ENERGY UNION More Power Or Hot Air

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ENERGY UNION More power or hot air

Tuesday 3 February 2015 N° 5022 43rd year www.europolitics.info The European affairs daily - www.europolitics.info Europolitics is the publication of choice for EU professionals and the wider public. Subscribe at [email protected] and get all the latest news about EU policies at your door.

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Contents N° 5022 Top stories

FINANCIAL SERVICES INTERVIEW GREECE European insurance sector begins Edgards Rinkevics, minister of Commission may “reconsider” its transformation Page 9 foreign affairs, Latvia Page 12 Troika’s involvement Page 11

Sectoral policies Commission to update maritime ENERGY PREMIUM transport strategy...... 10 On europolitics.info

Energy union Economic & monetary affairs, - EFET signal problems with new Modest but hopeful taxation market transparency platform expectations ...... 4 Committee of inquiry: Compromise - Offshore wind power levels off in 2015 Breaking national silos at solution in the offing?...... 10 - Sefcovic wants greater transparency core of project ...... 5 Greece: Commission on energy market Central gas purchasing body: may “reconsider” Ambitions already Troika’s involvement...... 11 shrinking ...... 6 “Energy union needs to External relations be more than EU “Riga has to show that energy policy”...... 7 the Eastern Partnership No energy union without continues”...... 12 robust governance...... 8 Social affairs Financial services, banks, German minimum wage: insurance Moratorium for hauliers...... 13 European insurance sector begins its transformation...... 9 EU agenda...... 14 Pittella on TTIP...... 9 Open forum Europe and the human highway...... 16

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INSIGHT Energy union

Modest but hopeful expectations

By Anca Gurzu sia-Ukraine gas crisis. It comes amid volatile ability to push forward with its investments global energy developments and recogni- in renewables and energy efficiency when The Commission will unveil its strat- tion of Europeans’ relative failure to deal fossil fuels are becoming more financially egy on 25 February amid volatile effectively with energy challenges. affordable. Commission officials argue EU global energy developments and Member states managed to pave the way energy policies must be much more stable discouraging internal patterns to 2030 last autumn, agreeing on their cli- than the price of a barrel of oil, also pointing mate and energy objectives for the next to the Juncker investment plan as the way to After an hour-long debate about the decade – a move set to guide major ele- get wheels turning. energy union at the Bruegel think tank on ments of the energy union as well. How- Given all these risks, experts are con- 29 January, one of the participants wished ever, the internal energy market remains far cerned that the project may become just a Maros Sefcovic “good luck”. The EU from completed, with the December 2014 repackaging of existing initiatives. Behind energy policy chief, who was heading into deadline having passed by. the scenes, Commission officials acknowl- a meeting with Commission President Jean- The main obstacle is the growing rena- edge the energy union must indeed deliver Claude Juncker and other commissioners tionalisation of energy policies, which jeop- something new, for it to “stick” and obtain involved in the flagship project, answered ardises cooperation and may potentially lead EU-wide approval. quickly: “Thanks, I will need it”. to further fragmentation of the EU energy In a final airing of views, stakehold- With just four weeks to go until the EU market. This is noticeable in technical deci- ers are expected to give their input at a executive unveils the much-awaited energy sions, such as the set-up of capacity markets, major conference in Riga, on 6 February. union strategy, expectations are running but also in the inconsistent way member The Commission will unveil the energy high. Since the final curtain has not yet states are dealing with the Union’s largest union strategy on 25 February, together been raised, all stakeholders have been on energy supplier: Russia. Tensions in the gas with a plan to achieve it, a road map of the offensive the past few weeks, detailing sector leave EU officials re-emphasising the EU climate policies ahead of the climate their priorities, doubts and hopes. importance of diversity of supply. conference in Paris in December, and a The European energy agenda is not new The dramatic fall in oil prices has led communication on how to reach the 10% but became a top priority due to the Rus- some commentators to question the EU’s interconnection target. n © Fotolia www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 5022 Tuesday 03 February 2015 INSIGHT 5

Breaking national silos at core of project

By Anca Gurzu which stronger EU-level regulators cies to make these things happen.” This could see through. is because the Lisbon Treaty clearly The energy union’s success will states that member states maintain the depend primarily on the states’ NATIONAL CULTURE OF FRAGMENTATION right to decide their choice of energy political will. Regulators’ power The EU’s energy system is fragmented mix and energy suppliers – a trump will be decisive into 28 national silos, European Com- card national governments are not mission Vice-President Sef- willing to relinquish. covic said, and the purpose of the energy union “is to Power to regulators break the silo culture wher- ever it may exist”. Not sur- One solution that Sefcovic has repeat- prisingly, the energy union’s edly hinted at would be to strengthen first proposed dimension the role of the Agency for the Cooper- focuses on “supply security, ation of Energy Regulators (ACER), as based on solidarity and trust” well as that of the European Network EU-wide energy solutions of Transmission System Operators could explore ways to set up (ENTSO) for gas and electricity. capacity mechanisms more effi- “This would essentially imply a shift ciently, plan support schemes in power to more centralised bodies, for renewables in a more coor- which would not require a shift in dinated manner and optimise treaties,” according to Zachmann. the use of liquefied natural gas For example, Germany, which is (LNG) networks, according to debating the future of North-South Sefcovic. electricity lines, may decide not to Such technical decisions extend its network because it is using would come with big reper- Polish and Czech electricity lines, cussions for member states, where it is sending extra wind-pro- some winning, others losing, duced electricity. But the move often says economist Georg Zach- causes congestion in these neighbour- mann, research fellow at the ing member states, which are investing

