EU Insight, 10 November 2023

Brussels, 10 November 2023

NATURE RESTAURATION AGREEMENT

The Council and European Parliament reached an agreement on the contentious Nature Restauration Law. The law’s main aim is to foster the restoration of natural habitats and thus protect biodiversity, by setting specific EU-wide restoration targets. Concretely, by 2030, Member States should aim to restore at least 30% of habitats in poor condition, with the target increasing to 90% by 2050. As a result, the initiative aims to restore at least 20% of land and sea areas which have been damaged by agriculture and industrial processes. In parallel, ahead of the upcoming COP28, the Parliament endorsed a resolution calling for all participants to strengthen their climate commitments.

EU ENLARGEMENT PACKAGE

The Commission presented its latest enlargement package, taking stock of the countries with candidate status for EU-membership. Notably, the Commission recommends the Council to start accession talks with Moldova, Ukraine, and Georgia, thus furthering their progress on the path towards accession. The recommendation comes in light of ongoing geopolitical tensions, as well as a recognition of the countries’ developments. In addition, the package provides a detailed assessment of the state of play progress made by the rest of countries, mainly focusing on implementation of fundamental reforms, as well as on providing clear guidance on the reform priorities ahead.

PARLIAMENT AND COUNCIL ADVANCE LEGISLATION TO REDUCE AIR POLLUTION

The European Parliament adopted its negotiating mandate on the Regulation commonly known as Euro 7. The aim of the Regulation is to reduce emissions from motor vehicles, by updating existing limits on exhaust emissions, while introducing new provisions, aiming to reduce emissions proceeding from tyres and breaks. In addition, the Regulation aims to increase the battery durability of electric vehicles. In a similar vein, the Council adopted its negotiating position on an initiative aiming to ensure good air quality in the EU. Concretely, the initiative sets EU-wide 2030 air quality objectives and aims to align the EU’s standards to those of the World Health Organization.

CO-LEGISLATORS AGREE KEY INITAITIVES TO FURTHER THE DIGITAL TRANSITION

The European Parliament and the Council reached agreements on two key initiatives advancing the EU’s digital transition. First, on the new European digital identity (eID) framework, which lays the groundwork for the European digital identity wallet. The wallet should serve as a digital means of authentication, allowing citizens to link their identity documents, bank accounts and driving licenses, while being able to validate electronic signatures. The second step towards the digital transition comes through the agreement on the instant payments Regulation, which aims to foster the widespread adoption of fast money transfers in euros, aiming to adapt the European payments ecosystem to the digital age.

COMMISSION PROPOSES PARTIAL AMENDMENTS TO TEMPORARY STATE AID FRAMEWORK

The Commission proposed partial amendments to the State aid Temporary Crisis and Transition Framework to Member States. The framework was set in place to help the EU’s economy deal with the impacts of Russia’s invasion of Ukraine and the ensuing energy crisis, by making the EU’s state aid rule more flexible. Given that the war’s repercussions are still being felt by European economies, and considering the recent instability in the Middle East, the Commission propose to partially extend the temporary state aid measures, by increasing limits to the aid giving, and extending the deadline for the disbursement of aid by 3 months, until 31 March 2024.

COMING UP NEXT WEEK

• 13- 14 November: Foreign Affairs Council. On the agenda: Will discuss the Russian aggression against Ukraine and the latest developments concerning Armenia and Azerbaijan.
• 13-14 November: Informal meeting of housing ministers. On the agenda: Discuss initiatives related to a particular topic or Council configuration.
• 15 November: 46th ACP-EU Council of Ministers. On the agenda. Decision on the denomination of the new Partnership Agreement.
• 15 November: General Affairs Council. On agenda. policy debate on the European Parliament’s proposal for revising the EU rules governing the EP elections

Karl Isaksson, Managing Partner Brussels, Kreab

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