative aims to tackle the threat of foreign interference and promote civic participation in democracy. According to a Eurobarometer survey, 81% of Europeans view foreign interference as a significant issue, highlighting the need for action against hidden foreign influence.

The proposal introduces uniform rules for higher transparency and accountability in such lobbying activities across the EU.

The proposal foresees the following transparency requirements:

  • Registration in a Transparency Register: entities lobbying for third countries must join a transparency register, with Member States creating or modifying their own registers accordingly.
  • Public access: key details of lobbying activities, like funding amounts, involved countries, and objectives, will be publicly accessible.
  • Record keeping: lobbyists must maintain records of their activities for four years post-completion.

The proposal sets fair rules to protect fundamental rights:

  • Independent supervisory authorities will be empowered to request limited records in duly justified cases only and in a proportionate manner;
  • Authorities need to ensure that registration does not lead to negative consequences
  • Possibility to derogate from the publicity of information in duly justified cases;
  • It standardizes rules across the EU, preventing extra requirements by Member States.
  • The Commission aims to establish global norms for managing foreign influence, respecting fundamental rights.

The Commission looks forwards for the European Parliament and Council to swiftly advance legislative proposals in democracy before the European parliamentary elections and calls for broad support from national entities to implement the European Democracy Action Plan and the Defence of Democracy package. Ahead of the 2024 European elections, the Commission will enhance dialogues and partnerships with online platforms and signatories of the Disinformation Code, focusing on transparent political ads and tackling AI-driven disinformation. This effort aims to safeguard the integrity of elections and combat disinformation effectively.

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2. Commission Proposes Streamlined ‘One Substance, One Assessment’ Chemicals Reform

The European Commission is introducing three law proposals to make chemical safety checks more consistent and efficient across the EU. This plan, known as the “one substance, one assessment” package, is part of a broader Chemicals Strategy aiming to protect health and the environment better. The plan involves redistributing responsibilities among four EU agencies to ensure clear and unified assessments of chemicals found in everyday items like medical devices, toys, pesticides, and foods.

The benefits of these changes include easier access to information about chemicals for everyone, more uniform processes, and quicker decisions on chemical risks. This means that once a potential hazard is identified, steps can be taken more swiftly to address it, leading to improved safety for people and the environment.

The proposals aim to:

  • Enhance collaboration and consolidate scientific and technical work on chemicals in the European Chemicals Agency, the European Food Safety Authority, the European Environment Agency and the European Medicines Agency. This effort aims to make assessments more consistent and allow for the reuse of data across different regulations.
  • Create a Common Data Platform, and introduce a ‘one-stop shop’ access to data on chemicals.
  • It will include data on hazards, physico-chemical properties, presence in the environment, emissions, uses, environmental sustainability of chemical substances and on ongoing regulatory processes. This platform will incorporate existing platforms such as the Information Platform on Chemical Monitoring (IPCHEM), the Public Activities Coordination Tool (PACT), and the EU chemicals legislation finder (EUCLEF).
  • It will broaden their coverage to nearly all EU chemical laws, adding new tools and databases, such as a repository of human and environmental values.
  • Set up a system to collect data on chemicals in people (like in blood or breast milk) across the EU, helping estimate citizens’ chemical exposure.
  • Create a framework to quickly detect, identify and prevent widespread chemical risks, like PFAS. This system will allow rapid response and track the effects of regulatory measures on chemicals.
  • Empower the European Chemicals Agency to generate data when needed.
  • Guarantee transparency of scientific studies on chemicals, including those contracted by businesses.

These proposals are now waiting for further examination and approval by the European Parliament and the Council.

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3. New Measures to Enhance Access to In Vitro Diagnostics Proposed

The European Commission plans to extend the deadline for companies to comply with the In Vitro Diagnostic Medical Devices Regulation (IVDR), given certain criteria. This move is designed to boost patient care by increasing the accessibility of crucial healthcare devices. Moreover, the Commission plans to boost Medical Device sector transparency, including hastening certain aspects of the European Database on Medical Devices – EUDAMED.

In vitro diagnostics (IVDs) like HIV, pregnancy, and COVID-19 tests are crucial for health assessments, necessitating the EU’s updated regulatory framework since May 2022 to ensure their safety and effectiveness. Despite this, many IVDs in the market still do not meet these new standards, particularly high-risk devices critical for blood and organ donation testing. To address this, the European Commission proposes extending compliance deadlines to facilitate the transition without sacrificing safety, recognizing the impact on small and medium-sized enterprises (SMEs) that produce these devices. The extension varies by device risk, with high-risk devices (class D) until December 2027, significant risk devices (class C) until December 2028, and lower risk devices (class B and A) until December 2029. Additionally, manufacturers must notify of potential supply interruptions to ensure patient care continuity.

The Commission also aims to enhance medical device transparency through the early mandatory use of the European Database on Medical Devices (EUDAMED) by late 2025, offering a comprehensive view of EU market devices. This initiative, pending approval from the European Parliament and Council, includes a forthcoming evaluation in 2024 to assess the legislation’s impact on device availability, focusing on specific needs and the burden on SMEs.

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4. Commission Unveils AI Package to Support AI Startups and SMEs

The Commission has introduced a support package aimed at European startups and SMEs to foster the development of trustworthy AI, aligning with EU values and the pioneering EU AI Act. This act, agreed upon in December 2023, promotes the use and development of reliable AI across Europe. Following President von der Leyen’s 2023 address, the initiative grants innovative AI startups access to Europe’s supercomputers to develop their AI models. Launching with the Large AI Grand Challenge in November 2023, offering financial and supercomputing support, this package includes measures like privileged supercomputer access for AI startups and innovators, to bolster AI innovation and startup growth.

The proposal includes:
An amendment of the EuroHPC Regulation to set up AI Factories, a new pillar for the EU’s supercomputers Joint Undertaking activities. This includes:

  • Acquiring, upgrading and operating AI-dedicated supercomputers to allow fast machine learning and training of large General Purpose AI (GPAI) models;
  • Enabling access to the AI dedicated supercomputers, contributing to the widening of the use of AI to a large number of public and private users, including startups and SMEs;
  • Offering a one-stop shop for startups and innovators, supporting the AI startup and research ecosystem in algorithmic development, testing evaluation and validation of large-scale AI models, providing supercomputer-friendly programming facilities and other AI enabling services;
  • Enabling the development of a variety of emerging AI applications based on General Purpose AI models.
    The Commission plans to create an AI Office to oversee AI policy development and coordination across Europe, and to monitor the implementation and enforcement of the upcoming AI Act.

