17/12/2019
CLIMATE, EMU DEEPENING AND LONG-TERM EU BUDGET DISCUSSED AT EUROPEAN COUNCIL
EU leaders gathered in Brussels for a Summit where discussions focused on climate change, the EU’s long-term budget, deepening economic integration and Brexit. The European Council notably endorsed the objective of achieving a climate neutral EU by 2050, therefore supporting the Commission’s plans for a European Green Deal. Leaders also adopted a Euro Summit statement welcoming the progress made to date on deepening the Economic and Monetary Union and encouraging further progress in the coming year. They were however unable to find an agreement on the long-term EU budget, with disagreements over its size and the allocations between different programmes persisting.
EU LEADERS EXPECT QUICK RATIFICATION OF BREXIT DEAL AFTER JOHNSON’S ELECTION WIN
The summit was quick to react to the results of the UK General Election. At the press conference following the summit where leaders adopted conclusions on Brexit, European Council President Charles Michel stated that Boris Johnson had secured a “clear victory”. He added that the EU expects the UK Parliament to ratify the Withdrawal Agreement as soon as possible. Commission President Ursula von der Leyen noted that the EU is ready for the next phase of negotiations, where the Commission will prioritise issues where a cliff edge is possible at the end of 2020. The UK is set to leave the EU on 31 January 2020.
THE COMMISSION PRESENTED THE EUROPEAN GREEN DEAL
Only ten days into its mandate, the European Commission announced the European Green Deal. It aims to make the EU the first climate neutral continent by 2050 and address greenhouse gas emissions and environment pollution in all sectors, while also transforming the EU into a fair and prosperous society with a competitive economy. Furthermore, it will provide financial incentives and visibility for the economy to reduce its emissions, generate sustainable growth and showcase the EU as a global driver of the fight against climate change. In the European Parliament, most parties welcomed the Green Deal and the opportunity to increase the EU’s climate ambitions.
MEMBER STATES REJECT AGREEMENT ON TAXONOMY
The EU countries’ Ambassadors rejected the provisional interinstitutional agreement on the so-called Taxonomy Regulation that was reached last week. Member States were unhappy about issues related to sector exclusions (i.e. nuclear, gas, fossil fuels) and governance. Under the previously agreed text, fossil fuels would not have been eligible for Taxonomy compliant economic activities, with ambiguity on whether nuclear could have been included, at least as a transitional activity. Moreover, Member States would like more oversight over how the technical screening criteria are written. Negotiations will continue next week, as the Finnish Presidency aims for an agreement by the end of its tenure.
EU REACHED AGREEMENT ON MOBILITY PACKAGE
The Finnish Presidency and the European Parliament reached a provisional agreement on new rules for the road haulage sector after an all-night negotiation. The new rules will ensure that local wages must be paid both for domestic haulage within one country and for cabotage. Furthermore, it tightens the cabotage rules and makes the rules for foreign drivers stricter in terms of driving and resting times and the return to home. The agreement is still subject to approval by the Council and the EP Transport Committee. The new rules will apply from 2021.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab