EU Insight 15 November 2024

Brussels, 15 November 2024

COMMISSIONER HEARINGS PART 2: NATIONAL POLITICS HIJACK CONFIRMATION PROCESS

This week should have marked the culmination of the hearing process after the European Parliament held its final hearings for the six Commission Executive Vice Presidents-designate (EVPs). However, national political dynamics hijacked the confirmation of the new College, and more specifically put in danger the endorsement of Spain’s Commissioner candidate, EVP for Competition and the Green Transition, Teresa Ribera. As such, amidst ongoing negotiations between the political groups, the endorsement of the six EVPs and the Hungarian candidate, which should have taken place right after the conclusion of the hearings, has been postponed to next week. If no positive decision is taken then, this would jeopardise the scheduled plenary vote on the College of Commissioners, initially set for 27 November, and in turn potentially delay the start of the new Commission to the new year, instead of December.

COP29: PARTIES AGREE TO INTERNATIONAL CARBON MARKET STANDARD

COP29 kicked off in Baku this week. While the gathering has been surrounded by controversy due to the host’s humanitarian and climate action history, some progress has already been made during this first week. Concretely, participatory countries agreed on an international carbon market standard, concluding ten years of negotiations. This agreement will instore a centralised global carbon market managed by the UN. Additionally several countries, including the UK and Brazil announced their 2035 emission reduction targets. Regardless, the success of this year’s COP will depend on its outcomes in relation to climate financing, i.e. the financial support for climate action provided by developed economies. These negotiations on global climate financing ambitions, whose outcome is highly uncertain, will likely last until the final day of COP29, 22 November.

DEFORESTATION: PARLIAMENT ENDORSES ONE YEAR DELAY AND AMENDS TEXT FURTHER

The European Parliament endorsed the delay, for the application of the EU deforestation Regulation. For context, after stakeholder backlash, the Commission proposed to delay the Regulation’s application from 30 December 2024, by one year, a proposal which had to be validated by both the European Parliament and the Council. While the Council fully adopted the Commission’s proposal, the Parliament included additional amendments to the text, despite opposition from various parliamentary groups and NGOs. These introduce a “no-risk” category for countries with stable forest areas, aiming to remove the initiative’s requirements for imports from countries with negligible deforestation risk. As a result of said amendments, co-legislators will have to enter interinstitutional negotiations, putting in jeopardy the formal adoption of the delay, before the Regulation’s original application date.

EU LEADERS ADOPT DECLARATION ON EU COMPETITIVENESS

At its informal meeting in Budapest last week, the European Council adopted the so called Budapest Declaration on the New European Competitiveness Deal. Building upon the continuous calls of EU leaders for a new competitiveness deal, and the recent reports by Enrico Letta and Mario Draghi, the Budapest Declaration stresses the urgent need for a more competitive and innovative EU. Amidst geopolitical and economic challenges, the EU leaders renewed their commitment to reduce the existing gaps in innovation and productivity, notably with the US and China. To do so, they identified twelve initiatives, to boost EU competitiveness. The European Council pledged to regularly review the progress over the coming year.

META & APPLE UNDER SCRUTINY OVER ANTITRUST AND CONSUMER LAW BREACHES

Both Meta and Apple have come under regulatory scrutiny over alleged violations of EU antitrust and consumer protection laws. The Commission found that Meta exploited its dominant position by tying its online ads service Marketplace to its social network Facebook and by imposing unfair conditions to advertisers on its platforms. The investigation, launched in 2021, was concluded with the imposition of a fine of over EUR 797 million. Meanwhile, Apple was asked to end geo-blocking practices on its media services which, according to the Commission and national consumer authorities, are in violation of the Digital Markets Act (DMA). These decisions underscore the EU executive’s intensified focus on effectively enforcing its dregulatory framework digital markets competition.

KREAB DEBATE ON US ELECTIONS

Lastly, this week we hosted a lunch discussion on the outcome of the US elections and its potential implications on the EU with our Senior Advisor, Krisjanis Karins, Former Prime Minister of Latvia. A key topic from the debate included the expected continued drift between China and US, and its knock-on effect on the EU’s relations with the US and China respectively. Other issues discussed were the role of the EU-UK relations in this new geopolitical context, and the importance for the EU, now more than ever, to take its future into its own hands. Should you be based in Brussels and would like to receive invites to similar events in the future, please do not hesitate to contact us.

COMING UP NEXT WEEK

• 11-22 November: UN Climate Change Conference in Baku (COP29).
• 18-19 November: G20 Summit.
• 18-19 November: Foreign Affairs Council. On the agenda: Russian aggression against Ukraine, Georgia, EU-US relations, situation in the Middle East, and Horn of Africa.
• 18-19 November: Informal meeting of ministers responsible for demography.
• 18 November: Agriculture and Fisheries Council. On the agenda: Common agricultural policy
• 19 November: General Affairs Council. On the agenda: Rule of law.
• 21 November: Foreign Affairs Council. On the agenda: Future of EU’s trade policy, trade relations with the US, WTO reform.

Tuomas Tierala, Managing Partner Brussels, Kreab

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