Insights | EU Insight 18 October 2024

18/10/2024

EU Insight 18 October 2024

Brussels, 18 October 2024

 

EUROPEAN COUNCIL MEETS IN BRUSSELS AMIDST RISING GEOPOLITICAL TENSIONS

This week, EU leaders met in Brussels for the European Council meeting to discuss a wide range of geopolitical issues. Against the backdrop of evolving geopolitical conflicts, European leaders reaffirmed their commitment to a rules-based international order in the Middle East, calling for peace and addressing the escalating violence. Regarding Ukraine, the leaders advocated for further sanctions on Russian goods and took stock of their progress in supplying military and financial aid. On the European issue of strengthening competitiveness, there was broad consensus on the need for balanced legislation. The European Council urged Member States to act promptly and focus on addressing key challenges affecting the Single Market.

 

POLICYMAKERS AGREE TO DELAY APPLICATION OF EU DEFORESTATION REGULATION

Earlier this week, the Council and the European Parliament agreed to approve the Commission’s proposal to delay the application of the EU Deforestation Regulation by twelve months. Both European legislative bodies expressed their support for the urgent adoption of the proposal to delay, which could be formalized in the coming weeks. The institutions hope that the delay will enable larger operations and traders to comply with measures more feasibly such as the obligation to develop due diligence systems for commodities and products, as well as the identification of risks, without compromising the proposal’s goal of ensuring the exportation of deforestation-free products.

 

COMMISSION PUTS FORTH NEW CYBERSECURITY RULES FOR EU DIGITAL SERVICE PROVIDERS

The Commission adopted the first implementing rules on cybersecurity for critical entities and networks under the NIS2 Directive, aiming to raise cybersecurity standards. This legislative act puts forth specific risk management measures and criteria for reporting of significant incidents in attempts to bolster the EU’s cyber resilience. In twenty days, the act will begin applying to firms providing digital services, such as data centres, cloud computing, e-commerce, online search engines, and social networking platforms. Commission Executive Vice-President Margrethe Vestager stated, “In today’s cybersecurity landscape, stepping up our capabilities, security requirements, and rapid information sharing with up-to-date rules is of paramount importance.”

 

COUNCIL ADOPTS MEASURES HARMONISING DISABILITY RECOGNITION ACROSS THE EU

The Council adopted two Directives which aim at making it easier for persons with disabilities to travel across the EU. The measures will introduce a European Disability Cart and a European Parking Card – issued in a physical and digital format – guaranteeing access to preferential services such as priority entry or designated parking in all EU Member States. By harmonising disability recognition in the EU, the rules will ensure that the rights of people with disabilities are effectively safeguarded across borders. Following the Council’s adoption, Member States will be given three years to revise their national laws and implement the new requirements.

 

COMMISSION PUBLISHES REPORT TO SUPPORT FOREIGN DIRECT INVESTMENT SCREENING

The European Commission published its fourth Annual Report on the screening of foreign direct investments into the Union, in line with the review of the FDI Screening Regulation. This edition of the report highlights the need for EU institutions to strengthen cooperation in identifying and addressing potentially threatening investments from third countries. Despite positive trends in transaction notifications and the implementation of screening mechanisms, the report underscores the current system’s shortcomings, particularly in the varying notification rates of foreign investments. In support of the Regulation’s review, the report urges Member States to endorse the January legislative proposal, which aims to harmonize screening laws across the EU.

 

COMING UP NEXT WEEK

  • 21-22 October: Agriculture and Fisheries Council.
  • 21-24 October: European Parliament Plenary.
  • 21-26 October: International Monetary Fund (IMF) and World Bank Group Annual Meetings. On the agenda: Monetary Policy, Inflation, Digitalisation, CBDCs, Taxation
  • 22 October: College of Commissioners. On the agenda: European Research Area.  

 

Tuomas Tierala, Managing Partner Brussels, Kreab

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