The EU outlines key activities for AI Start-Up and Innovation:

  • Financial backing through Horizon Europe and Digital Europe for generative AI, aiming for €4 billion in investments by 2027.
  • Initiatives to enhance the EU’s generative AI talent through education and training.
  • Support for AI start-ups and scale-ups with public and private funding, including venture capital and the EIC accelerator Programme and InvestEU.
  • Speeding up the creation and use of Common European Data Spaces for the AI community to train and refine models. A new report on these data spaces offers the latest developments.
  • Launching ‘GenAI4EU’ to foster new use cases and applications in 14 industrial and public sectors, covering robotics, health, and more.

The Commission, along with several Member States, is setting up two European Digital Infrastructure Consortiums (EDICs):

The ‘Alliance for Language Technologies’ (ALT-EDIC) focuses on creating a shared European infrastructure for language technologies. Its goal is to overcome the lack of data for European languages needed to train AI, promoting linguistic diversity and cultural richness, and aiding in the development of large European language models.

The ‘CitiVERSE’ EDIC will utilize advanced AI tools to improve Local Digital Twins for Smart Communities. This effort aims to assist cities in simulating and optimizing various processes, including traffic and waste management.

In the AI@EC Communication, the Commission outlines its strategic approach to the use of AI, anticipating and preparing internally for the implementation of the EU AI Act.

The European Parliament and the Council will now consider the Commission’s proposed amendments on the Regulation establishing the European High Performance Computing Joint Undertaking.

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5. A European Citizens’ Initiative on Cannabis Got Partially Registered

The Commission has partially approved the ‘European Cannabis Initiative,’ a European Citizens’ Initiative (ECI). The organizers of the initiative proposed three main objectives:

  • To urge the Commission to convene a trans-European citizens’ assembly on cannabis policy, including sanctions and the coherence of member states’ policies.
  • To encourage the Commission to promote access to medical cannabis and facilitate the transport of cannabis and its derivatives prescribed for therapeutic purposes, thereby ensuring the unrestricted exercise of the right to health.
  • To request the Commission provide the necessary resources for researching cannabis for its therapeutic purposes.

The Commission registered only the second and the third objectives. Meanwhile, the request to organize a trans-European assembly on cannabis policy was not registered, as it exceeds the Commission’s authority for legal action. At this point, the Commission has not evaluated the content of the proposals; the registration solely reflects a legal judgment and does not imply the Commission’s final stance or planned actions.

The organizers now have six months to start collecting signatures. If the initiative gathers one million endorsements from at least seven Member States within a year, the Commission must respond, detailing whether it will act on the proposals and the reasons for its decision.

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6. New Rules on Animal Welfare regarding Transport, Home Pets, and Fur Farms

The Commission announced a significant overhaul of EU animal welfare regulations, marking the largest reform in 20 years. This includes introducing, for the first time, regulations for the welfare and traceability of dogs and cats bred, kept, and sold for economic reasons. The reform is in line with the Farm to Fork Strategy part of the European Green Deal for sustainable agriculture and food production.

The reform aims to enhance the welfare of the 1.6 billion animals transported annually within and from the EU, incorporating the latest scientific, technological advances. New standards will set uniform EU requirements for breeding, housing, and managing dogs and cats in various facilities, alongside mandatory identification and registration for these animals to combat illegal trade and improve welfare standards.

Additionally, the Commission is taking steps in response to the ‘Fur Free Europe’ European Citizens’ Initiative, advocating for a ban on fur farming and the sale of fur products in the Single Market, reflecting the ongoing public concern over animal welfare.

Better rules for the transport of animals:
The rules on animal transport are 20 years old. The new rules focus on key areas to guarantee animal welfare in transport:

  • Shorter travel times, access to rest, water and feeding, and special rules for vulnerable animals
  • Allowances to ensure minimum space for the different animals
  • Transport in extreme temperatures will be subject to strict conditions
  • Tightened rules for the exports of live animals from the Union
  • Digital tools to facilitate the enforcement of transport rules

Better welfare for dogs and cats:
The proposal introduces uniform EU standards for the welfare of dogs and cats in breeding establishments, pet shops, and shelters, without imposing new regulations on citizens and pet owners.

Reply to the European citizens’ initiative ‘Fur Free Europe’:
The Commission also responded to a European Citizens’ Initiative “Fur Free Europe”. The Commission has requested EFSA to assess the welfare of fur-farmed animals scientifically. Based on this review and an evaluation of economic and social effects, the Commission will decide on the most suitable course of action.

The legislative proposals will be presented to the European Parliament and the Council. Regarding the European Citizens’ Initiative, EFSA will start its scientific evaluation at the Commission’s request and is expected to provide its findings by March 2025.

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A&G Newsletter Q4 2023

1. Commission Proposes Initiatives to Curb Microplastic Pollution from Plastic Pellets

For the first time, the European Commission is proposing measures to combat microplastic pollution caused by unintentional plastic pellet releases. Annually, 52 to 184 thousand tonnes of pellets are inadvertently released into the environment, often due to mishandling across the supply chain. The new proposal mandates that all EU operators handling pellets adopt preventive measures, aiming to slash pellet release by up to 74%. This significant reduction is expected to lead to cleaner ecosystems, contribute to plastic-free rivers and oceans, and minimize health risks.

The Commission suggests a three-step approach: prevent spills, contain any accidental releases, and clean up post-spill.

Key Aspects of the Proposal:

  • Implementation of Best Practices: Operators are required to follow best handling practices, already in use by industry leaders, scaled according to the size of the operation or transport activity.
  • Mandatory Certification and Self-Declarations: Larger companies must acquire certification from independent third parties, while smaller businesses should self-declare their compliance, aiding authorities in enforcing regulations.
  • Harmonized Loss Estimation Methodology: A standardized method, developed by standardization bodies, will be introduced to monitor losses. This methodology aims to improve environmental and health awareness and accountability.
  • Simplified Requirements for SMEs: Recognizing the substantial presence of SMEs in the pellet supply chain, the proposal includes more manageable requirements for micro and small operators.

Next Steps:

The proposed Regulation on preventing pellet losses will be discussed by the European Parliament and the Council. It requires all operators, including non-EU entities, to adhere to these regulations within 18 months of their enactment.

In its ongoing efforts to curb microplastics pollution, the Commission will continue to develop and implement relevant legislation concerning products and waste. It also remains committed to leading international efforts in ending plastic pollution.

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2.  EU Proposes Blueprint for Critical Infrastructure to Enhance Response to Cross-Border Disruptions

The European Commission has put forward a Council Recommendation for a Critical Infrastructure Blueprint, aiming to strengthen the EU’s coordinated response to threats and disruptions targeting critical infrastructure. This proposal comes amid a highly volatile geopolitical climate, highlighted by Russia’s war against Ukraine, increased hybrid attacks, and the sabotage of the Nord Stream gas pipelines. Critical infrastructure is essential in the EU, as it underpins vital societal functions and ensures the seamless provision of crucial services.

