Report of the Department of Enterprise, Trade and Employment to the Oireachtas Under Section 2 (5) of the European Union (Scrutiny) Act 2002 for the period from July to December 2020 January 2021 www.enterprise.gov.ie 1 Table of Contents Introduction .............................................................................................................................. 3 Part I – Developments in the EU ............................................................................................ 3 1. Competitiveness Council (Internal Market, Industry, Research and Space)......... 3 1.1. Meetings of the Competitiveness Council (Internal Market and Industry) ..... 4 1.1.1. Competitiveness Council (Internal Market and Industry) -Video Conference, 18 September 2020 .................................................................................. 4 1.1.2 Competitiveness Council (Internal Market and Industry) -Video Conference, 23 October 2020 ...................................................................................... 4 1.1.3 Competitiveness Council (Internal Market and Industry) -Video Conference, 19 November 2020 .................................................................................. 5 1.2. Meetings of the Competitiveness Council (Research and Innovation) ............. 6 1.2.1 Competitiveness Council (Research) - Video Conferece – 21 July 2020 ........ 6 1.2.2. Formal Competitiveness Council (Research & Innovation) – Brussels, 29 September 2020 ............................................................................................................ 6 1.2.3. Competitiveness Council (Research) – Video Confernce – 27 November 2020................................................................................................................................ 7 1.2.4. Competitiveness Council (Space) -Video Conference - 20 November 2020 2. Foreign Affairs Council (Trade) ................................................................................. 8 2.1. Meetings of the Foreign Affairs Council (Trade)................................................... 8 2.1.1. Informal Foreign Affairs Council (Trade) –21 September 2020 ............... 8 2.1.2. Foreign Affairs Council (Trade) - Videoconference – 9 November 2020 . 8 3. Portuguese Presidency of the Council of the EU (January – June 2021) ............... 9 3.1. Schedule of Meetings during the Portuguese Presidency ...................................... 9 3.2. Overview of key issues likely to arise in relevant Councils during the Portuguese Presidency ................................................................................................... 10 Part II - Oireachtas Scrutiny Proposals July – December 2020 ........................................ 13 2 Introduction Under the terms of the European Union (Scrutiny) Act 2002, Ministers submit Reports to the Oireachtas every six months on developments at European Union level in their area of responsibility. This Report summarises the key legislative and policy developments within the remit of the Department of Enterprise, Trade and Employment during the six-month period July to December 2020 during which time Germany held the Presidency of the Council of the European Union. This report has two parts. The first part sets out the principal developments in the policy areas which fall within the responsibility of this Department at EU level and provides an overview of the incoming Portuguese Presidency. The second part provides an update on the EU legislative proposals for which information notes were submitted to the Oireachtas Joint Committee on Enterprise, Trade and Employment under the European Union (Scrutiny) Act 2002. Part I – Developments in the EU The COVID-19 pandemic and its impact on the economy and on travel dominated the German Presidency which had practical consequences for the holding of Council meetings and the content of their agendas. The policy areas which fall within the responsibility of the Department of Enterprise, Trade and Employment at EU level are in the main dealt with by the Competitiveness Council under the formations of Internal Market and Industry, Research and Space, the Foreign Affairs Council under the Trade formation and the Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) under its Employment formation. The Employment, Social Policy, Health and Consumer Affairs Council under the heading of Employment transferred from the Department of Employment Affairs and Social Protection to the Department of Enterprise, Trade and Employment with effect from 14 October 2020. The Department of Social Protection will report on EU developments during the six month report period in its Report to the Oireachtas. The Department of Enterprise, Trade and Employment will report on EPSCO in its Employment formation in the next report onwards. In relation to the Research formation of the Competitiveness Council, policy responsibility for Research transferred from the Department of Enterprise, Trade and Employment to the Department of Further and Higher Education, Research, Innovation and Science on 1 January 2021 and therefore EU developments from 1 January 2021 onwards will feature in that Department’s Report to the Oireachtas. Competitiveness Council in its Space formation remains within the Department of Enterprise, Trade and Employment. 1. Competitiveness Council (Internal Market, Industry, Research and Space) Due to COVID-19 restrictions on meetings and travel, all the Competitiveness Councils during the German Presidency were held by video conference. Debates in those Councils were focussed on how best to deploy industrial and internal market policy instruments to both address the public health crisis and drive economic recovery. As the meetings were not in person, they were not considered formal decision making Councils. In that situation, decisions and Council Conclusions arising from those discussions may be taken and adopted 3 subsequently by written procedure, by Ambassadors in COREPER, or at another Council formation, meeting in person in Brussels. 1.1. Meetings of the Competitiveness Council (Internal Market and Industry) The Competitiveness Council (Internal Market and Industry) met on three occasions during the period July to December 2020. - Competitiveness Council by Video Conference – 18 September 2020 - Competitiveness Council by Video Conference – 23 October 2020 - Competitiveness Council by Video Conference – 19 November 2020 1.1.1. Competitiveness Council (Internal Market and Industry) - Video Conference, 18 September 2020 Ireland was represented at the September Council by An Tánaiste and Minister for Enterprise, Trade and Employment, Mr Leo Varadkar, T.D. Council was chaired by Mr Peter Altmaier, German Minister for Economic Affairs and Energy. The Commission was represented by Ms Margrethe Vestager, Executive Vice President for A Europe Fit for the Digital Age and by the Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, Mr Thierry Breton. On the basis of a Presidency paper with the theme of “Deepening Single Market for a strong recovery and a competitive, sustainable Europe”, Ministers debated which components of the Commission’s ‘March 2020 package’ and its Action Plan for better implementation and enforcement of Single Market rules, were particularly adequate to effectively strengthen the Single Market, and to be prioritised in order to handle the impact of the COVID-19 crisis and support the speedy recovery of the economy. Ministers agreed on Council Conclusions on deepening the EU Single Market, which were later adopted by Council on 21 September. There was broad acknowledgment of the need to restore swiftly the integrity of the Single Market by removing all temporary derogations put in place by individual Member States during the COVID-19 crisis. The Single Market Enforcement Task-force (SMET) was mentioned as the main tool for identifying unnecessary barriers to the cross-border free circulation of goods and services. 1.1.2 Competitiveness Council (Internal Market and Industry) -Video Conference, 23 October 2020 This Council meeting was planned as the Presidency’s Informal Council so there was no change to its status as a result of moving to VC format. Ireland was represented by Minister of State for Trade Promotion, Digital and Company Regulation, Mr Robert Troy, T.D. Council was chaired by Mr Peter Altmaier, German Minister for Economic Affairs and Energy. The Commission was represented by Ms Margrethe Vestager, Executive VP for A Europe Fit for the Digital Age and by the Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, Mr Thierry Breton. 4 The focus of the meeting was on EU Industrial Policy and began with keynote addresses by Joe Kaeser CEO Siemens and by Dr Markus Steilmann, CEO Covestro. On the basis of a Presidency Paper focussing on “EU industry as an engine for economic growth and recovery in the EU: delivering on innovation for the green & digital transition and gaining from a level playing field”, Ministers were invited to exchange views on how EU industrial policy can create the right framework conditions for innovation in Europe so that industrial competitiveness can be secured in the long term. There was widespread agreement that the Single Market plays a key role in the success of Industrial Policy and that Industrial Policy must be a driver in advancing the twin transitions to green and digital. Ministers also addressed the Commission’s White Paper on foreign subsidies. The majority