EU Insight, 2 September 2022

Brussels, 2 September 2022

COMMISSION PREPARES A PACKAGE OF MEASURES TO ADDRESS SOARING ENERGY PRICES

The European Commission continues its work seeking solutions to the soaring energy prices across the EU. The Commission is currently working on a package of measures to optimise the functioning of European electricity markets and to lower the impact of energy prices paid by consumers and businesses. Earlier, EU Member States agreed that a common European approach would be best suited to address the situation ahead of the winter. The Commission intends to present a package to Energy Ministers in the upcoming extraordinary Energy Council set to take place on 9 September.

EU FOREIGN MINISTERS AGREED TO SUSPEND VISA FACILITATION AGREEMENT

EU Foreign Ministers met in Prague where the matter of visas and travel bans for Russian citizens was discussed. In the press conference following the meeting, EU’s High Representative, Josep Borrell, announced that the EU Member States reached a political agreement on full suspension of the EU-Russia visa facilitation agreement to reduce the number of issued new visas. In addition, Member States agreed that those Russian citizens who do not support the war shall be given the opportunity to travel to the EU. Lastly, it was agreed that passports issued in Ukraine’s occupied territories will not be recognised by the EU.

EUROZONE INFLATION REMAINS HIGH AHEAD OF THE EUROPEAN CENTRAL BANK MEETING

The Governing Council of the European Central Bank (ECB) will have a challenging time finding solutions for a record high eurozone inflation during its meeting next week. The European Parliament in its economic briefing highlighted the continuous increase in inflation across the EU since late 2021. In addition, Eurostat, the statistical office of the European Union, figures indicate that inflation continued to rise in August 2022, going up to 9.1% from 8.9% in July. Moreover, the most recent economic outlook reports from the International Monetary Fund, European Commission, and the ECB all point towards deteriorating economic conditions driven by inflation.

EUROPEAN MEDICAL AGENCY AUTHORISED THE FIRST VARIANT-ADAPTED BOOSTER VACCINES

The European Medicines Agency approved the first two variant-adapted COVID-19 booster vaccines, namely Comirnaty by BioNTech-Pfizer and Spikevax by Moderna. The booster vaccines were developed to offer increased, broader protection against current and future variants. According to the Commissioner for Health and Food Safety, the risk of a new wave of infections this upcoming winter remains considerable. Therefore, the Commissioner stressed the importance to protect Europeans against the likely risk of autumn and winter waves of COVID-19 infections. In addition, the Commissioner called on the EU Member States to plan and launch vaccination campaigns.

MEMBER STATES TO RECEIVE FUNDS UNDER THE NEW COMMON AGRICULTURAL POLICY

The European Commission approved the first package of the Common Agricultural Policy (CAP) strategic plans for seven countries: Denmark, Finland, France, Ireland, Poland, Portugal, and Spain. The seven plans approved represent a budget of over €120 billion, including over €34 billion dedicated exclusively to environmental and climate objectives, and eco-schemes. The CAP will benefit from €270 billion in funding for the 2023-2027 period aiming to shape the transition to a sustainable, resilient, and modern European agricultural sector. In addition, the reformed policy aims to take better account of small and medium-sized family farms as well as young farmers.

COMING UP NEXT WEEK

• 5 September: EU-Ukraine Association Council. On the agenda: EU-Ukraine bilateral agenda; implementation of the Association Agreement.
• 6 September: EU-Georgia Association Council. On the agenda: Discussion on EU-Georgia relations.
• 6 – 7 September: Informal meeting of health ministers.
• 7 September: College of Commissioners meeting. On the agenda: European care strategy.
• 8 September: European Central Bank Governing Council meeting. On the agenda: Monetary policy
• 9 September: Informal Eurogroup. On the agenda: economic situation and coordination of the macroeconomic policies in the euro area; update on digital euro.
• 9 September: Extraordinary Transport, Telecommunications and Energy Council
• 9-10 September: Informal meeting of economic and financial affairs ministers. On the agenda: Economic consequences of the Russian invasion of Ukraine; Energy.

Karl Isaksson, Managing Partner Brussels, Kreab

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Kreab • Tel: +32 2 737 6900 • karl.isaksson@kreab.com • www.kreab.com/brussels • Twitter: @KreabEU.