The EU has already implemented measures to safeguard critical infrastructure and minimize the impact of service disruptions. Following the Nord Stream pipeline incident, the Commission recommended accelerating protective measures and enhancing incident response coordination through this Blueprint. The EU-NATO Task Force on infrastructure resilience, established in March 2023, also contributed by identifying current security challenges and offering recommendations to strengthen resilience. This proposal builds on those initiatives, complementing existing EU crisis management tools, cybersecurity measures, and protocols against hybrid threats.

Objectives of the Critical Infrastructure Blueprint:

The Blueprint provides a structured approach for managing significant critical infrastructure incidents, focusing on three primary goals:
Enhanced Situational Awareness: To better understand the nature, origin, and potential impacts of significant incidents on both operational and strategic/political levels across Member States.
Coordinated Public Communication: To ensure consistent messaging post-incident, which is crucial for countering misinformation and maintaining public trust.
Effective Response: By reinforcing Member States’ responses and promoting cooperation within the EU, the Blueprint seeks to mitigate incident effects and swiftly restore essential services.

Application and Actions:

The Blueprint is activated under two scenarios:

  • When an incident significantly disrupts six or more Member States.
  • When an incident in at least two Member States requires urgent EU-level policy coordination due to its extensive and significant technical or political impact.

The response includes information exchange, organizing expert meetings, situational reports, coordinating public communication and responses, and, if requested, technical support from other Member States or EU bodies. It involves setting up contact points for all stakeholders and sharing incident information with the Council Presidency and the Commission.

Next Steps:

The Council will discuss this proposal, marking a crucial step in strengthening the EU’s ability to protect and respond to disruptions in its critical infrastructure.

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3. New Measures in Place to Counter Threats from Civil Drones

Both drone and counter drone technologies are ‘exploding’. Yet flying one in the European Union can pose security threats even with the safety measures in place. Existing drone rules as well as certification and registration requirements have made it difficult to use such devices for malicious purposes in the EU. Despite that, their capabilities, which make them an ideal tool to carry out intricate malevolent attacks, represent growing security risks. There have been cases of drones used for criminal activities, including smuggling and spying on critical infrastructure, as well as privacy and safety concerns in residential areas.

Against this backdrop, the European Commission adopted a communication to tackle threats posed by the illegal and perilous use of civil drones.

The new counter-drone policy aims at ensuring that fast-developing tech and the increased number of drones don’t result in unmanageable growth of threats in civil space

The plan, part of an EU Drone Policy, focuses on six key initiatives:

  1. Good practices and information sharing: This will be achieved by improving the coordination of current projects and establishing a specialized group of counter-drone experts within the Commission.
  2. Regulatory Review: The policy includes examining existing regulations to identify areas that need improvement. The goal is to standardize laws and procedures throughout the EU.
  3. Technology Guidance: The EU will assist Member States in selecting the most suitable commercial cyber and non-cyber counter-drone technologies. This support will be provided through expert advice from the counter-drone expert group and the Joint Research Centre (JRC).
  4. Operational Support and Training: Practical guidance and operational assistance will be extended to Member States. This includes broadening counter-drone training programs to encompass the private security sector and law enforcement agencies.
  5. Fostering Research and Innovation: The strategy supports research and innovation through budget programs like Horizon Europe.
  6. Increased Funding: There will be a boost in financial support with the launch of a call for proposals on counter-drone solutions. This initiative is part of the Internal Security Fund thematic facility work programs for 2026-2027.

Next steps:

This Communication details plans up to 2030, including a mid-term review in 2027 and a comprehensive overhaul of the EU’s counter-drone programme by 2030.

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4. EU Plans a Stronger Visa-free Travel Suspension Policy

The European Union is planning for stronger mechanisms to suspend visas, aiming to revamp the region’s challenging migration system effectively.

Visa-free travel has been a boon to the economy, society, and culture, significantly benefiting the travel and tourism sectors across the EU and its partner nations. As a key aspect of the EU’s external relations, visa policies play a vital role in fostering international partnerships.

However, the changing geopolitical landscape presents new challenges to visa-free travel. Issues such as the misuse of visa-free privileges, including irregular migration misalignments with EU visa policies, citizenship-for-investment programs in visa-exempt countries, and state-backed manipulation of migrant flows, have become pressing concerns.

To effectively tackle these issues, the European Commission is introducing a revised visa suspension mechanism. This move follows President von der Leyen’s commitment to strengthen the mechanism and monitor visa-free countries, as stated before the European Council on 20 March 2023. Accompanying this proposal is the sixth report under the existing Visa Suspension Mechanism.

The revision aims to:

  • Broaden Suspension Criteria: The mechanism will now include cases like insufficient alignment with EU visa policy, hybrid threats, and investor citizenship schemes.
  • Extend Procedure Duration: To allow more time for corrective actions. An urgent procedure will also be introduced for rapid response to significant threats or surges in arrivals.
  • Enhance Monitoring and Reporting: Strengthening the Commission’s oversight of countries where issues are detected.

The sixth report, covering countries in the Western Balkans, Eastern Partnership, and regions with investor citizenship schemes, urges these countries to better align with EU visa policies and address issues like unjustified asylum claims, irregular migration, organized crime, and corruption. It specifically points out the risks associated with investor citizenship schemes facilitating visa-free EU entry.

The Commission will maintain its comprehensive monitoring approach for all visa-exempt countries, as outlined in its May 2023 Communication. This includes annual reporting to the European Parliament and the Council, focusing on migration and security challenges in visa-free countries.

Next Steps:

The proposed changes to the Visa Suspension Mechanism will now be negotiated by the European Parliament and the Council. The Commission will also continue to include visa liberalization assessments in its annual enlargement package and, where applicable, EU accession negotiations.

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5. EU Aims to Simplify Living, Working, and Traveling Across Member States for Europeans

The European Commission has unveiled a strategic Communication outlining concrete steps to digitize the coordination of social security systems across Europe. This initiative aims to simplify and expedite access to social security services for citizens and businesses by utilizing digital tools, ultimately reducing administrative burdens.

This digitization will enhance information exchange between national social security institutions, thereby speeding up the recognition and granting of eligible benefits across borders. It’s a move that promises to ease the process for Europeans living, working, and traveling abroad, assist companies in conducting business in other EU countries, and facilitate the cross-border coordination of social security by national administrations.

Despite previous efforts to streamline the cross-border flow of social security information, challenges persist. National institutions, healthcare providers, and labor inspectorates still struggle with accessing and sharing data due to the lack of interoperability between national systems. Additionally, costs are incurred in issuing and verifying entitlement documents.

