Welcome to Better Europe's weekly update on EU Affairs. EPP WANTS TO HALT EU SUSTAINABILITY RULES TO IMPROVE COMPETITIVENESS The centre right EPP Group, which emerged as the largest parliamentary political group in the last elections, held its party convention in Portugal this week. The meeting allowed for strategic discussions on the new EU term, and for EPP members to agree on a set of proposals for the next Commission’s work programme. A leaked draft of the EPP’s “5-point plan for a strong Europe” places competitiveness at the heart of the EPP’s agenda and proposes that two thirds of the EU budget should be dedicated to it. Building upon Ursula von der Leyen’s 2023 commitment to reduce the reporting obligations of companies, the draft work plan also suggests to “halt…

Welcome to Better Europe's weekly update on EU Affairs. EU LEADERS STRUGGLE TO FINALISE POST-ELECTION TOP JOB APPOINTMENTS Following the EU elections of 6-9 June, which resulted in an overall shift to the right, EU leaders met for an informal Council meeting on 18 June to agree on the appointment of EU top jobs for the next five years. A consensus had seemed to emerge ahead of the meeting, with EPP figures Ursula von der Leyen (Germany) and Roberta Metsola (Malta) expected to remain at the head of the Commission and Parliament, S&D’s António Costa (Portugal) likely to take the Presidency of the Council, and Renew’s Kaja Kallas envisioned to become EU’s diplomacy head. Yet no agreement was sealed on Monday, and discussions were shelved at least until next week.…

Welcome to Better Europe's weekly update on EU Affairs. MEMBER STATES AGREE ON GREEN CLAIMS RULES AHEAD OF NEGOTIATIONS WITH PARLIAMENT After the Parliament adopted its position in plenary last Mach, it is now up to the Council to take its position on the Green Claims Directive, which will require companies to submit evidence about their environmental marketing claims before so-called “sustainable” products. Member State ambassadors on 5 June approved the last version of the text ahead of a formal endorsement by environment ministers on 17 June. The revised version introduces new requirements for substantiating climate-related claims based on carbon offsetting and requires that traders prioritise emission reduction in their own operations and value chains rather than relying on the purchase of carbon credits. This approach is less ambitious than…

Welcome to Better Europe's weekly update on EU Affairs. EUROGROUP MINISTERS ADOPT ROADMAP WITH STEPS TO DECIDE ON FUTURE OF CMU Eurogroup Finance Ministers this week presented their “first step towards delivery” of the future of the Capital Markets Union package, endorsing a one page high-level roadmap with six steps to be taken in the coming year. By focusing on the timing of key steps in the process, the statement tries to cover up the cracks in between Member States, with some calling for faster integration and the introduction of unified European-level supervision for the largest financial markets players, while others are pulling the emergency break. French President Emmanuel Macron and outgoing European Commissioner for Economy Paolo Gentiloni are clearly in the first group, using public statements to warn that…

Welcome to Better Europe's weekly update on EU Affairs. SIXTH PCI LIST ENTERS INTO FORCE, ACCELERATING THE HYDROGEN RUSH With the amended TEN-E Regulation in force, time has come for its baby: a new, sixth list of Projects of Common Interests (PCI). These projects enjoy a “streamlined” environmental impact assessment, accelerated permitting, and access to EU subsidies. The new list features many hydrogen projects, confirming the recent European rush towards this gas. While renewable hydrogen will play a crucial role in the energy transition, it is not a silver bullet, and there is a strong argument to avoid excessive use in buildings and focus on use of hydrogen in hard to decarbonise sectors instead. The fossil fuel industry missed this memo and jumped on the hype, which means a lot…

Welcome to Better Europe's weekly update on EU Affairs. URSULA 2024 SAYS OPEN TO DEAL WITH CONSERVATIVE ECR GROUP AT FIRST EU DEBATE Six weeks before the elections, EPP lead candidate and current Commission President Ursula von der Leyen was already forced to show her colours on potential cooperation with hard right conservative groups such as the ECR. At a first debate amongst eight “Spitzenkandidaten” in Maastricht on 30 April, she defended her legacy and launched her Ursula 2024 campaign. Pushed about the likeliness of her tying up with the ECR, she indicated being open to a deal with the group, depending “on how the competition of the Parliament is and who is in what group”. The ECR group is composed of Giorgia Meloni’s Fratelli d’Italia, Andrzej Duda’s Law and…

Welcome to Better Europe's weekly update on EU Affairs. MEMBER STATES KEEP RETAIL INVESTORS IN THE DARK ON SUSTAINABILITY IMPACTS As Parliament prepares to formalise its positions on their legislation where it could not yet start negotiations with the Council, the Belgian Presidency is keen to use April and May for internal decision-making between Member States. One of the major initiatives discussed is the Commission Retail Investment Strategy, which saw a lukewarm proposal to ban some kickbacks paid for financial advice where actually no such advice is given. In a full day meeting next week, national officials will discuss alternative "value-for-money" experiences in Germany and Denmark, along with two Belgian drafts on disclosure of information to consumers and on how to test whether a product is suitable for a given…