© CE think tank Bruegel focus- in expensive devices to stop the elec- Maros Sefcovic ing on energy and climate tricity flows, he adds. “But if ACER issues. “It is important [for would be empowered to check all net- Towards the end of his address to mem- member states] to understand that what work development plans that are there bers of the European Parliament’s Com- they gain from cooperation is higher and give either an amber or green light mittee on the Environment (ENVI) on than the cost of losing some benefits. […] it would have the power to strike 21 January, the European Union’s energy compromises among different players,” chief made a blunt remark: “If you ask Zachmann concludes. me what would be the biggest challenge “It is important [for Having a regulation that tackles secu- in introducing the energy union con- member states] to rity of electricity supply, just as there cept into the European Union, I would understand that what they is one for gas, would also allow for the say this is to change the mindset focused creation of “common objectives at EU right now on national solutions, and gain from cooperation is level, common definition of supply look [instead] for EU-wide solutions,” higher than the cost of standards and also a certain harmoni- Maros Sefcovic said. losing some benefits” sation of methodologies related to gen- Renationalisation of energy policy is eration adequacy,” says Sami Andoura, a phenomenon various observers have research fellow at the Jacques Delors been pointing to in recent years, with Institute and holder of the European solidarity and cooperation being pushed Europe needs to have a vision about energy policy chair at the College of to the sidelines. The energy union will what energy markets will look like. And Europe. not bring about any treaty changes – this vision needs to be shared by all These kinds of ideas must be sold to nor are they desired. Experts agree the participants,” he says. “If, for example, member states not only through the project will only work if member states France does not subscribe to it, it will energy security lens, but also from are willing to work in unison on energy find ways to maintain regulated tariffs. a business point of view, Sefcovic issues, at least regionally, something There are always ways in national poli- acknowledges. n

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Central gas purchasing body: Ambitions already shrinking

By Marie-Martine Buckens take steps for direct delivery of Russian gas, state-owned companies: the scenario is a way of considerably reducing the risk of the same when it comes to the failure, Regional joint purchases could be gas cut-offs by the Ukrainian authorities. shortly after its creation in 1960, of the considered in crisis Conclusion: the idea could have been Euratom Supply Agency, the central and good before the crisis hit. exclusive broker for nuclear material Twice in the past, the EU has tried in the European Atomic Energy Com- to present a centralised response to the INTRUSION munity (Euratom). The agency was set threat of a cut-off in its external energy It was at the same time that the EU, up at a time when Europeans feared an supply. It failed both times: the Euratom backed by the United States, decided energy shortage in the wake of the Suez Supply Agency and the virtually dead to reduce its dependence on Moscow crisis, a situation contradicted by the facts on arrival Caspian Development Cor- by launching the Nabucco project, shortly thereafter. Subsequently, given poration (CDC), put together in 2009 which would have delivered gas from opposition from Germany and especially to accompany the likewise failed Euro- the Caspian Sea to Europe. In paral- France, the system was substantially pean gas pipeline project, Nabucco (now lel, it proposed to set up a single body watered down and the agency reduced to consigned to history). to purchase Caspian gas (CDC). The a registration body. Commissioner Maros Sefcovic’s services Commission hoped that a single buyer will no doubt keep these two unfortunate offering price and demand guarantees REGIONAL PURCHASING BODIES attempts in mind when it comes to incor- would encourage upstream develop- So what will remain of Delors’ idea in porating into the energy union project ment and the construction of infra- his communication on the energy union? the idea of a central gas purchasing body, structure. “That approach, however, Andoura points out some options: “In developed in 2010 by Jacques Delors and not only neglects a possible infringe- certain exceptional circumstances, we Jerzy Buzek (EPP, Poland). ment of competition rules, but also may need to buy gas jointly, especially for At the time, a year after the Rus- implies interference in gas compa- small companies and countries without sia-Ukraine gas crisis, the idea seemed nies’ strategies,” explains a senior DG access. What can they do? They can join excellent because the situation was quite Energy official. Major European firms together to obtain better prices and terms. different from what it is today, Sami like BP, Total and Statoil are present in That’s exactly what is already happening Andoura, researcher at the Jacques Delors the Caspian Sea, particularly the Azeri inside Europe. There are municipalities Institute, told Europolitics (see separate field of Shah Deniz that will supply in France that make joint purchases of gas interview). “Today, the essential solu- the future South Corridor. These are and electricity. Why couldn’t we do the tion is to finalise a common integrated the same firms which, according to an same with external suppliers?” gas market. With a liquid and integrated expert, have never taken kindly to the The Commission proposed to set up this market we would no longer need [a Nabucco financial arrangements that type of regional mechanism in crisis situa- central purchasing body].” included only national user companies. tions in the online consultation under way It was precisely immediately after the Bad timing and supranational incur- on the revision of Regulation 994/2010 on 2009 gas crisis that Germany decided to sions into the interests of private or the security of gas supply. n

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“Energy union needs to be more than EU energy policy”

