EU Insight, 22 March 2024

Brussels, 22 March 2024

EU LEADERS DISCUSS UKRAINE AID, GAZA CEASEFIRE AND ENLARGEMENT

European Union leaders gathered for a two-day Summit in Brussels where they took stock of the EU’s support to Ukraine and discussed the latest developments in the Middle East as well as security and defence, migration and the European Semester among other issues. Following the meeting, EU leaders urged the Council and the Commission to explore options for funding mobilisation for Ukraine; called for an immediate humanitarian pause leading to a sustainable ceasefire in Gaza and highlighted the importance of swiftly implementing the European Defence Industrial Strategy noting their commitment to enhancing military and civilian preparedness and crisis management.

EU ADOPTS RULES TO SAFEGUARD WHOLESALE ENERGY MARKETS

The Council adopted the Regulation on Wholesale Energy Market Integrity and Transparency. The rules, introduced in response to the energy crisis exacerbated by Russia’s invasion of Ukraine, include clearer and stricter requirements for market participants in the EU who are residents in a third country. The new regulation also gives the European Union Agency for the Cooperation of Energy Regulators the right to investigate cases with a cross-border dimension and impose periodic penalty payments to ensure compliance with on-site inspection decisions. The Council’s endorsement marks the last step in the legislative process. The new rules will be published in the EU Official Journal in the coming weeks.

AGREEMENT TO EXTEND TRADE SUPPORT FOR UKRAINE

The Council and European Parliament reached a provisional political agreement to extend the suspension of import duties and quotas on Ukrainian exports to the EU until 5 June 2025, reinforcing the EU’s support for Ukraine. The updated regulation also introduces strengthened safeguards for sensitive agricultural products to protect EU markets and farmers, including an automatic safeguard mechanism for products like poultry, eggs, sugar, oats, maize, groats, and honey. This measure aims to balance support for Ukraine’s economy while protecting EU agricultural interests, emphasizing the EU’s commitment to Ukraine’s recovery and market stability. The agreement will be formally endorsed in both institutions in the coming weeks.

PARLIAMENT ADOPT MEASURES TO TACKLE LATE PAYMENTS AND SUPPORT SMEs

Following intense debates, the European Parliament adopted its position on the Late Payments Directive. The initiative aims to revise the existing rules by bringing fairness in commercial transactions, increasing the resilience of SMEs and supply chains, fostering a more widespread use of digitalisation and improving the financial literacy of entrepreneurs. The file’s progress will depend on the Council reaching a general approach, which at this stage seems uncertain under the Belgian Presidency. Trilogue negotiations are expected to commence in early to mid-2025 at the earliest.

PARLIAMENT ADOPT MEASURES TO REVIEW EU PHARMACEUTICAL POLICY

The European Parliament adopted its position on the new directive and regulation covering medicinal products for human use. The proposals, which aim to review the EU’s existing pharmaceutical legislation, seek to enhance the availability, accessibility, and affordability of medicines, while promoting the competitiveness of the EU pharmaceutical industry. As part of its position, the Parliament proposes the introduction of a regulatory data protection period during which other companies cannot access product data for seven and a half years to incentivize innovation.

COMING UP NEXT WEEK

• 24-25 March: Informal meeting of fisheries ministers. On the agenda: future of the EU fisheries and aquaculture sector
• 25 March: Environment Council. On the agenda: Waste framework directive
• 26 March: Agriculture and Fisheries Council. On the agenda: Responses to the current situation in the agricultural sector
• 27 March: College of Commissioners. On the agenda: Higher education package

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.