EU INSIGHT, 14 June 2024

Brussels, 14 June 2024

EU ELECTIONS SHIFT EUROPEAN PARLIAMENT TO THE RIGHT BUT THE CENTRE HOLDS

From 6 to 9 June, EU citizens took to the ballots to elect a new European Parliament. As predicted, the centre-right European People’s Party (EPP) emerged as the election’s biggest winner, retaining its position as the leading force. The European Socialists (S&D) and the Liberal Renew Europe held their second and third positions, maintaining the centre’s coalition majority, although due to large losses on Renew’s side with less of a margin. Lastly, the hard-right European Conservatives and Reformists (ECR) and far-right Identity and Democracy’s (ID) generally strong performances brought about an overall shift to the right of the Parliament, albeit to a lesser extent than expected. One of the elections’ primary consequences was President Macron’s call for snap parliamentary elections in France following his party’s dismal results. These, as well as ensuing negotiations in Brussels and Member States will be determinant in defining the new mandate’s policy and political direction.

COMMISSION INTRODUCES PROVISIONAL TARIFFS ON CHINESE EVs 

The European Commission announced the introduction of provisional countervailing duties on imported battery electric vehicles (BEV) from China. The announcement of these tariffs follows the Commission’s anti-subsidy investigation into Chinese BEVs launched in October 2023, which concluded that the Chinese BEV value chain benefits from unfair subsidisation. As such, aiming to protect EU manufacturers and prevent further Chinese BEV dumping, the Commission opted for the introduction of the protectionist trade measure. The provisional tariffs will be introduced by 4 July, and should be turned into a definitive measure, following the endorsement of EU Member States, by 4 November 2024. Importantly, the Commission announced it does not seek to cut trade ties with China but rather ensure a level playing field for EU manufacturers.

MEMBER STATES ADOPTS REVISED TRANS-EUROPEAN TRANSPORT NETWORK REGULATION

The Council adopted a revision of the trans-European transport network (TEN-T) Regulation aiming to foster high-quality transport connectivity across Europe. Overall, the initiative aims to develop a seamlessly connected transport infrastructure ranging from roads and rail to airports. The revision of the rules was part of a broader legislative package aiming to promote efficient and green mobility, and thus sets specific deadlines for completing the network by 2050. Notably, the revision sets an intermediate 2040 deadline for the completion of key high speed rail cross-border connections. In addition, in response to Russia’s invasion of Ukraine, the revised rules integrate Ukraine and Moldova into parts of the network, while downgrading links with Russia and Belarus.

EU COUNTRIES AGREE TO STREAMLINE HIRING PROCESS OF NON-EU WORKERS

The Council endorsed its negotiating mandate on a proposal for the creation of an EU Talent Pool, an EU-wide online platform to match profiles of non-EU jobseekers with job vacancies in key sectors. This initiative aims to enhance the EU labour market’s competitiveness while addressing labour shortages, by facilitating the immigration of skilled workers. Overall, the Talent Pool should help employers and jobseekers by serving as an information repository and thus providing reliable data on qualifications while broadly reducing recruitment process costs. While the initiative’s implementation should remain voluntary, it represents a step towards achieving the Commission’s aim of facilitating job mobility into and within the Union.

EU COMMITS €1.4 BILLION FOR UKRAINE’S RECOVERY AND INVESTMENT

At the Ukraine Recovery Conference in Berlin, European Commission President Ursula von der Leyen announced €1.4 billion in new EU guarantee and grant agreements to continue supporting Ukraine during its defensive efforts against Russia, as well as enabling its future recovery and reconstruction from the war.  Concretely these new funds, which are part of the EU’s broader €50 billion Ukraine Facility, will be disbursed as €1 billion in new loans and €400 million of blended finance grants. Aiming to crowd in private investments, focusing on energy infrastructure and other critical sectors, the EU’s financial support for Ukraine also should serve to enable the country’s path towards EU accession.

COMING UP NEXT WEEK

• 17 June: Environment Council. On the agenda: waste framework review, green claims, nature restoration law, 2040 climate target.
• 17 June: Informal European Council (EUCO). On the agenda: initial discussions on the next institutional cycle, including Commission President.
• 18 June: General Affairs Council. On the agenda: cohesion policy, EU strategic agenda.
• 18 June: Transport, Telecommunications and Energy Council. On the agenda: maritime safety and inland waterways, greening freight transport, road safety.
• 19 June: College of Commissioners. On the agenda: European semester spring package.
• 20 June: Employment, Social Policy, Health and Consumer Affairs Council. On the agenda: European Works Council directive, Equal Treatment directive, European Semester.
• 20 June: Eurogroup. On the agenda: international role of the euro, Euro area competitiveness.
• 21 June: Economic and Financial Affairs Council (ECOFIN). On the agenda: European semester, taxation, digital finance, Capital Markets Union (CMU)
• 21 June: Employment, Social Policy, Health and Consumer Affairs Council. On the agenda: Pharmaceutical package, vaccine-preventable cancers, European Health Union.

Karl Isaksson, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • X: @KreabEU  •  LinkedIn: Kreab Worldwide