By Anca Gurzu need a two-track approach: revision of a lack of coordination and a stronger European energy policy in the short sense of solidarity among member Interview with Sami Andoura, term in order address its well known states in event of a crisis. We know the senior research fellow, Jacques key shortcomings; and the energy union energy union will not bring about any Delors Institute to act as a booster of energy transition treaty changes. How do you see this in Europe, and as a catalyst for a new issue being reinforced? The European Commission has created model of society and economy based Yes, it’s true, the energy union is not high expectations about its flagship on industrial innovation and social about having a new treaty, a new insti- energy union project in recent months. inclusion. It should offer a qualitative tution or a European energy mix. It is With the final details to be unveiled at step-based approach. somewhere in the middle. the end of February, Europolitics spoke History has shown that European sol- to Sami Andoura, senior research fellow What do you think about the energy idarity is possible. Solidarity has been at the Jacques Delors Institute and union’s five dimensions? possible vis-a-vis the Russians and holder of the European energy policy No one knows so far what is really in Ukrainians in the supply of gas because chair at the College of Europe, for his the Commission’s energy union pro- we have adopted a regulation at EU views on the matter. posal ... but there are some ideas that level which is implemented at the are mainly articulated around five regional level by most stakeholders. What do you think has been innova- pillars. That is what we definitely need in the tive in the energy union debate so far I would say that the initial pillar field of electricity as well: a binding EU and the way the European Commis- approach is not the right one at this framework in the form of a regulation, sion has been presenting this future stage. Pillars look institutional in a way, which is implemented in a coordinated project? and as such they are not very flexible. and cooperative way regionally. If you look at the programme of Jean- What we need to avoid is a situation in This is solidarity for the energy union, Claude Juncker’s new Commission, it which we discuss whether there should not rhetoric: de facto solidarity that is quite clear that it has been able to be four, five or six pillars, and so on. needs to be offered through rules, seize the political momentum around Creating pillars at this stage is opening instruments, frameworks that are con- the energy union idea and make it one that door, and opening the door to limit crete and real, not just principles and of the key priorities for its new man- the debate as a shopping list. broad policies. date. It has also been able to reorgan- As for the five dimensions, the way But solidarity goes beyond security of ise internally around the energy union they are articulated does not cover all supply. Today, energy poverty needs a cluster. the necessary issues. Some dimensions real social policy in the field of energy, Another achievement is that it is no cover the whole issue, such as supply which goes much deeper than arti- longer a national project. It is a real security, solidarity and trust. Solidarity ficial tariff regulation that we have European project debated at EU level. and trust are needed everywhere not nationally. More people are facing just in the first pillar. Others cover what energy poverty today, not the other In recent months, Commission offi- is the responsibility of energy policy, way round. And energy poverty is also cials have said that the energy union such as the internal market for gas and a phenomenon to be addressed by our will not be a reinvention of the wheel, electricity. The second pillar, a com- development policies. but rather that it will bring elements pleted internal market is not a matter that we already know under one for the energy union, it is a matter for What do you think is the Commis- umbrella. EU energy policy, which needs to be sion’s biggest challenge with the They are right in saying that, because fixed. energy union? the energy union will not be created The risk is to bring further confusion Offering a tangible long-term project from scratch. On the contrary, it needs between EU energy policy and the for all Europeans. It means creating a to be based on the large number of energy union, which are distinct. Pil- lot of new opportunities for European strengths and achievements developed lars should come later when we have a companies, both inside and outside since 2007 at the European level in the clear vision and project for the energy Europe. But it is also about showing field of energy. union. Today, people know the pillars people that there are profits and wel- But we should be very careful that it is or dimensions, but not what the energy fare for them as well. The potential for not only repackaging existing instru- union is. democratising EU energy policy and ments and initiatives. If it really wants widening its governance is key. It would to have added value, it needs to be One of the issues we know will have be a way to tackle the growing issue of more than only EU energy policy. We to be tackled in the energy union is public acceptance. n

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No energy union without robust governance

By Anca Gurzu The EU must push its outstanding touch and non-legislative” Commission energy policies forward and clear up exist- approach in enforcing EU energy policy But member states are already at odds ing shortcomings over the next two years across the bloc. This is at odds with Ger- if it wants the energy union to be more many’s view, which in its own input later At first glance, the structure of the than a mere reshuffling of current prior- that month said energy union governance European Commission’s energy union ities, according to a report released on 27 based only on “a soft law process” would project appears to contain a little bit January by Notre Europe – Jacques Delors not be sufficient. for everybody. The initiative’s dimen- Institute. The report argues that the energy sions are well known: security of supply union must be tangible, moving beyond NO ANTI-RUSSIA PLATFORM based on solidarity and trust, completion speeches and declarations. Despite the challenge of moving EU of the internal energy market, modera- Arno Behrens, research fellow and energy policies forward, “we have achieved tion of demand, decarbonisation of the head of the energy division at the Brus- much more than we actually realised EU energy mix, and research and inno- sels-based Centre for European Policy since 2006,” building blocks which will vation. They aim to give the Union’s Studies (CEPS), shares that view. “One help carry the work forward, says Frank energy policy a new boost by focusing of the risks of the energy union is that Umbach, associate director of the Euro- on incomplete initiatives and on stronger the concept remains empty and that pean Centre for Energy and Resource integration between member states both the content remain incoherent – and if Security at King’s College London. “The internally and externally. that’s the case, progress will also be very Ukraine conflict has certainly enhanced One thing is certain: a strong political slow,” he says. the overall belief that we should fasten push is driving the energy union debate The governance mechanism that will be some of the policies we had already started but there are many challenges along the set up to guide the project’s implementa- implementing before,” he explains. way, notably on the governance structure tion, as well as achieving the 2030 energy “There are also much stronger polit- accompanying the project. and climate goals, will be a key element of ical connotations and implications for A leaked Commission document the process, according to experts. common energy foreign policy decisions, in November 2014 highlighted some “We have to be much harsher on what anchoring the EU in the international three dozen policy and regulatory steps, we monitor, what we insist on,” the EU’s arena, in particular as regards Moscow,” described as “quick wins,” to be taken energy policy chief, Maros Sefcovic, told Umbach adds. this year to move the energy union MEPs on 26 January. But the energy union should avoid project forward. While preliminary, the Member states are already sending clear becoming “an anti-Russia platform,” Beh- comprehensive document resembled a signals about what they would, or would rens stresses. “It should be much broader shopping list, highlighting both unfin- not, be ready to accept. A joint United than that. We need to take all energy risks ished business and upcoming legislative Kingdom-Czech Republic position paper into account when we speak about the measures. from early January is calling for a “light- energy union.”n

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European insurance sector begins its transformation

