EU Insight, 28 April 2023

ECONOMIC GOVERNANCE REVIEW PUT EMPHASIS ON NATIONAL FISCAL SUSTAINABILITY

The European Commission published legislative proposals to implement the reform of the EU’s economic governance rules. The revised rules aim to strengthen public debt sustainability and promote sustainable and inclusive growth in all Member States through reforms and investment. The objectives are: i) to make economic governance simpler, ii) improve national ownership, iii) place a greater emphasis on the medium term and iv) strengthen enforcement through a transparent common EU framework. The Commission calls on the European Parliament and the Council to reach agreement on the legislative proposals as quickly as possible, to anticipate the deactivation of the general escape clause in January 2024.

COMMISSION PROPOSES INTELLECTUAL PROPERTY RULES TO HARMONISE EU PATENTS

The Commission issued proposals on standard essential patents, compulsory licensing of patents in crisis situations and the revision of the legislation on supplementary protection certificates. The aim of the Commission is to help companies to make the most of their inventions, leverage new technologies and contribute to the EU’s competitiveness and technological sovereignty. The proposed Regulations are supposed to create a more transparent, effective, and futureproof intellectual property rights framework and complement the Unitary patent system, which will be operational as of 1 June 2023.

COUNCIL AND PARLIAMENT AGREE TO DECARBONISE THE AVIATION SECTOR

The European Parliament and the Council reached a provisional agreement on a regulation promoting the decarbonisation of the aviation sector and the development of sustainable air Transport (ReFuelEU aviation). The proposal aims to increase both the demand and the supply of sustainable aviation fuels (SAFs), while ensuring a level playing field across the EU air transport market. The text of the provisional agreement retains the core aspects of the Commission’s proposal, including the extent to which it contributes to climate targets. Nevertheless, the text amends some aspects of the proposal to facilitate and accelerate the development of SAFs.

COMMISSION PROPOSES PHARMACEUTICALS REFORM 

The European Commission proposed to revise the EU pharmaceutical legislation, aiming to make it more agile, flexible, and adapted to the needs of citizens and businesses. The revision proposes to make medicines more available, accessible, and affordable, while supporting innovation and boosting the competitiveness of the EU pharmaceutical industry. Moreover, the Commission proposed a Council Recommendation to step up the fight against antimicrobial resistance. The revision includes proposals for a new Directive and a new Regulation, which revise and replace the existing pharmaceutical legislation, including the legislation on medicines for children and for rare diseases. The legislative proposals will now be submitted to the Parliament and the Council.

FIRST SET OF ONLINE PLATFORMS AND SEARCH ENGINES

The European Commission adopted the first designation decision under the Digital Services Act, designating 17 very large online platforms and 2 very large online search engines. Designated companies will have to comply with the full set of new obligations under the DSA. These aim at empowering and protecting users online, including minors, by requiring the designated services to assess and mitigate their systemic risks and to provide robust content moderation tools. Within four months of designation, the platforms and search engines need to adapt their systems, resources, and processes for compliance, set up an independent system of compliance and carry out their first annual risk assessment.

COMING UP NEXT WEEK

• 3 May: College of Commissioners. On the agenda: Ammunition Production Act, Anti-corruption Framework and Sanctions, Recommendation on Piracy of live content.
• 3 – 4 May: Informal meeting of employment and social affairs ministers. On the agenda: Mismatch between Skills and Jobs in the EU, Sustainable Social Protection and Demographic Transition.
• 4 May: Foreign Affairs Council . On the agenda: Multilateral Development Banks, Ukraine, Sudan, Afghanistan, Global Gateway.
• 4 May: Governing Council of the European Central Bank. On the agenda: Monetary Policy.
• 4 – 5 May: Informal meeting of health ministers. On the agenda: Crisis Preparedness, Innovation and Access to Medicines.

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.