EU Insight 14 October 2024

Brussels, 11 October 2024

PREPARATION FOR COMMISSIONER HEARINGS RAMPS UP

This week the European Parliament took several significant steps in anticipation of the upcoming Commissioner-designate hearings. For one, the Legal Affairs Committee successfully finalised its vetting of the 26 Commissioner hopefuls with regards to any potential conflicts of interest they may have had. Parliament’s leadership approved the final schedule for the hearings, which, are set to take place from 4 to 12 November. Notably, the hearings for the six Commission Executive Vice Presidents will take place at the very end of the process. Lastly, MEPs submitted their written questions, which will serve to structure the hearings, to the respective Commissioners-designate who will have until 22 October to reply to them in writing.

COUNCIL ENDORSES €35 BILLION LOAN TO UKRAINE

The Council endorsed a new financial aid package to Ukraine, in line with the EU’s continued efforts to support the country in its defence against Russian aggression. Concretely, the 27 Member States, agreed to loan up to €35 billion to Ukraine, which are to be disbursed in 2025. For context, the EU’s loan is part of a broader financial support package worth up to €45 billion which the G7 agreed to in June. Tthis aid package is backed by the Russian assets frozen by western authorities, the majority of which are held in custody in Belgium. As such, any future revenue proceeding from those assets will be asigned to repaying the loan.

PARLIAMENT ADDS FUEL TO THE DEBATE ON THE 2035 COMBUSTION ENGINE BAN

This week, the European Parliament plenary discussed the future of the EU’s automotive industry, in light of the upcoming ban on the sale of combustion engine cars as of 2035. Since the initiative was adopted, despite industry backlash and German hesitation, in early 2023, the public debate around the topic has only grown. The European People’s Party (EPP), the largest political group in the European Parliament, has openly called for a revision of the legislation, to allow  the sale of cars running on e-fuels, thus facilitating the transition away from traditional diesel and petrol powered vehicles. While Commission President von der Leyen seems to be open to the idea, any attempts to revise the ban will face opposition from climate advocacy groups, who argue it could undermine the growth of the electric-vehicle market.

COUNCIL AGREES ON MODERNISATION OF EU LIABILITY RULES FOR DEFECTIVE PRODUCTS

The Council adopted a Directive updating the EU liability rulebook for defective products, finalising the revision of a legislation dating back to 1985. This new framework is meant to bring the EU’s rules up to date with the digital age and emerging circular economy business models. For instance, the revision expands the scope of the framework to also cover digital files and software, while also exempting manufacturers from liability, in case their products are repaired or upgraded by a third party. As such, once the revised framework starts applying in two years, it should facilitate consumers to obtain compensation from damages, while providing legal clarity to producers.

COMMISSION EARMARKS €865 MILLION TO SPEED UP 2030 DIGITAL DECADE GOALS

The Commission announced the second work programme for its Connecting Europe Facility (CEF) Digital, which will allocate €865 million from 2024 to 2027. Overall, in line with the EU´s 2030 Digital Decade objective of ensuring that all citizens and business have access to high-speed internet, the initiative aims to fund improvements to digital infrastructure across Europe. To that end, the newly announced programme is set to support the deployment of 5G infrastructure across Europe and gigabit networks in sectors like healthcare, transport, and manufacturing. The programme will also fund the expansion and upgrading of backbone networks, which include quantum communication networks and submarine cables.

COMING UP NEXT WEEK

• 14 October: Environment Council.
• 14 October: Foreign Affairs Council.
• 15 October: General Affairs Council.
• 15 October: Transport, Telecommunications and Energy Council.
• 16 October: College of Commissioners. On the agenda: Enlargement Package 2024.
• 17-18 October: European Council (EUCO). On the agenda: Ukraine, Middle East, competitiveness, migration, European semester, climate change and biodiversity.
• 17-18 October: Informal meeting of trade ministers.

Tuomas Tierala, Managing Partner Brussels, Kreab

_________________________________________________________

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