EU Insight 13 May, 2022

Brussels, 13 May 2022

COUNCIL AND PARLIAMENT REACH PROVISIONAL AGREEMENT ON DORA

The Council and European Parliament reached a provisional agreement on the Digital Operational Resilience Act (DORA). DORA enables the European financial sector to maintain resilient operations through severe operational disruptions. Against the backdrop of increasing risks of cyber-attacks over the last decades, the EU seeks to strengthen the IT security of financial entities by setting uniform requirements for the security of network and information systems of companies and organisations operating in the financial sector as well as critical third parties providing ICT-related services to them. DORA will apply to almost all financial entities, except auditors which are exempt from the scope under the provisional agreement.

EU CO-LEGISLATORS STRIKE AGREEMENT ON REVIEW OF CYBERSECURITY RULES

The Council and European Parliament agreed on rules aimed at strengthening cybersecurity, resilience, and incident response capacities at EU level. The reviewed Network and Information Security (NIS2) Directive introduces measures for cybersecurity risk management and reporting obligations to an updated list of sectors and activities. Moreover, EU co-legislators agreed that all medium- and large-size entities in such sectors will fall within the remit of the Directive, implying that Member States will no longer be able to determine the entities that qualify as operators of essential services. After the co-legislators give the formal approval to the text, Member States will have 21 months to incorporate the rules into national law.

PARLIAMENT COMMITTEE VOTES ON RULES FOR ZERO-EMISSION CARS

The Members of European Parliament Environment Committee adopted its position on a proposal aiming to revise the CO2 emission performance standards for new cars and vans. The committee voted in favour of a ban on combustion engines in 2035 but did not support setting a 2027 target. Moreover, the Parliament is asking the Commission to draft a report on the need to mitigate negative economic impacts of the transition with targeted funding. The Parliament is expected to adopt their position during the June plenary session, after which negotiations will start with the Council.

MEMBER STATES AGREE ON NEGOTIATING MANDATE FOR GAS STORAGE PROPOSAL

The Council reached a mandate to negotiate with the European Parliament on a proposal on gas storage that aims at improving security of energy supply by specifying the rules for underground gas storage and counting stocks of liquefied natural gas (LNG). In 2022, countries should fill out at least 80% of their storage capacity and at least 90% in the following years. Additionally, the mandate specifies that Member States without storage facilities should have access to reserves in other countries and will share the financial burden of the filling obligations. Filling obligations, if not extended, will expire on 31 December 2026.

EU AND JAPAN AGREE ON COOPERATION PROGRAMMES

The President of the European Council Charles Michel and the President of the European Commission Ursula von der Leyen met with the Japanese Prime Minister Fumio Kishida at the 28th EU-Japan summit in Tokyo. Following the event, leaders published a statement reaffirming their close cooperation, condemning Russian aggression, and committing to expanding cooperation in areas of cybersecurity, countering disinformation, and security and crisis management. Additionally, the EU and Japan launched a Digital Partnership to ensure the digital transformation of both regions and confirmed their continued work on the implementation of the EU-Japan Green Alliance.

COMING UP NEXT WEEK

• 16 May: EU-Canada Joint Ministerial Committee meeting. On the agenda: EU-Canada Strategic Partnership Agreement, Joint Response to Russia’s invasion of Ukraine, Security and Defence Cooperation, shared Foreign Policy Priorities, bilateral engagement in support of Democracy, Human Rights, and a rules-based multilateral order.
• 16 May: Foreign Affairs Council. On the agenda: Russia’s invasion of Ukraine, Western Balkan and current affairs.
• 17 May: Foreign Affairs Council (Defence). On the agenda: Implementation of the Strategic Compass, Russia’s invasion of Ukraine and Steering Board.
• 18 May: EU-Armenia Partnership Council. On the agenda: Comprehensive and Enhanced Partnership Agreement, Economic and Investment Plan and regional issues (Russia/Ukraine, Turkey, Iran), and Nagorno Karabakh.
• 18 May: European Union Military Committee (EUMC), EU chiefs of defence.
• 20 May: Foreign Affairs Council (Development). On the agenda: Russia’s invasion of Ukraine, Exchange of views with UN High Commissioner for Refugees.

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.