COMMISSION LAUNCHES CONSULTATION TO REFORM EU MARKETS
The European Commission launched a consultation on its planned review for the electricity market design. Considering the ongoing energy crisis, the plan is to make the market more resilient, reduce electricity price volatility linked to gas prices, and foster the clean energy transition. Concretely the reform will aim to decouple electricity prices from natural gas prices and ensure predictable income for renewable and nuclear producers via contracts for difference. The consultation will run until 13 February. The legislative proposal should follow in March this year.
PARLIAMENT COMMITTEE ADOPTS RULES TO STRENGHTEN EU SEMICONDUCTOR SECTOR
The European Parliament’s Industry and Energy Committee adopted both the “Chips Act” and the Chips Joint Undertaking. While the former should bolster technological capacity and innovation in the EU Chips ecosystem, the latter should increase investments for developing this type of European ecosystem also through the “Chips for Europe” initiative. In their amendments to the Chips Act, the committee focussed more on next-generation semiconductors and quantum chips. The Committee also highlighted the importance of international cooperation with partners such as the US, Japan, South Korea and Taiwan. The Commission should establish a chips diplomacy initiative to address any future disruption to supply chains.
VOTE IN PARLIAMENT TO STRENGTHEN RULES ON POLITICAL ADVERTISING
The European Parliament’s Internal Market and Consumer Protection Committee adopted its position on a draft law regulating the transparency and targeting of political advertising. The changes made to the Commission’s proposal create a de facto ban on micro-targeting, a strategy that uses consumer data and demographics to identify the interests of specific individuals. Moreover, changes were made to allow much more information to be made easily available to citizens, authorities, and journalists. The adopted text also strengthens the powers of the national authorities. The Committee also propose to ban non-EU based actors from being able to pay for political advertisement in the EU.
COMMISSION TAKES ACTION TO PROTECT CITIZENS AGAINS ONLINE TERRORIST CONTENT
The European Commission notified 22 Member States for failing to comply with certain obligations from the Regulation on the dissemination of terrorist content online. The Terrorist Content Online Regulation provides a legal framework to ensure that hosting service providers address the misuse of their services for the dissemination of terrorist content online. The Regulation requires Member States to appoint a responsible authority with adequate powers and resources, as well as to ensure the availability of penalties to address breaches to the regulation. The Member States concerned now have two months to respond and address the shortcomings raised by the Commission.
PARLIAMENT ADOPTS POSITION ON BANKING PACKAGE AND AIFMD
The European Parliament’s Economic and Monetary Affairs Committee adopted its positions on the Capital Requirements Regulation and Directive, ergo the banking package. The rules should finalise Basel III implementation and review the prudential treatment of crypto, and amendments to the macroprudential framework. The Committee also adopted its position on the Alternative Investment Fund Managers Directive which encompasses (i) new rules on delegation reporting, (ii) harmonisation and greater enforcement of liquidity management tools and (iii) a new EU framework for loan originating funds. The adoption the files paves the way for trilogues to start under the Swedish presidency.
COMING UP NEXT WEEK
Karl Isaksson, Managing Partner Brussels, Kreab