By Sophie Mosca fore meet the offer of competitors who ing an insurance contract for consumers will free themselves of superfluous assets will introduce greater competition in the The regulatory framework obliges in order to refocus on key jobs. There- sector and may explain the divestment stakeholders to rethink their business fore, Germany’s Heidelberg Leben pur- by CNP of its share in its Spanish subsid- model, above all in the distribution of chased life insurance assets from Sweden’s iary CNP BV in order to strengthen its insurance products Skandia in Austria and Germany and the presence in France. UK’s Chesnara took over the assets of the The insurance sector has fared better bankrupt Dutch financial services group, DISTRIBUTION during the crisis than the banking sector, ORD. According to Isabelle Monin Lafin, as witnessed by the stress tests that it was founder of the Paris law firm Astrée, the subjected to in December 2014. But it has NATIONAL LEGISLATION insurance distribution sector via inter- not been saved from regulatory changes “The major companies will certainly mediaries (brokers, general agents and at EU and national level, which are lead- try to develop in booming markets such as so-called bancassurance) who hold 57% of ing it to restructure. According to a survey Poland, in order to obtain greater volume the European insurance market is the most by Mergermarket, a company specialised and withdraw from other, more restricted likely target for recomposition in three or in mergers and acquisitions, and Towers ones” underlined Henri de Bruyne, chair- four years. To blame in particular is the Watson, this translates into an anticipa- man of Monitoring European Distribution revision of Directive 2002/92/EC on insur- tion by insurance companies of having of Insurance (MEDI), an observatory for ance mediation (DIA II), which anticipates to divest more activities over the coming the insurance market and its distribution. more constraints for these intermediaries three years than in the past. But, for him, “this restructuring move- and the transparency of remuneration for At the forefront of the regulatory con- ment will remain modest: as the stress tests these products. “As we can already note in straints is Directive 2009/138/EC (Sol- were good, companies are not interested Belgium and the United Kingdom, which vency II), which should be transposed in destroying their toy”. As the European have already transposed this text that has not by 1 January 2016 and which imposes market is still very fragmented, with dif- yet been formally adopted. In the United on companies strengthened solvency to ferences between countries and branches Kingdom, this market lost 23% between ensure their long-term commitments. of activity, adjustments will be made with the end of 2011 and the end of 2012, the This text should lead to a recomposition regard to the constraints of national legis- date of entry into force of its provisions”. of the sector for those exposed to long- lations. For example, in the United King- It anticipates a real “structural overhaul term risks (life insurance and civil respon- dom, the abolition of the legal require- and strong specialisation“ elsewhere in sibility above all), where they will need to ment to contract a life annuity pension led Europe, perhaps on the Spanish model in provide more capital. Certain groups will to the merger between the number two in silos distinguishing the sale of insurance therefore seek to purchase assets in order life insurance, Aviva, and its competitor, with advice from that without any advice. to diversity the risks on their books, con- Friends Life, announced in December Without excluding the fact that capital siders Martin Membery, a lawyer from 2014 for €7.1 billion. In France, the law injection by the European Central Bank Sidley Austin in London. They will there- facilitating the possibility of terminat- may “change the situation”, the insurance In brief

Pittella on TTIP The leader of the European Parliament’s Socialists and Democrats (S&D) group has indicated that he is amenable to some kind of investor-state dispute settlement (ISDS) mechanism in the Transatlantic Trade and Investment Partnership (TTIP). Speaking to Europolitics in Washington on 30 January after he met US Trade Representative Michael Froman, Gianni Pittella said “the ISDS - as is - is not acceptable for us” because it excludes the judiciaries from any oversight. But Pittella was open to crafting an ISDS “that guarantees the certainty of the applicable law” and ensures no lowering of “consumer, labour, health and environmental standards”. On the negotiating timetable, he hoped enough progress would be made in 2015 for agreement to be reached in 2016. ”TTIP will undoubtedly benefit both sides of the Atlantic” by increasing GDP by between 2% and 4%, he said. For TTIP to be ratified by Parliament, S&D support will be very important, if not essential.

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Commission to update maritime transport strategy

By Isabelle Smets Recent maritime accidents could upon boarding, which would then motivate the Commission to launch “allow the crew to find passengers” in A public consultation has been initiatives on maritime safety. Fotis case of an emergency. launched, and new initiatives on Karamitsos, director of maritime trans- Referring to another maritime acci- maritime safety could follow port at DG MOVE, hinted at this dent, in which the German container recently when speaking to the Commit- ship MSC Flaminia caught fire in The European Commission has tee on Transport (TRAN) at the Euro- mid-Atlantic in July 2012, Karamit- opened a consultation, which will last pean Parliament. “We want to examine sos said that the Commission was still until 22 April, on a mid-term review of the current legal framework, to check working on the issue of places of refuge the EU’s maritime transport strategy, that it is adequate,” he said. for ships in distress, and may publish which was adopted in 2009 and will Several passengers were killed on 28 guidelines for maritime authorities. remain in force until 2018. At the mid- December 2014 when a fire broke out To recall, the Flaminia caught fire some term point, the Commission is particu- on the Norman Atlantic, a ferry pro- 1,000 nautical miles off the French and larly concerned over obstacles encoun- viding service between the Greek and British coasts, and was adrift in the mid-At- tered when accessing third-country Italian coasts. Survivors highlighted a alantic for several weeks before it was markets, and in ensuring fair competi- lack of respect for onboard safety rules given permission to enter German waters tion with these. It also wants stakehold- among the crew. In the TRAN commit- (Flaminia was flying the German flag). It ers’ opinions on the need to reduce the tee, Karamitsos said that legislation on was refused permission by France and the sector’s environmental impact (perhaps passenger lists should “eventually” be UK. At the time, TRAN criticised these with more promotion of alternative revised, and measures should be taken countries for not taking responsibility for fuels), and on the efficiency of ports, to facilitate the location of persons on the ship, and asked the Commission pres- attractiveness of the profession and board. He mentioned the idea of giving ent proposals to amend EU legislation to maritime safety. passengers bracelets fitted with chips oblige countries to assist in such cases. n

Committee of inquiry: Compromise solution in the offing?

