EU Insight, 24 May 2024

Brussels, 24 May 2024

EU ELECTIONS: LEAD CANDIDATES FACE OFF IN BRUSSELS DEBATE

The lead candidates for the next Commission Presidency assembled in Brussels for the final major debate ahead of the EU elections, taking place in two weeks’ time. Candidates faced off on a number of key issues ranging from economic competitiveness, and defence and security to the Green Deal. On the latter, while the Greens, Socialists and the Left called for renewed ambition and ensuring a social transition, the EPP and Renew underlined the importance of incentivizing the green transition rather than overburdening businesses. Security and defence was also a contentious issue where candidates largely supported the creation of a European Defence Fund, but notably left-leaning parties warned against the rise of the far-right (who was missing from the debate) as an internal security problem.

USE OF PROFITS FROM FROZEN RUSSIAN ASSETS TO SUPPORT UKRAINE APPROVED

In light of Russia’s ongoing aggression and Ukraine’s increased financial necessity, the Council approved measures to direct net windfall profits from immobilized Russian assets to support the country’s defence. These profits, accrued by the frozen assets held by central securities depositories in the EU, will now be used to fund military support and reconstruction efforts in Ukraine. The decision follows from a G7 statement where leaders of the group encouraged for the productive use of the profits stemming from the confiscated assets. In the same vein, discussions continue at G7 level to also use the assets’ profits to secure and provide additional loans to Ukraine.

COUNCIL ADOPTS VISION FOR FUTURE DIGITAL POLICY

As a key objective of the current Commission, delivering on the digital transition is nothing new, but it is set to stay at the top of the policy agenda for the next legislative cycle. To that end, the Council outlined its vision for the future of digital policy, underlining a common European approach with regards to fostering innovative technologies, effectively addressing cybersecurity threats, and focusing on the implementation of finalised legislation. Amongst said legislation is the EU’s groundbreaking AI Act, which the Council formally endorsed this week. Notably, this pioneering initiative aims to safeguard the use of AI while enabling innovation by EU companies.

COMMISSION TAKES STOCK OF EUROPEAN HEALTH UNION

The Commission adopted a communication on the European Health Union, highlighting significant advancements in EU health policy over the past four years and anticipating future action. Overall, the European Health Union, established during the COVID-19 pandemic, aims to enhance preparedness for future health crises and support innovative health policies across the EU. Looking back, the Commission notes important achievements under the strategy, such as improvements in health security measures, enabling equitable access to medicines, establishing a leading plan to fight cancer, and setting up comprehensive actions mental health to support mental health. Looking ahead, the Commission underlines the importance of continued cooperation amongst Member States across the outlined elements to ensure the Union’s resilience and foster innovation in the healthcare space.

COUNCIL ENDORSES DEPLOYMENT OF RESPONSE TEAMS TO COUNTER HYBRID THREATS

The Council approved a framework for establishing EU Hybrid Rapid Response Teams, enabling their deployment upon request to counter hybrid threats. These teams are part of the EU Hybrid Toolbox, established in 2022 to facilitate the EU’s response to threats such as disinformation, cyber-attacks, critical infrastructure attacks, instrumentalised migration, and election interference. As such, the teams aim to support Member States and partner countries in addressing the increased use of hybrid attacks in today’s challenging geopolitical environment. As a key initiative to protect the EU’s democracy, the initiative reflects the EU’s commitment to enhancing security, leveraging both civilian and military expertise to counter evolving threats.

COMING UP NEXT WEEK

• 27 May: Agriculture and Fisheries Council. On the agenda: current crisis situation in the agricultural sector, and the future of crisis management.
• 27 May: Foreign Affairs Council. On the agenda: Russia/Ukraine, Middle East,  electoral process leading to presidential elections in Venezuela and Georgia.
• 27 May: International Ministerial Meeting. On the agenda: Supporting the future of Syria and the region
• 28 May: Foreign Affairs Council (Defence). On the agenda: Ukraine, defence Technological and Industrial Base.
• 28 May: European Economic Area Council. On the agenda: Ukraine/Russia, Georgia and the Middle East, the role of the green transition in Europe’s competitiveness.
• 29 May: College of Commissioners. On the agenda: Discussion on EU’s preparedness and crisis response.
• 30 May: Foreign Affairs Council (Trade). On the agenda: The Future of EU trade policy, Follow-up to the 13th WTO Ministerial Conference, EU-Africa relations.

Karl Isaksson, Managing Partner Brussels, Kreab

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