EU Insight, 14 February 2020

EUROPEAN PARLIAMENT APPROVES EU-VIETNAM TRADE AND INVESTMENT AGREEMENT

On 12 February the European Parliament approved the EU-Vietnam trade and investment agreement. The decision was welcomed by the European Commission which said that the agreement offers large economic potential, and that it is set to improve the situation of consumers, workers, farmers and businesses. The agreement aims to eliminate tariffs on goods traded between the EU and Vietnam, and it reinforces commitments related to respect of labour rights, environmental protection and the Paris Agreement. The EU-Vietnam agreement will enter into force this year, once ratified by Vietnam.

RESOLUTION ON ARTIFICIAL INTELLIGENCE ADOPTED BY THE EUROPEAN PARLIAMENT

The resolution approved by the European Parliament on artificial intelligence and automated decision-making technologies calls for a stronger set of rights to protect consumers in the context of these two rapidly developing areas. More specifically, the Parliament wishes to see updates to the EU safety and liability laws such as the EU Product Liability Directive. Furthermore, the resolution also foresees ensuring that automated decision-making technologies and profiling of consumer behaviour are not abused in a way which would lead to differentiated pricing and discrimination of consumers based on their nationality.

PARLIAMENT FLEXES ITS MUSCLES AHEAD OF EU BUDGET SUMMIT NEXT WEEK

During a debate on the EU budget for 2021-2027 with the Council and Commission, MEPs stated that the European Parliament will only give its consent to “a budget that meets the EU’s ambitions, including fighting climate change and being sufficiently prepared for the digital and ecological transformation, among others.” The debate this week came ahead of a special European Council summit taking place on 20 February, where EU leaders will try to agree on a common position on the next EU budget. When Member States find an agreement, it will be put to a vote in the European Parliament before it enters into force.

EU ECONOMY TO CONTINUE TO GROW AMIDST CORONAVIRUS UNCERTAINTY

The European Commission published its 2020 Winter Economic Forecast, which finds that the European economy continues to grow at a moderate pace, with the euro area projected to grow 1.2% in 2020 and 2021 while the EU as a whole does slightly better, at 1.4% for both years. High domestic consumption continues to be the engine of growth sustained by increasing wages and household income. Conversely, the largest uncertainty is associated to the spread of the coronavirus, with the most significant impact on global supply chains and travel/tourism. However, the forecast does not take the effects of the virus outbreak into account.

PARLIAMENT SUPPORTS COMMISSION’S PROPOSALS FOR EU-UK TRADE NEGOTIATIONS

The European Parliament discussed the future of EU-UK relations based on the draft negotiating mandate presented by the Commission last week. MEPs adopted a resolution that broadly supports the lines along which the Commission proposed to negotiate and calls for the future association agreement with the UK to be as deep as possible, notwithstanding the integrity of the Single Market and the Customs Union. The Council of the EU is expected to adopt the EU’s negotiating mandate on 25 February, thereby opening the door to the start of trade negotiations in early March.

COMING UP NEXT WEEK

• 17 February: Eurogroup. On the agenda: Commission winter forecast, European Semester, Eurozone budget, Banking Union.
• 17 February: Foreign Affairs Council. On the agenda: EU-African Union relations, Libya, EU-India relations.
• 17 February: General Affairs Council. On the agenda: Preparation of European Council on MFF 2021-2027.
• 18 February: Economic and Monetary Affairs Council. On the agenda: Non-cooperative tax jurisdictions, economic governance review, European Semester, EU annual budget.
• 20 February: Special European Council. On the agenda: MFF 2021-2027.
• 20 February: Education, Youth, Culture and Sports Council (Education).

Karl Isaksson, Managing Partner Brussels, Kreab