By Ophélie Spanneut time,” say his aides. It is now Schulz who is proponent. In any case, MEPs’ powers of cause for concern among the most alarmist inquiry are restricted and the sole interest The group leaders may decide to supporters. Never enthusiastic over the idea, of the committee of inquiry is its political set up a special committee on tax he may attempt to argue in favour of a “spe- weight and media impact. n avoidance instead cial” committee, Europolitics has reason to believe. In addition to arguments on the Greens amend mandate The group chairs at the European Parlia- legality of the mandate, which are confusing, It is a European peculiarity that, to ment are expected to come to a decision, the EP president can take advantage of the set up a committee of inquiry on tax on 5 February, on whether or not to set up a political context of the large groups support- rulings, the Greens had to invoke committee of inquiry on tax avoidance. Par- ing the committee of inquiry only due to the infringement of the duty of honest liament’s legal service has already validated insistence of a minority of their members. As cooperation between member states the 192 signatures of MEPs. Its analysis of they did with allegations of illegal transport (Article 4.3 TEU) and state aid rules the mandate will be delivered to EP Presi- and detention of CIA prisoners in Europe, (Articles 107.1 and 108 TFEU). But dent Martin Schulz in time for the discussion as well as organised crime, MEPs may put they have now found a tax provision. with the political group leaders. The Greens in place a committee with a 12-month man- The Greens have learned that under collected signatures among their own mem- date. It has the major advantage of having a a 1977 directive, reiterated in 2011 bers and the EUL, but also from EPP, S&D less provocative title than does a committee of (2011/16/EU, Article 9), the member and ALDE members of Parliament. So after inquiry. With this solution, everyone would states must engage in spontaneous losing control over part of their troops, the emerge with their head held high and the exchanges of information on tax rul- chairs of these groups had to resign them- legal service would be reassured, according ings. They have always abstained selves to revising their initial position. Gianni to a senior official. The large groups will be from doing so, however, as revealed Pittella officially supports the initiative on able to argue that MEPs are looking towards by a confidential Council document, behalf of the S&D as does Manfred Weber the future rather than the past while reject- despite the Commission’s warnings (EPP), albeit reluctantly. Weber will not “put ing business as usual and protecting Jean- and the non-binding nature of these obstacles in the committee of inquiry’s path” Claude Juncker. The Greens have to realise provisions. but continues to think that “it is a waste of that the media impact is the same, argues a www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 5022 Tuesday 03 February 2015 11

Greece: Commission may “reconsider” Troika’s involvement

By Jorge Valero sels on 4 February. Unnamed Commission have elicited a cautious response from the sources have told the German newspaper national capitals. German Finance Minister Athens’ intention to cancel talks with Handelsblatt that the EU executive’s wish is Wolfgang Schäuble said that the participation the Troika is expected to be on the “to find an alternative [to the Troika] quickly”. of the three institutions “cannot be changed”. agenda of the talks between Juncker EU officials told Europolitics that the abo- Spain’s Minister for European Affairs, Ínigo and Samaras on 4 February lition of the Troika would require lengthy Mendez de Vigo, said that “there has to be discussions with numerous other institu- someone to speak to the government to check The negotiations between Greece and its tions and the eurozone partners. The same whether they meet their goals, as the Troika European creditors are off to a troubled start sources added that the priority now is to functionaries do”. n as the two sides´ positions remain distant know what Tsipras´ “concrete plans” are for when it comes to the outstanding reforms in the weeks to come before offering an “olive the country and the possibility of writing off branch” to Greece. One week after win- Parliament calls for EU body part of the Greek debt (176% of GDP). ning the general elections in Greece, the Finance Minister Varoufakis recalled In order to broaden the scope of the talks to intentions of the SYRIZA-led government the report approved by the European facilitate an agreement, the European Com- remain unclear for the EU institutions and Parliament last year to buttress his mission appears ready to consider Greece´s the member states alike. The signals coming offensive against the Troika. In that rejection of any further dealings with the out of Athens remain mixed and perplexing. report, Parliament stated that “the Troika. Bringing together the Commission, After meeting with Eurogroup President European institutions have acquired the European Central Bank (ECB) and the Jeroen Dijsselbloem, Varoufakis cut ties the necessary know-how to design International Monetary Fund (IMF), the with the Troika and announced that Greece and implement them by themselves” Troika is no longer considered a valid inter- would not request an extension of its bailout and any future involvement of the locutor by Athens, Greek Finance Minister programme, which is due to expire on 28 IMF would be “strictly necessary” Yanis Varoufakis said on 30 January. February. The Greek government has yet to as a marginal lender only. Mean- A Commission spokesman recalled, on 2 implement major reforms agreed previously. while, the ECB should play a role of February, that President Jean-Claude Junck- In a statement, Tsipras attempted to calm the a “silent observer”. In the longer run, er´s political guidelines referred to the need waters following Varoufakis’ announcement. the legislators said that a European to “reconsider the instrument of the Troika”. SYRIZA´s leader stressed that he was “abso- Monetary Fund should take over the Among the priorities for his mandate, Juncker lutely confident that we will soon manage to Commission’s role in designing and aims to “review the Troika and make it more reach a mutually beneficial agreement, both managing the programmes. A Parlia- democratic, more parliamentary and more for Greece and for Europe as a whole.” “It ment spokesperson told Europolitics political”. However, the Commission spokes- has never been our intention to act unilater- that President Martin Schulz agrees man refused to comment on whether the ally on the Greek debt,” he added. The Com- with the conclusions of the report, process of dismantling the Troika would be mission welcomed Tsipras´ effort, which it although this does not imply the need discussed with Greek Prime Minister Alexis described as a “starting point”. Meanwhile, “to abolish the Troika tomorrow”. Tsipras, when he meets Juncker in Brus- Greece´s calls for dismantling the Troika

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“Riga has to show that the Eastern Partnership continues”