This Communication reviews the current progress in digitalizing social security coordination, outlines ongoing initiatives, and proposes future actions to fully harness the benefits of digitalization.

Key Measures Proposed:

Accelerating EESSI Implementation: Member States are urged to fully operationalize the Electronic Exchange of Social Security Information (EESSI) by the end of 2024, transitioning from paper-based processes to digital exchanges.

Online Social Security Coordination: Enhancing online procedures for social security coordination, aligning with the Single Digital Gateway Regulation, for seamless cross-border movement and work, and faster access to benefits.

Participation in ESSPASS Pilot: Member States are encouraged to engage in the European Social Security Pass (ESSPASS) pilot, aimed at simplifying the issuance and verification of social security entitlements across borders.

Introduction of EU Digital Identity Wallets: Advancing the use of EU Digital Identity (EUDI) wallets to carry digital entitlement documents, like the European Health Insurance Card (EHIC), for instant verification by relevant authorities.

The Commission will support these actions through technical assistance and EU funding, involving instruments like the Digital Europe Programme and InvestEU. The European Labour Authority will contribute by sharing best practices and facilitating exchanges among national authorities.

Next Steps:

The Commission invites the European Parliament and the Council to endorse this approach and calls for collaborative efforts among Member States and stakeholders for implementation. Annual meetings will be held to monitor progress.

This digitalization is also crucial in the context of ongoing negotiations on revising EU social security coordination rules. The Commission urges a swift agreement on this revision to modernize the legal framework and pledges continued support to co-legislators in achieving this goal.

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6. The 2024 Commission Work Programme to focus on simpler rules for citizens and businesses

The 2024 Commission Work Programme, emphasizes the simplification of regulations for EU citizens and businesses.

The Programme reviews past achievements and introduces new proposals and initiatives focused on reducing bureaucratic complexities. Already, 15 proposals have been introduced since March 2023, with 26 more rationalization proposals announced today, detailed in a dedicated annex alongside evaluations and fitness checks.

With the 2024 European elections approaching, the Commission’s new initiatives are carefully chosen to fulfill its commitments and address new challenges. These initiatives resonate with President von der Leyen’s 2023 State of the Union address and letter of intent, aiming to streamline operations without compromising on social, safety, consumer protection, environmental, or economic standards.

With less than a year until the 2024 European elections, the Commission will put forward 18 new policy proposals to tackle emerging challenges and follow through on its commitments from 2019. They include:

  • the launch of a dialogue on the future of agriculture in the EU
  • an initiative to give AI start-ups access to EU high-performance computers
  • a European space law
  • a focus on economic challenges related to labour and skill shortages, education, social dialogue, inflation and ease of doing business
  • stronger cooperation to fight the smuggling of migrants

Key to this strategy is the reduction of burdensome reporting requirements by 25%. Notable steps include reforming the Union Customs Code, projected to save traders around €2 billion, and revising statistical survey rules to save approximately €450 million, particularly benefiting SMEs.

The Work Programme introduces simplifications across various policy areas, such as consolidating overlapping obligations, reducing business impact, and enhancing digitalization.

The Commission has fulfilled over 90% of its 2019 Political Guidelines commitments. In 2024, collaboration with the European Parliament and Council will be crucial to finalize outstanding proposals, ensuring that Europe’s citizens and businesses fully benefit from EU policies.

The Commission remains committed to the European Green Deal, ensuring a fair, smart, and inclusive green transition. This includes citizen and industry dialogues, support for vulnerable groups through the Social Climate Fund, strategic dialogues on EU agriculture’s future, and digital age initiatives like AI start-ups access to high-performance computers and a European space law proposal.

Challenges like labor and skill shortages, education, inflation, and ease of business will be addressed in 2024. Support for Ukraine against Russia’s aggression, partnerships with Africa, fair trade, defense capability development, fighting migrant smuggling, and preparing for an enlarged Union are also top priorities.

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7. Commission Proposes EU-Wide Disability and Parking Card

The European Commission has put forward a legislative proposal to enhance freedom of movement for individuals with disabilities. This initiative aims to ensure that they can equally access special conditions, preferential treatments, and parking rights in other EU Member States. The proposal introduces a universal European Disability Card and upgrades the existing European Parking Card for those with disabilities, both of which will be recognized across the EU.

European Disability Card:

Currently, the lack of international recognition of disability status hinders individuals from accessing certain benefits while traveling in the EU. The proposed European Disability Card will provide verified proof of disability throughout the EU, ensuring equal access to special conditions and preferential treatments in various sectors such as transport, cultural events, museums, and leisure facilities. This card will be issued by national authorities and will complement existing national cards or certificates.

Enhancing the European Parking Card:

Recognizing the importance of private car transport for many with disabilities, the Commission proposes enhancements to the European Parking Card. This updated card will grant equal parking rights in any EU Member State and will come in a standardized format, replacing national versions and ensuring EU-wide recognition.

  • Accessibility and Compliance
  • To ensure the cards are user-friendly and to minimize administrative burdens, the proposal requires Member States to:
    Issue both physical and digital versions of the cards.
  • Publicly disclose the issuance and withdrawal rules in accessible formats.
  • Ensure service providers inform about the specific conditions and advantages available to individuals with disabilities in accessible formats.
  • Member States are also mandated to enable actions under national law by individuals with disabilities, their representative organizations, and relevant public bodies to ensure compliance. Upon the Directive’s adoption into national law, Member States will be expected to enforce fines and corrective measures for any violations.

Next Steps:

This proposal by the Commission is set for discussion in the European Parliament and the Council. Once adopted, Member States will have 18 months to integrate the Directive’s provisions into their national laws. This move marks a significant step towards ensuring more inclusive and accessible travel for individuals with disabilities across the EU.

Alber & Geiger – Ensuring your voice is heard

A&G Newsletter Q3 2023

1. EU and Philippines to Revive Stalled Trade Negotiations

The EU and the Philippines have declared their plan to investigate the revival of talks for a forward-looking, equitable, and environmentally conscious free trade agreement (FTA), placing sustainability as a central tenet. In the coming days, both entities will initiate a mutual ‘scoping process’ aimed at gauging their alignment regarding the prospective FTA. A positive outcome from this process, followed by consultations with member nations, would enable the EU and the Philippines to recommence FTA negotiations.

The relaunch of talks was at the top of the agenda of European Commission President Ursula von der Leyen during her visit to the Philippines.

President von der Leyen engaged in discussions with Philippine President Ferdinand Marcos Jr. to enhance relations, which had experienced deterioration due to human rights concerns in recent times. In a joint statement, Von der Leyen expressed that this marked the initial visit of an EU commissioner to the Philippines over 60 years of diplomatic ties, and she believed it would pave the way for “expediting a fresh phase of collaboration.”

