EU Insight – 29 November 2024

Brussels, 29 November 2024

PARLIAMENT APPROVES VON DER LEYEN II COMMISSION DESPITE LOW SUPPORT

Following the conclusion of the confirmation hearings for the next College of Commissioners, Members of the European Parliament met in Strasbourg for a final vote of endorsement. Despite a narrow margin of only 52% approval, all 26 Commissioners were confirmed. This margin represents a historic low in support for a proposed College of Commissioners. Before the vote, Commission President Ursula von der Leyen delivered a final address emphasizing the need to strengthen the bloc’s competitive edge while maintaining the EU’s high standards on climate action and social rights. The new College of Commissioners is set to take office on December 1, for their term running through October 31, 2029.

COP29 AGREEMENT TRIPLE DEVELOPING NATIONS FINANCING CONTRIBUTIONS

This year’s COP29 concluded after two weeks of intense negotiations. The final agreement highlights the New Collective Quantified Goal (NCQG), which will triple contributions from developing nations to $300 billion annually. The overall annual climate financing target, aimed at significantly increasing funding for climate efforts, will also rise to $1.3 trillion by 2035. The increase in contributions will remain voluntary for developing countries but mandatory for developed economies. Despite the NCQG setting a new benchmark in climate financing, disparities among major polluting economies, such as China and Saudi Arabia, continue to pose challenges.

COMMISSION UNVEILS EUROPEAN SEMESTER AUTUMN PACKAGE

The European Commission published its European Semester Autumn Package, the first under the EU’s new fiscal rules. Ahead of the Autumn Package, EU Member States were tasked with submitting their medium-term fiscal structural plans and draft 2025 budgetary plans which outline legislative actions taken and the path towards sustainable public expenditure levels. Only one Member State, the Netherlands, of the twenty-two submitted medium-term fiscal structural plan was deemed not in line with the Commission’s recommendations. Several Member States remain not fully in line but will have until the end of 2024 to amend each of the submitted plans before the Commission invokes the revamped excessive deficit procedure.

COMMISSION CHALLENGES CHINA’S ANTI-DUMPING CLAIMS AND TARIFFS ON BRANDY

Resulting of the tension of trade relations, China decided to impose provisional tariffs on imports of European-produced brandy. The decision, based on China’s Commerce Ministry claim of EU producers dumping goods, caused multiple European objections to China’s reasoning and rejection of said findings. The conflict ultimately resulted in the European Commission bringing the matter before the World Trade Organization (WTO), and formally requesting a consultation. As a result, China now has 10 days to respond to the EU request, and if no agreement with the EU is found, a WTO panel could be summoned to decide on the matter.

AGREEMENT WITHIN THE COUNCIL ON A POSITION REGARDING THE RESTORE PROPOSAL

EU Member State ambassadors endorsed The Council’s position on the RESTORE proposal, which amends the Regulation of the European Agricultural Fund for Rural Development. The endorsement will allow for expedited Council and European Parliament negotiations, which are set to begin in the next weeks. The amendments will facilitate the use of cohesion funds for member states affected by natural disasters like floods and provide flexibility in the reallocation of the European Regional Development Fund (ERDF) and the European Social Fund Plus (ESF+). Key amendments to the Commission’s proposal by Member States include a reduced co-financing rate of 95% and capping reprogrammed resources at 10% of initial allocations.

COMING UP NEXT WEEK 

• 2 – 3 December: Employment, Social Policy, Health and Consumer Affairs Council. On the agenda: European Semester 2025, traineeships directive, pharmaceutical package.
• 3 – 6 December: OECD Global Forum on Competition. On the Agenda: antitrust, food supply chain, best practices, analytical convergences, global competitiveness agenda
• 5 – 6 December: Transport, Telecommunications and Energy Council. On the agenda: cybersecurity, ‘road safety’ package, digital infrastructure needs, passenger rights

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