By Brian Beary that sense, it was a bit of a mistake before to with the EU economy. But I do not believe have taken a ‘one size fits all’ approach. that Riga is going to become a ‘European Interview with Edgards Rinkevics, perspective’ summit. We have very different minister of foreign affairs, Latvia Armenia, while it has joined the Eurasian views on this within the EU. I personally Economic Union with Russia, says it would love to see the European perspec- In Washington to meet with top US wants to conclude some form of associa- tive set out but I also see the mood. That officials and headline a conference on the tion agreement with the EU. Given that said, Riga cannot close the door [to full transatlantic strategy for Eastern Europe, a country can’t be part of two different membership – Ed]. Latvia’s Foreign Minister Edgars Rinkevics customs areas, what can the EU do with spoke exclusively to Europolitics about his Armenia? Do you see a path for long-term EU-Rus- hopes for the 21-22 May EU-Eastern Part- Both the EU and Armenia need to do a sia cooperation in a Russia led by nership summit in Riga, which will chart ‘scoping exercise’ to see how far the pro- Vladimir Putin? the future course of the policy. visions we had in the draft association It’s not so much about who leads which country. It’s about Russia respecting You say you want a more individualised national law and order. The annexation of approach to the six target countries. But Crimea and what is happening in Eastern when you look at a country like Belarus, Ukraine have changed dramatically and still led by a dictator with very little free- very negatively cooperation between the dom of expression, what concretely can EU and Russia. Business as usual is not the EU do with it? possible anymore. We want first of all to see First of all, it is the choice of Belarus how a normalisation of the situation in Eastern © US Latvian Embassy much it wants to engage with the EU. We Edgars Rinkevics Ukraine. I cannot exclude more sanctions have had ups and downs in our relations. If or tougher sanctions if the situation gets we look at the Belarus’ current stance vis-à- agreement [which Armenia abandoned worse – and it is worsening. vis Ukraine, we see some positive small steps in September 2013 after pressure from so we should prepare a more individualised Russia – Ed] correspond to the obligations So it all hinges on what Russia does in approach. That does not mean we forget Armenia has under the Eurasian Economic Ukraine? about the dialogue on human rights and Union. I support Armenia’s will to initiate a Ukraine is the key to further relations political freedoms. But I think we can more new agreement that sticks as much as pos- between the EU and Russia. n intensively engage on those issues if we have sible to the already-agreed chapters of the a more intense political dialogue. We could association agreement that we didn’t sign. also initiate a visa liberalisation programme So the Commission and Armenia will do because that would probably be our most an analysis and report back on what could Eastern partners’ views powerful tool. be preserved. My vision is for the review pro- At the 30 January conference co-or- cess to be completed by the Riga summit so ganised by the Latvian EU Presi- With Azerbaijan, there is mutual inter- we can initiate negotiations at Riga. Here dency and the Atlantic Council think est in cooperating on energy. But just we see the key difference between the EU tank in Washington, representatives because it’s convenient to do deals and Russia: we don’t force countries to sign of each Eastern Partnership country on energy, should you cast aside the association agreements. apart from Belarus spoke. Georgia, authoritarian nature of the regime there? Moldova and Ukraine voiced frus- You hit upon a fundamental problem of the Georgia, Moldova and Ukraine want the tration over EU leaders’ failure to EU. We still somehow presume that all six EU to give a signal that there is a prospect explicitly say they have a perspective countries want to become either EU mem- of full EU membership. They say that not for full membership. An Azeri parlia- bers or EU-aligned. It’s not the case. But we doing this makes them vulnerable to Rus- mentarian said “everything is going can use the Eastern Partnership to engage sia’s designs. Will we see a change of heart well” with the Eastern Partnership, with Armenia, Azerbaijan and Belarus as at Riga? singling out visa and readmission much as they want, while also putting on Riga has to show that the Eastern Partner- agreements, and educational and the agenda issues that are important for us ship continues. We are going to review the cultural programmes as success like basic liberties, including media free- first results of implementing the association stories. Armenia’s ambassador in dom and political and human rights. But agreements, try to push for visa liberalisa- Washington said his country needed we should not delude ourselves that we can tion with those countries that have met all the EU’s technical assistance to use leverage with countries that do not have the criteria and robust assistance packages “modernise our society”. the ambition to become an EU member. In to make their economies more compatible

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German minimum wage: Moratorium for hauliers

By Sophie Petitjean ern European countries, the German 96/71/EC. This text – clarified by 2014/67/ authorities agreed to suspend the measure EU – lays down core rules (including Due to backlash from Eastern Euro- temporarily. compliance with the minimum wage in pean states, the German government Poland applauded the decision. “Our the host country) for situations where a temporarily suspends its application action through bilateral contacts and at worker is assigned temporarily to perform to hauliers in transit EU level brought the hoped-for results. a defined service in a member state other We are going to strive to ensure that this than the one where he habitually works. It did not take long for backlash to matter is resolved in a manner acceptable For the IRU, Directive 96/71/EC was develop against Germany’s minimum to all the parties,” reacted Infrastructure enacted to deal with sectors other than wage. Barely a month after its introduc- and Development Minister Maria Wasiak. road transport. “The scope of this direction and under pressure from low-wage The International Road Transport Union tive does not cover drivers in transit in a countries, Germany decided to exclude (IRU) also praised the German govern- country, who deliver goods from one place road transport operators crossing its ter- ment’s decision, while noting that the to another or who collect goods in or out- ritory from the list of beneficiaries until “moratorium should be extended and side a country,” explained Jan Nemec, in it obtains “clarification of the European remain in place until full legal clarity is charge of social affairs at IRU. legal issues”. German Labour Minister established, including for bilateral inter- For the European Trade Union Con- Andra Nahles made the announcement national transport, and until the admin- federation (ETUC), road transport oper- after his 30 January meeting with his Polish istrative burden for operators has been ators cannot on principle be excluded counterpart, Wladyslaw Kosiniak-Kamysz. reduced”. from the posting directive. “Working Under the new German regulation conditions in cabotage are very particu- (mindestlohngesetz), from 1 January POSTING VS TRANSIT? lar and specific EU rules would be wel- 2015, all workers (including employ- It is now for the authorities to determine, come. Meanwhile, national lawmakers ees in transit in Germany) must be paid among other things, whether a haulier have to assume responsibility for protect- wages of at least €8.50 gross per hour. But crossing the country constitutes a posted ing workers,” said Sévérine Picard, legal after a storm of protest in several East- worker within the meaning of Directive affairs adviser at ETUC. n REAL CRIMES. REAL VICTIMS. REAL JUSTICE. “Coordinated action and greater international cooperation will avoid a fragmented and less effective approach to combating terror on European soil.” Michèle Coninsx, President of Eurojust