“The Philippines is a key partner for us in the Indo-Pacific region, and with the launch of this scoping process we are paving the way to taking our partnership to the next level,” von der Leyen said.

After recommencing FTA negotiations with Thailand earlier this year, this declaration highlights the significant value of the Indo-Pacific region within the EU’s trade priorities. It sets the stage for enhanced trade connections with another dynamic economy in South-East Asia, solidifying the EU’s strategic involvement in this rapidly developing area.

The proposed agreement involves a range of ambitious provisions, including substantial commitments for market access, efficient sanitary and phytosanitary procedures, and the safeguarding of intellectual property rights, including Geographical Indications.

Notably, the EU places a significant emphasis on sustainability within this FTA. The core of the agreement is set to incorporate rigorous and enforceable regulations about Trade and Sustainable Development (TSD). This underscores the EU’s commitment to fostering responsible and sustainable trade practices within its economic partnerships.

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2. Commission Intensifies Efforts to Safeguard Children from Unsafe Toys

The European Commission has introduced a new Toy Safety Regulation aimed at enhancing child safety by amending the existing guidelines. While toys introduced into the EU market are already recognized for their safety standards on a global scale, these proposed revisions seek to further fortify this safeguarding, particularly against potentially harmful chemicals.

The envisioned regulations also target the reduction of the considerable number of unsafe toys that are currently available within the EU, with a particular focus on those sold online. This initiative not only strives to create a more equitable environment between domestically produced toys and imported counterparts but also underscores the Commission’s dedication to child welfare.

Simultaneously, the proposed rules ensure the unobstructed circulation of toys across the Single Market, preserving the principle of free movement while enhancing the overall safety of toys available to children. This initiative, taken by the European Commission, signals a concerted effort to enhance child protection, establish equitable competition, and maintain the high standards of toy safety within the EU.

Building upon existing regulations, the current proposal seeks to update safety standards for toys marketed within the EU, regardless of their origin. The primary goals of this proposal are:

  1. Enhancing Protection against Harmful Chemicals: The proposal not only maintains the ban on carcinogenic, mutagenic, or reproductive toxic substances (CMRs) but also extends the prohibition to other detrimental chemicals. Specifically targeting chemicals with adverse effects on children, the proposal forbids substances such as endocrine disruptors, those affecting the respiratory system, and toxins to specific organs.
  2. Amplifying Enforcement: To ensure the availability of only safe toys in the EU, the proposal mandates a Digital Product Passport for all toys. This passport includes compliance information as per the proposed Regulation. Importers must furnish digital product passports at EU borders, including for online sales. An innovative IT system will screen passports at external borders, identifying shipments requiring thorough customs inspections. While national inspectors will continue conducting checks, the proposal grants the Commission authority to remove unsafe toys from the market in cases not explicitly covered by the Regulation.

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3. Commission Takes Action on Animal Testing Phase-Out Following European Citizens’ Initiative

In response to the European Citizens’ Initiative titled “Save Cruelty-Free Cosmetics — Commit to a Europe Without Animal Testing,” the European Commission announced in July its commitment to expediting the reduction of animal testing across the continent. This decisive action signifies the Commission’s dedication to aligning with citizens’ concerns regarding cruelty-free cosmetics.

The Commission plans to introduce a roadmap encompassing both legislative and non-legislative measures aimed at minimizing animal testing. This roadmap’s overarching goal is to transition towards animal-free regulations within chemicals legislation while concurrently promoting alternative testing methods. Additionally, the Commission aims to reinforce its backing of scientific advancement by facilitating research into alternatives to animal testing and potentially harmonizing Member States’ efforts in this domain.

In response to the European citizens’ initiative’s objectives, the Commission outlines its strategy as follows:

Protect and strengthen the cosmetics animal testing ban: The Commission highlights the existing prohibition on cosmetic products tested on animals under the EU Cosmetics Regulation. While this ban doesn’t cover safety tests for chemical risk assessment mandated by the EU Regulation on the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH), the interplay between these regulations is under review by the Court of Justice. The Commission will consider potential legislative changes based on court case outcomes.

Transform EU chemicals legislation: With a commitment to reducing and eventually eradicating animal testing in chemical-related regulations, the Commission plans to collaborate with stakeholders on a roadmap for animal-free chemical safety assessments. This roadmap will guide forthcoming actions to eliminate animal testing within EU chemicals legislation.

Modernise science in the EU: While the Commission doesn’t deem a legislative proposal necessary for ending animal use in research, training, and education, it will continue robust support for alternative methodologies through funding. The Commission will initiate measures to expedite the decrease in animal testing across research, education, and training, including exploring coordination of Member States’ activities, organizing workshops, and sustaining new training initiatives for young scientists.

The Commission registered the European citizens’ initiative ‘Save Cruelty-Free Cosmetics – Commit to a Europe without Animal Testing’ on 30 June 2021. Its organizers collected support between 31 August 2021 and 31 August 2022. On 25 January 2023, after verification of 1,217,916 statements of support by the Member State authorities, the organizers submitted the initiative to the Commission for examination and reply.

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4. Commission Reveals Global Gateway Investment Plan for Latin America and Caribbean

Team Europe will invest over €45 billion to support the reinforced partnership with Latin America and the Caribbean until 2027 via the Global Gateway program. This is the main outcome of the two-day EU-CELAC summit held in July. EU leaders and leaders from Latin America and the Caribbean meet in Brussels eight years after their last gathering for the third EU-CELAC summit.

They discussed a broad range of issues to bolster the partnership, including:

  • enhanced cooperation in multilateral fora
  • Global peace and security
  • trade and investment
  • efforts to combat climate change
  • justice and security for citizens,

In the end, the leaders adopted a declaration expressing their commitment to renew and strengthen their longstanding bi-regional partnership, reinforce their dialogue, and cooperate to mitigate the adverse effects of climate change and environmental degradation.

Meanwhile, the Global Gateway program includes a list of over 130 projects to make the fair green and digital transition a reality on both sides of the Atlantic.

Some examples of the projects:

The EU will work with LAC partners on Critical Raw Materials (such as lithium and others) in the region (Argentina, Chile), as well as with the Critical Raw Materials Club to strengthen sustainable supply chains.

Brazil: The EU will collaborate with the Brazilian government and EU private sector to expand telecom networks in the Amazon region.

Costa Rica: The EU will help with the electrification of public transport. Conversion of urban bus fleet to electric: 40 public e-vehicles contributing to a reduction of 5,000 CO2 ktons per year.

Colombia: Construction of a metro line.

Jamaica: Deployment of 5G to reach island-wide broadband access.

Paraguay: Upgrade of the electricity network with support to the Administración Nacional de Electricidad.

