Brussels Playbook: Saving Europe’s industry — Commission deep state — Brexit hypocrisy – POLITICO

DRIVING THE DAY: TRANSATLANTIC BRAWL       

EU PUSHES EMERGENCY BUTTON TO SAVE INDUSTRY: Bells are ringing in Europe’s energy facilities — alas, they’re not sleigh bells, however alarm bells. Leaders in Brussels, Berlin and Paris now consider Europe’s financial system stands earlier than a precipice, confronted with an exodus of commercial funding throughout the Atlantic to the U.S. — which they concern will begin as quickly as January.

To stop European industry from being worn out by American rivals, the EU is now readying an enormous subsidy push, two senior EU officers informed POLITICO.

Transatlantic shakedown: Indeed, Europe is going through a double hammer blow from throughout the icy Atlantic, the place its supposed accomplice, the U.S., has adopted insurance policies that — whether or not intentional or not — quantity to a full-on shakedown of EU industry.

‘Buy American’: It wasn’t sufficient that Europe’s vitality costs look set to stay completely far greater than these within the U.S. because of Russia’s warfare on Ukraine (extra on that right here). Now, U.S. President Joe Biden can be rolling out a $369-billion industrial subsidy scheme to assist inexperienced industries below his Inflation Reduction Act, key provisions of which enter into drive subsequent 12 months. Crucially, these subsidies shall be linked to “Buy American” provisions that imply solely automobiles, batteries and photo voltaic cells manufactured within the U.S. can profit.

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Existential risk: EU officers concern that companies will now face nearly irresistible stress to shift investments to the U.S. slightly than Europe. At a assembly with EU industry leaders Monday, European Commissioner Thierry Breton warned that the U.S. subsidy bundle was an “existential challenge” for the bloc’s financial system, based on individuals within the room.

In different phrases: Rather than bringing presents, the approaching threat is that Santa Claus will this 12 months be snatching up Europe’s most-prized financial belongings — from its aerospace to its renewables industries, painfully constructed up over a long time however now all of the sudden vulnerable to changing into industrial wastelands.

‘It’s like drowning’: Unlike with COVID, the concern shouldn’t be a lot of a sudden financial crash, however a long-term, far more pernicious and everlasting loss in competitiveness. “It’s a bit like drowning. It’s taking place quietly,” EnterpriseEurope President Fredrik Persson stated.

New knowledge at this time hammers that time house: Persson’s bleak evaluation is being echoed by industry leaders throughout the board: Chief executives’ confidence in Europe has reached an all-time low, based on a survey by the European Round Table for Industry, a C-suite enterprise foyer, printed at this time.

Emergency measures: According to the 2 senior officers, the EU is now engaged on an emergency scheme to funnel cash into key high-tech industries. This would occur through the “European Sovereignty Fund,” which Commission President Ursula von der Leyen talked about in her State of the Union speech.

On the agenda: One official stated European leaders will talk about Washington’s subsidies and the EU response on the margins of the Western Balkan summit on December 6 and on the European Council mid-December.

‘Last of the Mohicans’: Liberal-minded diplomats are warning of a subsidy race, pointing to proof that such industrial incentives are sometimes wasteful and favor established corporations which can be higher at lobbying than innovating, redistribute cash from taxpayers to shareholders and threat additional driving inflation. But a number of diplomats and senior officers additionally burdened that it may be too late to keep away from a subsidy race, given the U.S. and China have already began working. Or, as French Economy Minister Bruno Le Maire put it Tuesday: “Europe must not be the last of the Mohicans.”

Further studying … From Playbook and Barbara Moens right here.

RUSSIAN WAR FALLOUT       

COMMISSION PROPOSES HOMEOPATHIC GAS PRICE CAP: After months of ready, the European Commission lastly unveiled its formal proposal for a gasoline value cap to assist the EU keep away from exorbitant vitality costs subsequent 12 months — but it surely’s clear Brussels doesn’t wish to use it.

