Welcome to Better Europe’s weekly update on EU Affairs.
NGOS STAYING ALIVE AS EU BUDGET BATTLE UNFOLDS
We’ve said it before: it only takes one seven-year ‘rollover’ of the joint EU debt issued in 2020 as part of the NextGenEU Covid recovery strategy to establish a firm precent and consider the EU as a transfer union. Federalists rejoice — it is now OK for the EU to have its own debt, which will theoretically be repaid one day, when there are sufficient ‘own resources’. Lost us? Well, French President Macron openly asked why on earth one would actually want to insist on repayment of the EU’s financial market loans, which represent less than seven percent of the EU’s 2-billion-euro seven-year budget. Something that was unimaginable in 2017 when the frugal Dutch Eurogroup Chair Jeroen Dijsselbloem had to apologise when said he had no solidarity for southern EU countries who had spent their money on “Schnaps und Frauen” (booze and women). Less than a decade and exactly one global pandemic later, the idea of a joint debt has become totally mainstream (well, except for party pooper Merz of course). Yes, we can have a joint debt, yes, we can collectively decide what it is spent on, and no, there is no reason to insist on a quick repayment. But if the EU budget can be enlarged through debt, can this include funding for local and regional authorities implementing the EU’s LIFE programme, as well as those annoying NGOs who act as a conscience for lawmakers? If you ask the Parliament, the answer is yes. And so, in plenary this week MEPs put in a request for 3.39 billion euros of continued standalone funding for the LIFE programme, in a move that firmly challenges the Commission’s decision to “streamline” the spending into two mega-funds. Parliament’s message is a massive sign of support for Europe’s climate and nature NGOs, with some worrying they could become a bargaining chip in the forthcoming negotiations between the institutions. But for now, it’s staying alive.
REUSABLE KITCHEN CUTLERY IS THE NEXT BIG THING IN SUSTAINABILTIY
EFRAG, the Belgian non-profit association set up to advise the European Commission on the standardisation of financial reporting and, since a few years, also on sustainability reporting, has decided to test its voluntary SME sustainability reporting tool on its own operations. We thought we had seen it all — banks who don’t know the Scope 3 fossil fuel emissions let alone the sustainability impact of their investments and loans, claiming they are doing good because they encourage their staff to cycle to work (national labour law obligation), recycle waste (local legal obligation) and flush the toilets in their BREEAM-certified offices with rain water (innovative)! However, this is next level. EFRAG’s first voluntary SME sustainability report shows how the organisation applies the EU’s circular economy principles by reducing the use of “single use cutlery through provided kitchen utensils to enhance reusability of products and ensure minimisation of waste“. Say again? Yes, replacing single use forks and knives for your office lunch with IKEA MOPSIG will get you massive kudos from the sustainability bean counters. For organisations with 59 staff, it is recommended to purchase 59 reusable forks, 59 reusable spoons, and 59 reusable knives, to help save the planet. So next time you wonder what you can do at home to make your life more EU-taxonomy aligned, relax, focus on the low-hanging fruit, ditch the single use cutlery and put those sustainable forks and knives in your dishwasher instead. And please, don’t forget the office coffee mugs for maximum ESG points.
IT’S SPRING CLEANING TIME IN BRUSSELS
Have you started your spring cleaning yet? Ursula has, and the Commission’s Berlaymont headquarter is going to see a proper cleanup of the EU’s acquis. Whether it is customs union and fiscal rules, banking and finance, food safety, agriculture or healthcare, all of these sectors are up for a good old Omnibus somewhere this year, to “streamline” the EU rules and make them fit for the 21th century. The new bible is still called Better Regulation, and while the Commission is proud that its actions are “informed by the best available evidence”, simplification is now at the core of better regulation. The rules must be stress-tested through evaluations and fitness checks, so that the “resulting simplification proposals will ultimately simplify EU laws and reduce regulatory burdens”. Central to the initiative is the “Action Plan for Regulatory Deep Cleaning”, which will tackle 12 priority areas following a consultation with stakeholders that saw a massive 288 submissions, covering all 27 member states. Amongst the plans is a renewed cooperation with the Parliament and Council to encourage them to assess the impact of amendments, because they are “possibly resulting in higher burdens or unexpected difficulties in implementing legislation“. And, a high-level expert group (The Simplification Platform) will be created to lighten the load, REFIT legislation, and ensure it is Fit for Future — in short, old wine in new casks. Finally, the evil practise of gold-plating (countries going further than what the EU requires, for instance to avoid undoing national consumer protection achievements) will be tackled with best practices, transposition guidance, and better and earlier detection. Banks will also be encouraged to merge to create European champions, and citizens will be encouraged to invest instead of leaving their money in a dormant savings account. Oh sorry, you were here for better regulation?