EU-LAC Digital Alliance: EU-LAC digital cooperation activities are underway such as the extension of the BELLA cable and the creation of two regional Copernicus centers for disaster risk reduction, climate change, and land and marine monitoring.

In Chile, the EU has developed a Team Europe Initiative (TEI) on Green Hydrogen (GH2), to promote investment opportunities.

The GGIA will support LAC countries’ policies towards a climate-neutral economy and a resilient society that lives in harmony with nature. The EU and its Member States have pooled their resources to jointly establish the Team Europe Initiative ‘Brazil Tropical Forests’. The EU will also contribute to the Amazon Fund.

LAC-Health Resilience initiative, supporting the development of local medicines and vaccine manufacturing and health systems resilience, including regulatory frameworks.

LAC-Global Green Bonds Initiative, fostering the development of the green bond market in LAC, thus mobilizing capital for financing a sustainable transition.

In Panama, the EU supports a joint project on universal access to energy.

‘Inclusive Societies’ program to tackle inequalities, reduce poverty and social exclusion, and enhance social cohesion within Latin American and Caribbean countries. It will promote gender and social policies, education and skills development, protection, and social inclusion, with a specific emphasis on women and youth.

Alber & Geiger can ensure state interests are heard and considered as the EU intensifies their global investment support.

5. EU’s New Policy on End-of-Life Vehicles to Promote Circularity in the Automotive Sector

The European Commission has unveiled fresh regulations aimed at establishing a circular materials economy for end-of-life vehicles.

The new initiative will enhance resource access for the EU’s economy, support its environmental and climate goals, strengthen the single market, and help tackle challenges related to the changing automotive industry.

To support the sector’s transition, the Commission has revised current legislation and suggests a single regulation emphasizing key aspects for enhancing design, collection, recycling quality, and simplifying reporting requirements:

“Design circular”: Promoting easier dismantling through improved vehicle design with clear instructions for part replacement.

“Use recycled content”: Mandating that 25% of the plastic used in new vehicles must be recycled from end-of-life cars.

“Treat better”: Ensuring better-quality raw materials recovery, including critical ones, and supporting the reuse and recycling of parts.

“Improve governance”: Establishing national Extended Producer Responsibility schemes to finance waste treatment, improve recycled material quality, and enhance cooperation.

“Collect more and smarter”: Implementing stricter rules, digital tracking, and penalties to prevent vehicle disappearance and banning non-roadworthy vehicle exports.

“Cover more vehicles”: Gradually including motorcycles, lorries, and buses for comprehensive regulation.

The upcoming regulation, set to replace the existing guidelines concerning end-of-life vehicles and material reuse, recycling, and recovery, is anticipated to yield significant environmental advantages. These benefits encompass a yearly reduction of 12.3 million tons of CO2 emissions by 2035, improved utilization of 5.4 million tons of materials, and heightened retrieval of vital raw materials.

The proposed measures are expected to generate €1.8 billion in net income by 2035. This will lead to the creation of more jobs and improved earnings for the waste management and recycling sector. Additionally, these actions will promote enhanced road safety in other countries by preventing the export of unfit vehicles and decreasing detrimental pollution and health hazards in nation’s importing used EU vehicles.

Implementing the regulation will result in long-term energy savings, reduced reliance on imports, and the promotion of sustainable business models.

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6. Commission Registers European Citizens’ Initiative on Taxing Great Wealth

The Commission has approved the registration of a European Citizens’ Initiative (ECI) titled ‘Taxing Great Wealth to Fund Ecological and Social Transition.’ This initiative calls on the Commission to establish a European tax on substantial wealth to support environmental and social progress. It aims to combat climate change, address inequality, and ensure that European citizens contribute fairly to these goals.

It’s important to note that the decision to register the initiative is purely a legal formality and doesn’t pre-determine the Commission’s final legal or political stance on the initiative. The Commission has not yet examined the proposal’s substance.

The next steps involve the organizers having six months to collect signatures. If the ECI garners one million statements of support within a year from at least seven different EU Member States, the Commission will be obliged to respond. The Commission will then decide whether to advance the request, accompanied by an explanation of its decision-making.

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7. Commission Unveils EU Strategy to Lead Web 4.0 and Virtual Worlds

In a bid to stay at the forefront of technological advancements and create a secure and inclusive digital landscape, the European Commission has introduced a fresh strategy focusing on Web 4.0 and virtual worlds. This strategic move aims to foster an environment that is open, secure, trustworthy, fair, and accessible to all EU citizens, businesses, and public entities.

The rapid evolution of the internet is transforming the digital landscape, with Web 4.0 emerging as the next phase beyond the current Web 3.0. While Web 3.0 emphasizes decentralization, openness, and user empowerment, Web 4.0 will introduce seamless integration between digital and real-world elements, offering enhanced interactions between humans and machines.

This forward-looking strategy aligns with the EU’s economic outlook for the post-2030 era, which underscores digitalization as a primary driving force. Web 4.0 is poised to usher in a world characterized by intelligent, interconnected, and immersive experiences. The global virtual world market is estimated to surge from €27 billion in 2022 to over €800 billion by 2030.

The Commission’s vision is for Web 4.0 and virtual worlds to embody EU values, uphold individuals’ rights, and provide fertile ground for European businesses to flourish.

In alignment with the 2030 objectives of the Digital Decade policy program, the European Commission has introduced a comprehensive strategy focusing on the digitalization pillars of skills, business, and public services. The fourth pillar, infrastructure, falls under the Commission’s broader efforts on connectivity, cloud computing, and edge capacities.

Empowering individuals and reinforcing skills

The strategy emphasizes empowering individuals by fostering skills and awareness, ensuring access to reliable information, and nurturing a pool of virtual world specialists. By the end of 2023, the Commission will promote guiding principles for virtual worlds proposed by the Citizens’ Panel and guide a ‘Citizen toolbox’ by early 2024. Skills development, particularly among women and girls, will be supported through Digital Europe Program projects, along with aid for digital content creators via the Creative Europe program.

Business: Supporting a European Web 4.0 industrial ecosystem

To address fragmentation and promote excellence in the virtual world and Web 4.0 value chain, the Commission plans to establish a European Web 4.0 industrial ecosystem. This includes a potential Horizon Europe Partnership on Virtual Worlds starting in 2025. Innovation will be encouraged through support for EU creators, media companies, and regulatory sandboxes.

Government: Supporting societal progress and virtual public services

The EU is investing in initiatives like Destination Earth and European Digital Twin of the Ocean projects, aiming to advance science, precision applications, and informed public-policy decisions. Additionally, the Commission will launch two public flagships, “CitiVerse” for urban planning and a European Virtual Human Twin for clinical decisions.