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EU agenda

Interparliamentary Conference Pototschnig, Director of ACER. Tuesday 3 February UNDER ARTICLE 13 OF THE TREATY nMaros Sefcovic receives Konrad Mizzi, ON STABILITY, COORDINATION AND Minister for Energy of Malta. GOVERNANCE IN THE ECONOMIC AND nMaros Sefcovic meets Étienne Davignon, EUROPEAN MONETARY UNION Advisor to the Chairman and Chief 3 – 4 February, Brussels Executive of GDF SUEZ, Brussels. PARLIAMENT nJyrki Katainen receives representatives of THE PRESIDENT’S DIARY INFORMAL SOCIAL PROTECTION European Bioeconomy Alliance. 09:00 - 16:00 Brussels COMMITTEE (SPC) nJyrki Katainen receives Beate Merk, n09:00 Chairing of the Plenary: The 2 – 3 February, Riga Bavarian State Minister. European Economic Governance nGünther H. Oettinger organises a framework: stock taking and future roundtable on copyright with stakeholders challenges (angle of the discussion – “the right balance n11:30 Meeting with Valeriu Zgonea, EUROPEAN in copyright policy”). President of the Chamber of Deputies of nGünther H. Oettinger receives Romania - Paul-Henri Spaak Building, 9th COMMISSION representatives of BEUC - Bureau floor, Grand Salon Protocolaire TRAVEL AND VISITS Européen des Unions de Consommateurs. n15:00 Meeting with delegates of The nPresident Jean-Claude Juncker gives a nCecilia Malmström receives the Youth 20 from France, Italy, Germany speech at the EP European Semester. European Ombudsman, Emily O’Reilly. and the United Kingdom - Paul-Henri nPresident Jean-Claude Juncker hosts a nNeven Mimica signs the National Spaak Building, 9th floor, Grand Salon ceremony in testimony of Jacques Barrot. Indicative Program (NIP) with the Protocolaire nFrans Timmermans in Estonia:meets President of Kiribati, Anote Tong. with Taavi Rõivas, Prime Minister of nNeven Mimica receives David Vernon, PARLIAMENTARY COMMITTEES Estonia; meets with Members of the EU CARIFORUM coordinator. COMMITTEE ON EMPLOYMENT AND Affairs, Foreign Affairs and Constitutional nKarmenu Vella in Paris: attends the SOCIAL AFFAIRS Committees of the Estonian Parliament; 2015 edition of the Euromaritime and 11:15 - 13:15 Brussels, Paul-Henri participates in the public debate “Europe Eurowaterways trade show. Spaak, P1A002 Today” alongside Toomas Hendrik Ilves, nVytenis Andriukaitis delivers a speech at •European Parliamentary Week - The President of Estonia. the Food Innovation Summit, Brussels. European Semester Cycles 2014 - nFederica Mogherini, Kristalina nVytenis Andriukaitis receives the Minister 2015: Interparliamentary Committee Georgieva, Karmenu Vella and Neven for Climate and the Environment of Meeting organised by the Committee on Mimica receive Jan Eliasson, Deputy Sweden, Åsa Romson. Employment and Social Affairs (EMPL) Secretary-General of the United Nations. nPierre Moscovici in Berlin (2-3/2): meets nFederica Mogherini participates in the with Bundestag CDU/CSU Members Working Dinner with S&D Group Bureau of Parliament of budgetary and financial and S&D Group-linked Commissioners, affairs committee; meets with Bundestag COUNCIL Brussels. SPD Members of Parliament of budgetary nAndrus Ansip participates in the S&D and financial affairs committee; meets OF MINISTERS working group on Digital Agenda at the with Frank-Walter Steinmeier, Minister for POLITICAL AND SECURITY COMMITTEE European Parliament in Brussels. Foreign Affairs. Brussels nAndrus Ansip meets Inara Murniece, nChristos Stylianides participates in the Speaker of the Latvian Parliament, at the regional consultations ahead of the World EU-US JUSTICE AND HOME AFFAIRS European Parliament in Brussels. Humanitarian Summit, in Budapest, SENIOR OFFICIALS nAndrus Ansip receives Michael Combs, Hungary. 3 – 4 February, Riga CEO of Alcatel Lucent. nPhil Hogan delivers the opening speech nAndrus Ansip receives European and at the Food Innovation Summit,Brussels. CONFERENCE ON INCLUSIVE LABOUR Chinese CEOs of the ICT sector. nJonathan Hill is in London: attends MARKETS nMaros Sefcovic receives representatives evidence session at the House of Lords 3 – 4 February, Riga from The Green10, ten environmental EU Economic and Financial Affairs Employment Committee (EMCO) and organisations and networks. Committee; meets with John Cridland, Social Protection Committee (SPC) nMaros Sefcovic receives Alberto Director-General of the Confederation of www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 5022 Tuesday 03 February 2015 15

