EU Insight 2 July, 2021

Brussels, 2 July 2021

PARLIAMENT AND COUNCIL STRIKE A DEAL ON EU FARM POLICY REFORM

The Parliament and Council reached an informal agreement on the common agricultural policy (CAP) reform for 2023-2027. The agreement covers, among others: (i) the minimum budget for direct payments for eco-schemes and the establishment of a learning period for member states; (ii) the mandatory minimum level of internal convergence for direct payments; (iii) greater redistribution of direct payments; (iv) the inclusion of a social dimension in the CAP; (v) the alignment of the CAP with the European Green Deal. The new rules provide that governments should draft strategic implementation plans to be endorsed by the Commission. The new rules will now have to be endorsed by both the Parliament and the Council.

SOLUTIONS FOR EU-UK RELATIONSHIP AND NORTHERN IRELAND PROTOCOL PROPOSED

The Commission took note of the UK’s request to extend a grace period for the movement of chilled meats from Great Britain to Northern Ireland until 30 September 2021, and proposed arrangements in several areas, including for the supply of medicines and guide dogs, as well as a decision waiving the need to show an insurance green card. The aim is to reduce the impact of the Northern Ireland Protocol on citizens as much as possible. The Commission also adopted two adequacy decisions for the UK this week, which allow personal data to flow freely from the EU to the UK, benefitting from an essentially equivalent level of protection to that guaranteed under EU law.

SLOVENIA SIX-MONTHS’ COUNCIL PRESIDENCY TO FOCUS ON RESILIENCE AND RECOVERY

Slovenia Council’s Presidency began this week under the slogan “Together. Resilient. Europe.” In its programme Slovenia identifies four key priorities for its six-months tenure, the second one of its history: (i) facilitating EU’s recovery and reinforcing its resilience; (ii) reflecting on the future of Europe; (iii) strengthening the rule of law and European values; and (iv) increasing security and stability in the European neighbourhood. Under the Presidency, Slovenia is expected to deal with the implementation of the Recovery and Resilience Facility, to guide the twin transition – with a particular emphasis on the upcoming “Fit for 55 Package” – and to oversee the process of the Conference on the Future of Europe.

EU DIGITAL COVID CERTIFICATE STARTS APPLYING AND LIST OF SAFE COUNTRIES EXPAND

On 1 July, the EU Digital COVID Certificate Regulation officially entered into application. This means that EU citizens and residents who comply with the requirements will now be able to have their Digital COVID Certificates issued and verified across the EU. The aim of the certificate is to facilitate and guarantee the safety of free movement, exempting those who possess it from COVID-19-related restrictions. In addition, thanks to significant improvements in the epidemiological situation, the Council  also added 10 countries and one territorial authority to the list of countries for which travel restrictions should be lifted: Armenia, Azerbaijan, Bosnia and Herzegovina, Brunei Darussalam, Canada, Jordan, Montenegro, Qatar, Moldava and Saudi Arabia.

COMMISSION RAISES AMBITIONS FOR EU DEFENCE INDUSTRY

The European Commission aims to support the competitiveness and innovativeness of EU defence industry through several decisions adopted this week. These include: the adoption of the first European Defence Fund (EDF) annual work programme, the selection of 26 new projects under the European Defence Industry Development Programme (EDIDP) with a budget of more than €158 million and the award of a direct grant of €137 million for two major capability development projects under EDIP. With respect to the EDF work programme, during the first year it will co-finance large-scale and complex projects for a total amount of €1.2 billion dedicated to the preparation of large-scale and complex defence platforms and systems and critical technologies.

COMING UP NEXT WEEK

• 5-8 July: European Parliament plenary. On the agenda: European Investment Bank; European Maritime, Fisheries and Aquaculture Fund; Common Agricultural Policy; ageing population; presentation of Slovenian Presidency programme; Connecting Europe; Rule of Law; macroeconomic legislative framework; EU Digital Covid certificate; migration; biodiversity.
• 6 July: College of Commissioners meeting. On the agenda: renewed sustainable finance strategy, establishment of an EU green bond standards.
• 9-10 July: G20 Finance Ministers and Central Bank Governors meeting. On the agenda: international economy; global health; international taxation; financial sector issues;  financing the green transition.

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