Shaping global standards for open and interoperable virtual worlds and Web 4.0

To prevent domination by a few major players, the Commission will engage with global stakeholders and promote open and interoperable standards for virtual worlds and Web 4.0, aligning with EU values and vision.

Alber & Geiger – Ensuring your voice is heard in the EU’s tech transformation.

8. Green-Freight: Paving the Way to Profitability with a Lighter Carbon Footprint

The European Commission has unveiled a comprehensive set of measures aimed at revolutionizing the freight transport sector for a more sustainable future. These initiatives focus on enhancing rail infrastructure management, providing stronger incentives for low-emission trucks, and increasing transparency regarding greenhouse gas emissions from freight transport. The overarching goal is to boost sector efficiency and contribute to the ambitious target of reducing transport emissions by 90% by 2050, as outlined in the European Green Deal, all while fostering continued growth in the EU single market.

Optimizing Rail Capacity

With rail infrastructure becoming both expensive and congested, the proposed regulation seeks to optimize rail track usage, enhance cross-border coordination, improve punctuality and reliability, and attract more freight companies to rail transport. This will not only benefit the freight sector but also passengers who will enjoy additional rail services, better network utilization, and improved cross-border connectivity.

The current annual, national, and manual approach to capacity management creates bottlenecks, particularly at borders, hindering the functioning of the Single Market. The new regulation builds on the Timetable Redesign Project and aims to address the unique needs of both passenger and freight rail services.

Incentives for Low-Emission Trucks

Over 50% of EU freight is currently transported by road, a significant contributor to greenhouse gas emissions. The proposal revises existing rules to allow extra weight for zero-emission vehicles, promoting cleaner technologies. As these technologies evolve and become lighter, cleaner vehicles will gain a payload advantage over conventional lorries.

The proposal also encourages the adoption of more aerodynamic cabins and energy-saving devices to enhance driver comfort, safety, and the efficiency of zero-emission powertrains.

CountEmissionsEU: Comparing carbon footprints

The Commission is putting forth a standardized method for companies to compute their greenhouse gas emissions, which can be utilized for public disclosure or contractual obligations. This proposed approach aligns with the recently adopted ISO/CEN standard, focusing on quantifying and reporting emissions from passenger and freight transport operations. This move towards consistent data collection from door to door will empower service providers to evaluate their offerings and provide consumers with the information needed to make informed decisions regarding transportation and delivery choices.

These proposals will now undergo review and consideration by the European Parliament and the Council as part of the legislative process.

Alber & Geiger – Ensuring your voice is heard in the EU’s tech transformation.

9. Textile Circular Economy: Reducing Waste, Boosting Markets for Used Textiles

The European Commission proposed rules meant to hold textile producers accountable for the entire lifecycle of their products while fostering sustainable textile waste management practices across the EU. This initiative, aligned with the EU Strategy for Sustainable and Circular Textiles, seeks to accelerate the development of separate collection, sorting, reuse, and recycling systems for textiles, offering numerous benefits.

Increasing the availability of used textiles is expected to generate local employment opportunities, reduce consumer costs, and mitigate the environmental impacts of textile production.

The proposed legislation introduces mandatory and standardized Extended Producer Responsibility (EPR) schemes for textiles in all EU Member States. EPR schemes have proven effective in managing waste from various products, including packaging, batteries, and electronic equipment. Producers will shoulder the costs of textile waste management, providing them with incentives to reduce waste and enhance textile product circularity.

Producers’ contributions to EPR schemes will be based on the environmental performance of textiles, a concept known as ‘eco-modulation.’

The rules will facilitate Member States’ compliance with the requirement to separately collect textiles by 2025, aligning with existing legislation. Producer contributions will fund investments in a separate collection, sorting, reuse, and recycling infrastructure. The proposed waste management regulations prioritize sorting textiles for reuse and recycling when they can’t be reused.

Additionally, social enterprises engaged in textile collection and treatment will benefit from increased business opportunities and a larger market for second-hand textiles.

The proposal encourages research and development into innovative circularity technologies for the textile sector, such as fiber-to-fiber recycling.

Addressing the issue of illegal textile waste exports to ill-equipped countries, the new law will clarify the distinction between waste and reusable textiles, curbing the practice of exporting waste disguised as reusable items. These measures complement the proposal for a new Regulation on waste shipments, ensuring that textile waste shipments occur only when there are guarantees of environmentally sound management.

The Commission’s proposal on a targeted amendment of the Waste Framework Directive will now be considered by the European Parliament and the Council in the ordinary legislative procedure.

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10. EU’s Bold Vision on Climate Change, Environment, Peace, Security, and Defense

The European Commission and the High Representative, Josep Borrell adopted a Joint Communication outlining the European Union’s strategy for addressing the growing impacts of climate change and environmental deterioration within the fields of peace, security, and defense.

Climate-related extremes, temperature, and sea level rise, desertification, water shortages, biodiversity threats, environmental pollution, and contamination pose grave risks to global well-being, potentially leading to displacement, migration, pandemics, social unrest, instability, and conflicts. Europe’s armed forces, too, grapple with the shifting and complex conditions driven by climate change, prompting allies and partners to reassess their policies.

This Joint Communication presents a fresh perspective and establishes a framework for the EU’s response to these challenges, encompassing society, security operations, and heightened global competition for resources and technologies necessary for a sustainable transition.

A New Approach to Climate and Security Nexus

The Joint Communication sets out four main priorities:

Strengthening planning, decision-making, and implementation, through reliable and accessible evidence-based analysis on the climate and security nexus;

Operationalizing the response to climate and security challenges in EU external action, inter alia through integrating the climate and security nexus in regional and national conflict analyses;

Enhancing the climate adaptation and mitigation measures of Member States’ civilian and military operations and infrastructure to lower costs, and carbon footprints, while ensuring that operational effectiveness is maintained;

Reinforcing international partnerships through multilateral fora and with partners such as NATO, in line with the EU’s climate change and environment agenda.

The EU seeks to enhance the integration of climate, peace, and security considerations in its external policies through this Communication. It outlines a comprehensive strategy, spanning data, policies, missions, defense, and collaboration with third parties, to ensure that the impacts of climate change are systematically addressed across all facets of external policymaking, planning, and operations.

This plan aims to bolster the EU and its partners’ resilience and security amid the mounting climate crisis, fostering synergies between diverse policies to ensure that external actions and capabilities are poised to confront these pressing challenges effectively.

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References:

1* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4024

2* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4010

3* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3993

4* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3863

5* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3819

6* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3741

7* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3718

8* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3767

9* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3635

10* https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3492

EU opens public consultation for its upcoming Climate Law

In March, the Commission opened the public consultation for the European Climate Law which is the first major realization of the New Green Deal. As part of this process, the European Commission is seeking the views of stakeholders to design climate action and share information to develop these new policies. The consultation period will run from 4 March to 27 May 2020 with the aim of adopting the law before November 2020.

