EU Insight 25 June, 2021

Brussels, 25 June 2021

EU LEADERS DISCUSS ECONOMIC RECOVERY, MIGRATION AND EXTERNAL RELATIONS

In the latest two-day regular European Council, EU leaders took stock of the progress of the vaccination campaign and looked at the way ahead, discussing economic recovery and progress on the Banking Union and Capital Markets Union. They also focused heavily on external relations, discussing migration and EU relationship with several countries, including Turkey and Russia. On migration, EU leaders agreed that cooperation with countries of origin and transit will be intensified as part of EU’s external action. With respect to the economic recovery, they welcomed the entry into force of the Own Resources Decision, and called on the Commission and the Council to take work forward on the approval of National Recovery and Resilience Plans.

PARLIAMENT ADOPTS CLIMATE LAW TO REACH CLIMATE NEUTRALITY BY 2050

The European Parliament formally adopted the EU Climate Law, with 442 votes in favour, 203 against and 51 abstentions. The Climate Law aims to be a cornerstone of the European Green Deal, enshrining the 2050 climate neutrality target in European legislation and increasing the EU GHG emission reduction target for 2030, up from the current 40% to at least 55% compared to 1990. It also provides for a European Scientific Advisory Board on Climate Change to be set up and sectoral roadmaps to be developed. The Parliament was divided on the issue, with some believing it is not ambitious enough; others worry it will damage EU industries and cause unemployment. The Council is expected to formally adopt next week.

APPROVAL OF NATIONAL RECOVERY AND RESILIENCE PLANS CONTINUES

The Commission continued its work on the approval of the Recovery and Resilience Plans under the NextGeneration EU framework, endorsing the plans of Austria, Belgium, France, Germany, Italy, Latvia and Slovakia. This brings the total number of plans approved to twelve. The Council is now set to rubberstamp the Commission’s assessment during the 14 July ECOFIN. After the initial disbursement, corresponding to the 13% pre-financing, further disbursements will be dependent on the satisfactory fulfilment of the milestones and targets outlined in the relative Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.

NEW EU JOINT CYBER UNIT TO ADDRESS LARGE-SCALE SECURITY INCIDENTS

The European Commission proposed a new Joint Cyber Unit to tackle the rising number of serious cyber incidents impacting public services, as well as the life of businesses and citizens across the EU. The Unit aims at bringing together resources and expertise available to the EU and its Member States to effectively prevent, deter and respond to mass cyber incidents and crises. The Commission found that cybersecurity communities, including civilian, law enforcement, diplomatic and cyber defence communities, as well as private sector partners, too often operate separately. With the Joint Cyber Unit, they will have a virtual and physical platform of cooperation.

EU IMPOSES SANCTIONS ON BELARUS FOLLOWING SERIOUS HUMAN RIGHTS VIOLATIONS

The Council has introduced new restrictive measures against Belarus to respond to the escalation of serious human rights violations and the violent repression of civil society, democratic opposition, and journalists, as well as to the forced landing of a Ryanair flight in Minsk last month. The new targeted economic sanctions include the prohibition to directly or indirectly sell, supply, transfer or export to anyone in Belarus equipment, technology or software intended primarily for use in the monitoring or interception of the internet and of telephone communications, and dual-use goods and technologies for military use, among other things.

COMING UP NEXT WEEK

• 28-29 June: Agriculture and Fisheries Council. On the agenda: Reform of the Common Agricultural Policy, Biological control agents, Honey bees, Market Situation, Fishing Opportunities in 2022, Fisheries Control, Other Matters.
• 30 June: College of Commissioners meeting. On the agenda: Revision of Directive 2008/48/EC on credit agreements for consumers.

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