EU’s deep state: The Commission’s technocrats have been all the time against the gasoline value cap, which they noticed as a high-risk market intervention. It was solely after months of immense stress from 16 EU international locations, who type a certified majority, and a number of other EU leaders’ statements, that the Commission reluctantly proposed a cap. But, as a diplomat informed my colleague Charlie Cooper, “the cap isn’t really designed to be triggered. And I mean triggered at all.”

Never say by no means (hahaha): It’s clear that the Commission’s consultants aren’t followers of the cap, and so they’ve crafted it to make it virtually ineffective. Under the Commission’s proposal, the “market correction mechanism” would solely kick in if the month-ahead gasoline value on the EU’s foremost benchmark, the TTF, exceeded €275 per megawatt hour for 2 weeks straight, and if on the identical time the TTF value in Europe was €58 greater than the worldwide LNG value for 10 consecutive days. That didn’t occur even on the peak of the August spike, when costs briefly hit €350 per MWh however solely stayed above the magic determine of €275 for per week.

Commission comedy second: The Brussels Times’ comedy account Le Chou had an apt description of the proposal: The cap shall be triggered “if it’s the fourth Sunday of the month while Jupiter is in ascension and it’s a full moon.”

TOP SANCTIONS READ: European authorities have repeatedly imposed asset freezes on Russian oligarchs they accuse of supporting the nation’s warfare on Ukraine. The oligarchs usually sue — and win — in courtroom … however that doesn’t imply they may get their stuff again anytime quickly, stories POLITICO’s Leonie Kijewski.

TODAY’S TECH NEWS       

COUNCIL CRUNCH TIME FOR CHIPS ACT, PLATFORM WORK: The Czech Council presidency will attempt to hash out a political deal amongst EU member international locations at this time on two main digital information: the bloc’s semiconductor plans and a proposal to reclassify thousands and thousands of gig employees, our colleague Pieter Haeck writes in to report.

Details: EU deputy ambassadors will convene at 10:30 a.m. to resolve whether or not they can comply with a so-called common method pitched by the Czech Council presidency. If they do, it’s as much as ministers to present the ultimate inexperienced gentle — industry ministers can try this for the Chips Act subsequent Thursday, whereas employment ministers can do it for the Platform Work Directive on Thursday, December 8.

Unsettled enterprise: A deal shouldn’t be set in stone, and at this time’s Morning Tech publication has the lowdown of the place issues can go south in each information. In quick …

Not low-cost as Chips: The EU funds underpinning the Chips Act is probably the most controversial level, with some international locations up in arms over the Commission’s proposal to supply a number of the funds by redirecting funds from the present Horizon Europe and Digital Europe packages.

Platform Work: The Czechs caught near the Commission’s method in its dealing with of the Platform Work Directive, laying down standards to find out the job standing of gig employees like Uber drivers and Deliveroo couriers. But whereas the Commission stated that two out of 5 standards wanted to be fulfilled for a gig employee to change into worker, the Czechs go for 3 out of seven standards, with an additional exemption {that a} criterion shouldn’t be fulfilled when a platform is simply complying with nationwide regulation.

IN OTHER NEWS       

PUTIN IN YEREVAN TODAY: Russian President Vladimir Putin will go to Yerevan, Armenia at this time for a session of the Collective Security Council, the principle physique of the Collective Security Treaty Organization made up of Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan. Also anticipated to attend are Armenian Prime Minister Nikol Pashinyan, Belarusian President Alexander Lukashenko, Kyrgyz President Sadyr Zhaparov and Tajik President Emomali Rahmon. Russia’s state-run TASS company stories that it’s not recognized whether or not Kazakh President Kassym-Jomart Tokayev will attend.

BERLIN ANNOUNCES MALI RETREAT: Germany on Tuesday stated it should finish its army presence in Mali as a part of the U.N.’s peacekeeping mission within the nation, with a gradual withdrawal that’s scheduled to start out subsequent summer season and terminate in May 2024 — marking the tip to the Bundeswehr’s largest present overseas deployment. The determination comes as Mali’s ruling junta has turned to Russian Wagner Group mercenaries and is more and more hostile to the worldwide peacekeeping missions, which have been initially established at Mali’s request to combat rising Islamist exercise within the nation.

