Slovenian Presidency of the Council of the EU: Key issues to watch - A Cicero/amo overview

SLOVENIAN PRESIDENCY OF THE COUNCIL OF THE EU: KEY ISSUES TO WATCH

Cicero/amo 24 June 2021

Progress on the Digital Services Act (DSA) and Digital Markets Act (DMA) • The DSA and DMA seek to enhance the governance of digital services in the EU and reinforce the European Single Market in terms of competitiveness, innovation and growth.

• Since December 2020, the German and Portuguese Presidencies have worked hard to progress these files through the initial discussions amongst Member States.

• Slovenian authorities are now looking to agree on a ‘general approach’ in the Council of the EU

by November, effectively an unofficial first reading position which the European Parliament can use as an indication of the position of Member States. The Parliament’s first reading position is expected towards the end of 2021, after which the Council will adopt its position followed by negotiations between the two institutions in pursuit of a commonly agreed text.

Legislative work on ‘Fit for 55’ • The European Commission is due to publish the long-awaited energy and climate policy package ‘Fit for 55’ on 14 July, proposing 11 legislative proposals and revisions needed to meet a 55% emissions cut by 2030*.

• The Slovenian Presidency has announced it seeks to make good progress in the negotiations on the large number of energy legislative proposals coming down the pipeline.

• Due to varying perspectives between MEPs and several EU Member States on the direction of the energy transition, reaching an agreement within six months will be challenging. As such, many of these files will likely spillover into the French Presidency in the first half of next year.

*In comparison with 1990 levels 2

Rollout of Next Generation EU and the Recovery and Resilience Facility • Next Generation EU is the EU’s €750 billion temporary recovery instrument, with the European Commission raising the bulk of the cash from capital markets.

• At its heart is the Recovery and Resilience Facility, comprised of €672.5 billion loans and grants to help Member States reform and recover. To access these funds, Member States have had to submit Recovery and Resilience Plans to the Commission for approval. These plans detail how the money will be spent, with large amounts being dedicated to climate and digital objectives.

• Member States are eager to access these funds, with the Slovenian Presidency seeking a smooth and orderly rollout over the coming months.

EU participation at COP26 in Glasgow, UK • With the EU seeking bolder targets of a 55% greenhouse gas emissions cut by 2030* and climate neutrality by 2050, the Presidency and the European Commission as representatives of the EU will need to advocate for similar ambitions at COP26.

• With the US rejoining the dialogue on climate change, the EU is also looking to pursue firmer commitments amongst large polluters to meet the targets set out in the Paris Agreement.

• In the fringes of COP26, many countries are expected to raise concerns with the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM) proposal which looks to attribute a levy on the amount of carbon emitted in the manufacturing of imported materials. The challenge for the Slovenian Presidency will be to find a balance between a mechanism that sufficiently protects the EU’s competitiveness, while tackling ‘carbon leakage’. *In comparison with 1990 levels 3

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Helena Walsh Managing Director, EU Public Affairs +32 (0)2 612 8152 helena.walsh@cicero-group.com

Tim Davidson Senior Account Executive (Energy & Environment) +32 (0)2 612 8164 tim.davidson@cicero-group.com

Alexandros Nikolaidis Senior Account Manager (Financial Services) +44 (0)20 7665 9539 alexandros.nikolaidis@cicero-group.com

Daan Cortenbach Senior Account Executive (Energy & Environment) +32 (0)2 612 8165 daan.cortenbach@cicero-group.com

Matej Zezlin Account Manager (Digital) +32 (0)2 612 8166 matej.zezlin@cicero-group.com

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