29/07/2024
EU Insight, 26 July 2024
Brussels, 26 July 2024
EUROPEAN PARLIAMENT COMMITTEE LEADERSHIP ELECTED AHEAD OF SUMMER BREAK
Following last week’s constitutive plenary, this week saw the inaugural meetings of the European Parliament Committees, serving to officially elect each Committee’s leadership (chair and vice-chairs) ahead of summer recess. Notably, the positions had been previously divvied up amongst political groups, an exercise in political horse trading which left the far-right groups without a single leadership position. Notable members elected for leadership positions are Germany’s Marie-Agnes Strack-Zimmerman, Renews’s lead candidate for the EU elections, as Chair of the Subcommittee on Security and Defence and Poland’s Borys Budka as the Chair of the Committee on Industry, Research and Energy. Concrete policy work in the Committees will resume after the summer recess.
COMMISSION FINDS DETERIORATED MEDIA FREEDOM IN SEVERAL MEMBER STATES
The European Commission released its latest edition of its Annual Rule of Law report, which assess Member States’ respect for the EU’s foundational values. This year’s edition marks the fifth iteration of a report, which aims to serve as a warning by the Commission to those Member States it finds are backsliding democratically. As such, the report sets out several recommendations covering the judiciary, anti-corruption, freedom of the press, and institutional checks and balances. Overall, while commending progress made on the matter in some Member States such as Poland, the Commission highlights deteriorated conditions for media freedom in Italy, Hungary, Slovakia, and Malta. Hungary and Slovakia are further reprimanded for the challenges faced by civil society organisations.
MARKET RISK STANDARDS FOR BANKS DELAYED TO ALIGN WITH THE US
The European Commission officially delayed a set of market risk prudential requirements for banks under the so-called Basel III framework. Revised in 2016, in response to the 2008 Global Financial Crisis, the Basel III rules is a stringent international framework aiming to address risks faced by banks and ensure their resilience to financial shocks. As part of the EU’s implementation of the Basel III framework, known as the Banking Package, the market risk requirements were scheduled to apply from 1 January 2025. However, with the US unlikely to implement the standards before 2026, the Commission decided to delay the requirements by 1 year, to align their application with the US and prevent an international unlevel playing field for European banks.
EU AND SINGAPORE CONCLUDE THE EU’S FIRST DIGITAL TRADE AGREEMENT
The EU and Singapore concluded negotiations for a Digital Trade Agreement, complementing the existing EU-Singapore Free Trade Agreement from 2019. This new agreement, the first of its kind for the EU, extends the EU’s trade relationship with Singapore to the digital realm. Concretely, the agreement aims to facilitate digital trade between the jurisdictions while safeguarding consumer trust and ensuring predictability and legal certainty for businesses. This means, once in force, the agreement should foster the trade of digitally enabled goods and services, as well as support the secure cross-border flow of data, while for example introducing strong rules on spam. With the agreement’s conclusion the Commission hopes to provide new opportunities for EU businesses.
THE COUNCIL RENEWS SANCTIONS AGAINST RUSSIA FOR A FURTHER 6 MONTHS
The Council renewed sanctions against Russia for six more months until 31 January 2025, as the Union aims to continue punishing Russia’s invasion of Ukraine. While the extension of the existing sanctions regime is a regular procedure, it remains a symbol of the EU’s support for Ukraine. To recall, the EU’s sanctions on Russia cover trade, finance, technology, dual-use goods, transport, and luxury items, notably restricting Russian banks access to the western financial system and limiting Kremlin-backed media’s access to the EU. The Council’s extension follows last month’s adoption of the EU’s 14th sanctions package since Russia’s full-scale invasion of Ukraine, which targeted Russian exports of gas.
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