British Industry (CBI) and John Nelson, - to present and promote some good 14:30-18:00 Chairman, Lloyd’s of London. practices found in the Member States REX 411 - 2nd meeting of the Study Group nVioleta Bulc receives representatives visited (Finland, Romania, Spain and on Investor protection, JDE60 of the European Transport Workers’ Bulgaria); Federation (ETF). -to give the partners an opportunity 15:30-17:30 nElzbieta Bienkowska receives Axel Eggert, to voice their comments, ideas and Inter-faith dialogue, JDE62 Director General of EUROFER and CEOs recommendations and to be heard at EU of the steel industry, Brussels. level. nVera Jourova receives Wojciech Postulski, Venue: EESC VMA3 Secretary General of the European Judicial CONFERENCES Training Network. Public Hearing nTibor Navracsics receives Rabbi INVESTOR PROTECTION AND SEMINARS Menachem Margolin, General Director of Brussels Finance Watch conference the European Jewish Association. The hearing will gather civil society THE LONG TERM FINANCING AGENDA – nTibor Navracsicsparticipates at a panel representatives who will present their THE WAY TO SUSTAINABLE GROWTH? discussion “From Veszprém to Brussels as a position towards investment protection 4 February, Brussels politician” at the Balassi Institute, Brussels. and Investor to State Dispute Settlement On jobs and growth, what is good nMargrethe Vestager receives Philippe (ISDS) provisions in the current process securitisation, collateral use and the Varin, President of Cercle de l’Industrie. of elaboration of the EU investment financial system. High level speakers nCarlos Moedas receives Kit Malthouse, policy, which was added as an exclusive including Jonathan Hill, Martin Wolf and Deputy Mayor of London for Business and competence of the EU since the Lisbon others. Enterprise. Treaty. The hearing will focus on the Venue: The Square, 09h30 - 17h30 following issues: Programme and registrations at http:// -How to best protect investors’ rights www.finance-watch.org/our-work/ without undermining the capacity of States events/986-long-term-financing- COURT OF JUSTICE to regulate in the public interest? conference-february2015-en 09:30 -Is the EU competence on investment a Third Chamber chance to reform the ISDS system? THE 2ND ANNUAL EU-US TRADE nOpinion C-5/14 Principles of Community -Are there alternatives to ISDS and are they CONFERENCE law sufficient to protect the rights of foreign 5 February, Brussels Kernkraftwerke Lippe-Ems investors? The conference will feature a high-level -How the results of the EU Public plenary sessions and four sector-specific 09:30 Consultation on Investors Protection working lunches, focusing on: Grand Chamber and ISDS conducted by the European • Agriculture & Food nHearing C-67/14 Citizenship of the Commission can impact the shaping of the • Energy & Transport Union EU investment policy? • Pharmaceuticals & Chemicals Alimanovic -What role the civil society should play • Digital & ICT in process of defining the EU investment The Transatlantic Trade and Investment 09:30 policy? Partnership Where now for the EU-US Grand Chamber Registration: http://www.eesc.europa. trade deal? nJudgment C-172/13 Taxation eu/?i=portal.en.eesc-person-contact- www.ttip-conference.eu Commission v United Kingdom form&d=247 FFTH CONFERENCE 2015 09:00-18:00 10 - 12 February, Warsaw A New Generation 4 a New Europe, DE60, The FTTH Conference of the FTTH ECONOMIC AND 61, 63 Council Europe is the biggest FTTH- related conference in the world. It SOCIAL COMMITTEE 10:00-13:00 discusses hot topics of fibre roll-out in Conference 145th ECO Section meeting, JDE62 Europe: FTTH in Central and Eastern BETTER INCLUSION OF THE ROMA Europe, fibre-enabled services including COMMUNITY THROUGH CIVIL SOCIETY 13:00-15:00 eHealth, eGovernment, etc.; financing INITIATIVES Participation of Mr Zufiaur - Working of FTTH networks; marketing of FTTH Brussels lunch between the EuroLat Assembly of the networks and take rates; the role of FTTH Objectives of this final conference: EP and the EESC, Brussels in smart cities and regions; innovative - to present the final report on the work solutions for fibre networks… carried out throughout the year by the 14:30-16:30 EESC’s exploratory coordination group to Coordination meeting - the European Year relevant stakeholders; of Development (2015), JDE 2249

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OPEN FORUM Europe and the human highway

By Karim Michel Sabbagh (*) But the headlong rush for video qual- A hybrid solution can be effective ity could leave a majority of people almost immediately, removing most The most important challenge of our around the world abandoned, denying of the weight of the anticipated global times is to connect everyone on this them the benefits of those online. A traffic from aging terrestrial backbones planet. politically devastating fault line could and the aching joints of fixed access Why? Because universal connection happen, sinking new wells of disillu- networks. We can create an inclusive through the digital highway mix of infrastructure, com- will give us the earliest and bining the unique strengths best chance of dealing with of several technologies in the recognised European a hybrid formulation for and worldwide challenges: everybody’s use and benefit. protecting the environment; This has to start with the conserving energy; reducing optimisation and organisa- poverty, and building access tion of spectrum, an essential to social justice, educa- resource analogous to energy, tion and political liberty for water or food, due to its huge people everywhere. role in operations and capac- The emerging digital high- ity facilitation. Satellites con- way is composed of three tribute unparalleled broad- forces that are now moving cast spectrum efficiency to in the same direction. First, the inclusive technology mix consumer pull, especially needed, with 25 times better from the newest “con- spectral efficiency than mobile nected” generation, needing networks because they carry to be online and entertained 50 times more consumed dig- always and everywhere. ital content than all mobile Second, technology push, networks put together. with an increasing range of In Western Europe, a hybrid affordable consumer elec- terrestrial-satellite model tronic devices. Third, the could save up to one third of realisation of the enormous the investment required and social and economic benefits distribute up to twice as much of digitisation in Europe. content per euro invested. But the digital highway is Our challenge is to create a of no consequence without universal digital highway that is the social and economic scalable, sustainable, flexible, benefits that it can produce. transparent and ecological. We For the highway becomes should stop looking for the next © SES human only when connec- Karim Michel Sabbagh big infrastructural development tivity is ubiquitous, universal, and start to resolve the most affordable and reliable, and when users sion, depression and dispossession. urgent of our global problems, that of have the skills and the insight to ensure The digital divide must disappear universal connection. Only then can we that people must be the primary bene- but there is not enough capacity in the quickly and efficiently resolve the rest of ficiaries. To do this, we need to take a fixed networks for the demands even the challenges on our human highway. n moment to think outside the decoder. of the near future, the upgrades nec- Over 70% of today’s connectivity essary would cost hundreds of billions (*) Karim Michel Sabbagh is president and usage is video; in two years it could be of dollars in road repairs, cables and CEO of SES, the world-leading satellite over 80%. construction. operator

Europolitics is offering a platform for outside comment and opinion by opening a regular Open forum section. All contributions are welcome, up to 4,500 characters (including spaces). They should be sent in to [email protected] and, if possible, accompanied by a translation into English or French along with a photo of the author in jpg format (300 dpi). The final decision on whether to publish these contributions or not remains solely with Europolitics.