BREXIT HYPOCRISY ALERT: Owen Paterson, a former Conservative MP who repeatedly criticized the European Court of Human Rights, is taking the U.Okay. authorities to … the European Court of Human Rights. Details right here.

BOLSONARO TRUMPS IT: Defeated Brazilian President Jair Bolsonaro is contesting the outcomes of the October election and calling on the electoral authority to annul votes solid on most digital voting machines, citing a software program bug that impartial consultants have stated didn’t have an effect on the outcomes. If he succeeds, Bolsonaro would win 51 % of the remaining legitimate votes, based on his lawyer. More from AP right here.

MONKEYPOX GETS A NEW NAME: The World Health Organization is planning to rename monkeypox, designating it as “MPOX” in an effort to destigmatize the virus, three individuals with data of the matter informed POLITICO.

OPINION — FIFA HAS SOLD ITS OWN RULES AND VALUES FOR MONEY.

**On December 7, POLITICO will unveil its POLITICO 28 record throughout its annual gala dinner. Our award-winning occasion and publication will acknowledge the 28 strongest gamers driving change and fixing issues in European politics, coverage and enterprise for the 12 months 2023. The occasion will even characteristic an unique interview with European Parliament President, Roberta Metsola.Register right here.** 

AGENDA       

European Parliament plenary continues in Strasbourg. Highlights: Debate on the necessity for a European answer on asylum and migration 9 a.m. … Parliament President Roberta Metsola holds press convention on a brand new initiative to help Ukraine at 1 p.m.; adopted by debate at 3 p.m. Full agenda. Watch.

— Conference on “The way forward in opposing abortion in the U.S. and Europe” on the European Parliament in Strasbourg at 6 p.m. Watch.

European Economic Area Council. Roundtable at 2:35 p.m.

— Commissioner Mariya Gabriel in Munich for official go to.

— Commissioner Olivér Várhelyi participates within the Israeli Ambassadors’ Conference.

— Commissioner Jutta Urpilainen visits Port Vila, Vanuatu; attends twelfth Conference of the Pacific Community.

— Russian President Vladimir Putin visits Yerevan, Armenia for assembly of Collective Security Treaty Organization.

BRUSSELS CORNER       

COMMISSION COMEDY MOMENT, PART 2: The Commission on Tuesday despatched out a press alert to all journalists on a very breathtaking growth: “The European Commission decided to register a European Citizens’ Initiative (ECI) entitled ‘European Day of ‘Whatever it Takes’” — which, the Commission explains, would rejoice the assertion from former European Central Bank President Mario Draghi, who famously calmed markets throughout the sovereign debt disaster by vowing to do “whatever it takes” to save lots of the frequent foreign money. The day ought to be a “symbolic act of pan Europeanism,” the Commission says in its press be aware, quoting the initiative.

MORE EU LAUGHS: Brussels’ favourite Eurocentric comedy present, the Schuman Show, is again on Thursday, December 1 and Friday, December 2. Tickets right here.

BIRTHDAYS: Les Echos’ Karl De Meyer; Former MEP Jordi Sebastià; POLITICO’s Virginie Dandoy; BBC’s Suzanne Kianpour; Walt Disney Company’s Geoff Morrell.

THANKS to Barbara Moens, Pieter Haeck and our producer Grace Stranger.

**A message from EPPA: Last week, a brand new scientific research make clear sustainable takeaway packaging. The research, peer-reviewed by a panel of worldwide specialists, confirms that throughout a variety of affect classes paper-based packaging scores higher, and it’s by far the best packaging answer total. The European Commission should assume once more about its method to reusable programs within the Packaging and Packaging Waste Regulation. Learn extra right here.**

based mostly on web site supplies www.politico.eu

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