20/12/2024
EU Insight 20 December 2024
Brussels, 20 December 2024
GERMAN CHANCELLOR LOSES CONFIDENCE VOTE, PAVING WAY FOR ELECTION IN FEBRUARY
German Chancellor Olaf Scholz lost the Bundestag’s confidence in a vote that followed the collapse of the ‘traffic-light’ coalition (i.e. socialists, greens and liberals) last month, after Scholz fired liberal finance minister Christian Linder. The vote paves the way for the dissolution of the Bundestag on 27 December and, more importantly, early federal elections on 23 February. As things stand, the Christian Democratic Union (CDU) is set to win the election with some 30% of votes, followed by the far-right Alternative for Germany (AfD, 19%), Scholz’s Social Democratic Party (SPD, 17%) and the Greens (13%). Meanwhile, the liberals of the Free Democratic Party (FDP) are currently polling at 4% and therefore at risk of not entering the Bundestag.
EU ADOPTS 15TH SANCTIONS PACKAGE AGAINST RUSSIA
The Council of the EU adopted its 15th package of economic and individual sanctions against Russia since the launch of its full-scale invasion of Ukraine now almost three years ago. This latest round of measures follows the European Council’s conclusions of 17 October and aims to further undermine Russia’s capacity to sustain its war of aggression against Ukraine. The package includes expanded individual listings and tighter export restrictions targeting dual-use goods and technologies, as well as safeguard measures for European companies. These provisions aim to facilitate divestments from Russian markets while discouraging any new business activity in Russia.
EUROPEAN PARLIAMENT ESTABLISHES NEW STANDING AND SPECIAL COMMITTEES
In a move to reflect the growing importance of security, public health, and housing in the EU’s policy agenda, the European Parliament has decided to upgrade the subcommittees on Security and Defence (SEDE) and on Public Health (SANT) as full standing committees. Security and defence have gained prominence considering the growing global geopolitical tensions while the COVID-19 pandemic underscored the need for a robust and coordinated public health framework. Meanwhile, two new special committees have been created. The first one will be dedicated to Housing and the second one to the “Democracy Shield”. The composition of the committees will be announced during the next plenary session (20-23 January 2025).
COMMISSION LAUNCHES INVESTIGATION OVER TIKTOK ELECTION RISKS UNDER DSA
The Commission has launched an in-depth investigation into TikTok’s alleged violation of the Digital Services Act (DSA) in the context of the recent Romanian presidential election. According to the EU executive, credible intelligence suggests that the video-sharing platform was used by foreign actors to undermine elections in Romania. Under the DSA, digital platforms must identify, assess, and mitigate systemic risks to election integrity. The probe will focus on whether TikTok failed to implement mitigating measures with regards to its recommender systems and political advertisement policies. The Commission will keep gathering evidence in view of future steps, which could include commitments, interim measures, or non-compliance decisions. The timeline is still uncertain as the DSA does not set mandatory deadlines for concluding probes.
EU OUTPERFORMS US AND CHINA ON CORPORATE R&D INVESTMENT GROWTH
Against the backdrop of the often cited lack of competitiveness of the EU’s economy on the global stage, the 2024 EU Industrial R&D Scoreboard found that for the first time since 2013, the European industry outperformed American (+5.9%) and Chinese (+9.6%) corporates when it comes to the growth of investments in research and development (R&D). The EU’s growth in corporate R&D reached 9.8%, thanks to the investments in the automotive, information and communications technology (ICT) and health sectors, among others. The automotive sector accounted for 34.2% of all EU R&D investments while the global investment in the energy sector saw a 21% increase in 2023.
WE WISH YOU A MERRY CHRISTMAS AND A HAPPY NEW YEAR!
THE EU INSIGHT WILL BE BACK IN JANUARY 2025.
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