This law will translate the European Union’s Green Deal commitments into law. The European climate law will enshrine the objective of climate neutrality by 2050 in European law and will set up the various financing funds. This Act sets out a greenhouse gas emissions reduction trajectory by September 2020. Thereafter the Commission will initiate a review of several EU regulations to ensure their compatibility with the climate trajectory. By June 2021 the Commission wants to re-evaluate the Emission Trading System (ETS) Directive, the Effort Sharing Regulation, the Energy Efficiency Directive, the Renewable Energy Directive and the CO2 Performance standards for Cars and vans. Public consultations for several of these regulations are already underway.

With the opening of public consultations, the Commission is seeking input from all stakeholders in order to guide its climate law. The Commission stressed the importance of scientific data and industry solutions in defining its action plan. Therefore, all companies related to the energy, environment, transport and other industrial sectors impacted by the revision of these regulations under the European Climate Law should be involved in the public consultation process in order to safeguard their interests.

EU paves the way to a closer association with Africa

The European Commission and the High Representative for Foreign Affairs presented the basis for a new strategy with Africa on March 11. Several objectives are outlined in the Action Plan: establishing a partnership on green and digital transition, supporting the development of a legislative framework for trade and investment, defining partnerships in education and research, increasing investment and cooperation in the humanitarian and security field. In this sense, what the Commission is planning will affect all companies that trade or plan to trade with Africa, but also all African States themselves, which will be able to benefit from this strengthened partnership.

More specifically, the energy sector is particularly concerned, as the EU wishes to step up investment in decarbonised energy. Regulatory convergence will be promoted, in particular on e-commerce and the digitisation of financial services and data regulation. African states will benefit from a renewed flow of investment of public and private funds. Through the NDICI tool, the EU foresees more than EUR 60 billion of investment in guarantees from 2021 to 2027. In addition, the EU will provide financial and technical assistance in the implementation of the African continent’s free trade agreement. This partnership will also be an opportunity for companies with activities in Africa to strengthen their presence. The programme provides for the establishment of a regulatory framework to ensure a level playing field and investment protection in all African States.

To sum up, this new strategy marks the EU’s willingness to strengthen its relationship with Africa in various fields, from ecology to the digital economy. The aim is to reach a new Joint EU-Africa Strategy replacing the 2007 Joint Strategy after the new African-EU Summit planned for October 2020. This document sets out a renewed ambition for Africa-EU relations. It is necessary for African States as well as for companies trading with Africa to strengthen their presence in Brussels in order to make the most of these renewed ambitions.

EU’s Data Regulation

At the start of the year, the European Commission published a European strategy on data. The strategy covers data economy, data protection and standardized data sharing. It envisages also the creation of an EU Data Law in 2021. There will be strict rules that other countries might replicate in the future.

In more detail, the strategy foresees measures for data access and use including a legislative framework for the governance of common European data spaces that will be presented in the fourth quarter of 2020. In addition, the European Commission will invest in strengthening the EU’s capabilities and infrastructures for data processing and interoperability. In fact, the European Commission intends to set-up a cloud service marketplace in the fourth quarter of 2022. Moreover, the European Commission intends to empower individuals with respect to their data and build capacity for small and medium enterprises. Last, the European Commission will promote common European data spaces in strategic sectors such as energy, finance, health and agriculture.

The European Commission has initiated a consultation process on the European strategy on data, which will last until May 19, 2020. European and non-European industries, especially those that are heavily data driven, need to raise their voice in Brussels and in key capitals like Paris and Berlin now that the debate has started.

EU carbon border tax

The European Green Deal, proposed by President von der Leyen to be delivered in the initial 100 days in office, will include the first European Climate Law enshrining the 2050 climate-neutrality target into legislation. The Green Deal will include a more inclusive Emissions Trading System (ETS), as well as a Carbon Border Tax to mitigate ETS’s effects on the market.

An extension of the ETS in the airlines sector will be translated to increased costs for the industry and additional taxes. The adjustment tax is yet to be formally proposed, but it aims to prevent businesses from relocating to laxer jurisdictions, creating ‘carbon leakage’, and to protect them from non-EU competitors.

The additional tax-burdens are met with criticism due to their incompatibility to WTO rules and the distortion of the level-playing field. If not applied unanimously with European unilateral backing, the tax adjustment risks high costs for businesses and consumers. Additionally, sectors with a high degree of cross-border division of labour or a global supply chain will be most heavily affected. Ramifications of the supposed tax were also felt in wider sectors outside the energy industry, as the levy is feared to worsen trade relations with the US, causing increased tariffs on EU products.

EU to enforce rules on online payments

The European Payments Service Directive II (PSD2), in force since January 2018, is currently stirring debate among Member States regarding the process of its implementation. The Directive is designed to harmonize and simplify money transfers inside the EU, decrease fraud in online payments, and inform consumers about the rights and obligations.

The revised PSD2 extends several obligations concerning data protection and information to and from international payments. It mandates stronger security requirements for online transactions and obliges providers to request customer authentication and demands they register. While the PSD2 compliance date was set for September 2019, the European Banking Authority unconditionally extended the implementation period in order to allow for full application of the new requirements. Nevertheless, a fixed common EU-wide transition period, agreed upon by Member States, is anticipated by the European Commission in order to ensure state-wide compliance.

Enforcement of PSD2 will allow consumers and merchants to increasingly benefit from the internal market and e-commerce. Its efficient integration will increase competitiveness and cost-efficiency for consumers and service providers. PSD2 will allow companies, other than banks, to offer new financial services to the public with consumers’ consent.

EU restrictions on electrical and electronic materials

European legislation restricting the use of hazardous substances (RoHS) in electrical and electronic equipment was approved in 2003 and has since been reviewed in 2011 and 2017. The European Commission initiated in September a consultation to collect public and business’ opinions in order to assess the performance of the restriction of hazardous elements, the management of chemical waste and the impact of these materials on human and environmental health. Currently the use of lead, mercury, cadmium, hexavalent chromium, PBB and PBDE in electrical and electronic equipment is restricted. Four phthalates were recently added to this list in July 2019.

The evaluation will assess the effectiveness, efficiency, relevance and coherence of the current RoHS. The consultation will evaluate the functioning of the Internal Market, ensuring that the current legislation avoids distortion of competition that arises from differing product requirements among Member States. Input from the consultation will shape the Commission’s decision on policy options for the future. Amendments to the directive will affect a wide scope of manufacturers, as any product, which requires electric currents, is within scope. It has potential to affect the circular economy, restrict chemicals, and increase the standards of chemical waste management.