EU Insight, 9 April 2020

EU LEGISLATIVE ACTIVITY CONTINUES, FOUR CONSULTATIONS ISSUED THIS WEEK

Despite having had to adopt extraordinary social distancing measures, the EU institutions continue to work as normally as they can. For instance, this week the European Commission launched public consultations on i) the revision of the Alternative Fuels Infrastructure Directive, ii) the Renewed Sustainable Finance Strategy, iii) the upcoming Digital Finance Strategy, and iv) the Retail Payments Strategy for the EU. All four consultations will remain open until the end of June. The legislative activity also continues for the co-legislators, with the Council having adopted this week several COVID-19 related Commission proposals that the European Parliament is expected to endorse next week.

DISAGREEMENTS ON COVID-19 ECONOMIC RESPONSE PERSIST IN THE EUROGROUP

Earlier this week the Eurogroup held a 16-hour videocall to consider further measures in the EU’s economic response to COVID-19. The discussion revolved around a €500 billion package comprising i) the European Stability Mechanism’s (ESM) Enhanced Conditions Credit Line (ECCL), ii) the European Investment Bank’s (EIB) Pan-European Guarantee Scheme, iii) the Commission’s proposal for a temporary Support to mitigate Unemployment Risks in an Emergency (SURE), and iv) the setup of a Recovery Fund. Despite the lengthy discussions, there was no agreement between Finance Ministers on a report to be sent to EU leaders for endorsement, with Italy and the Netherlands holding particularly antagonising positions. The meeting will resume today at 18.00 CET.

COMMISSION CALLS FOR SOLIDARITY IN PRODUCTION, DISTRIBUTION AND USE OF MEDICINES

The European Commission issued a Communication that provides guidance to Member States on the optimal and rational supply of medicines, with the aim to avoid shortages during the COVID-19 outbreak. The report calls on Member States to take action on multiple fronts. Firstly, national authorities should avoid preventive national stockpiling and allow exports of medicines towards other Member States in need. Secondly, they should ensure that the production and distribution of medicines continue functioning at full capacity with the aim to maintain, or increase when possible, the levels of supply. Lastly, the use of medicines in hospitals and sales in pharmacies should be optimised, the Commission said.

COMMISSION URGES COORDINATED APPROACH TO USE OF MOBILE APPS AND DATA TO CONTAIN COVID-19

The European Commission adopted a recommendation that sets up a process for developing a common approach for the use of digital means in response to the COVID-19 pandemic. The process, referred to as ‘toolbox’, consists of i) a Pan-European approach for the use of tracing apps that can help citizens to implement social distancing in a more effective way, and ii) a common approach for predicting and modelling the spread of the virus through anonymous and aggregated mobile location data. The Member States, European Commission and European Data Protection Board are expected to work together to develop the ‘toolbox’ by 15 April.

COUNCIL ADOPTS POSITION ON MAJOR REFORM OF THE EU ROAD TRANSPORT SECTOR

The Council of the EU adopted its position on the so-called mobility package. The package is composed of two Regulations and one Directive. One Regulation introduces updated rules on access to the haulage market. The other Regulation contains rules on maximum work and minimum rest times for professional drivers and positioning by means of tachographs. Furthermore, the Directive revises enforcement requirements and lays down rules on posting of drivers. Following the adoption by the Council, the European Parliament will have to agree on the text of the legal acts at second reading.

Kreab Brussels wishes you all a Happy Easter!

COMING UP NEXT WEEK

• 14 April: Video conference of ministers of education. On the agenda: impact of the COVID-19 pandemic on education.
• 15 April: Video conference of ministers of health. On the agenda: medical response to COVID-19.
• 16 April: Video conference of foreign affairs ministers (trade). On the agenda: impact of  COVID-19 outbreak on trade relations and global value chains.
• 16-17 April: European Parliament mini-plenary session. On the agenda: EU’s response to COVID-19 pandemic.

Karl Isaksson, Managing Partner Brussels, Kreab