Farmers Protest Against EU Policies
But also — People, Economic Security, DSA, DMA, TF1
Hi! It’s Wednesday 31th January, and here is your EU news summary for the week. Feel free to share this newsletter with friends and colleagues, and follow us on Twitter and LinkedIn.
The Briefing
The mobilisation of farmers is escalating across Europe. Right before the European elections, Brussels is facing growing criticism on various agriculture-related issues.
EUROPEAN MOVEMENT • The ongoing protests in France are just the latest episode of a wider European movement. In the last 18 months, over half of the EU member states have witnessed farmer mobilisations.
Since 2019, the Netherlands has been entangled in a complex crisis regarding the reduction of nitrogen emissions in agriculture. In recent months, Ireland has faced opposition from farmers on the same issue.
In Germany, farmers have been mobilising since late December against a reform of agricultural diesel taxation.
In Eastern Europe, Poland, Hungary, Romania, Slovakia, and Bulgaria are experiencing massive farmer protests against imports of Ukrainian cereals that have lowered prices.
These protests could soon reach Southern Europe, where Italy and Spain are facing growing opposition from farmers regarding water management amid drought.
CAP • Beyond specific demands in each Member State, European policies in agriculture, environment, and trade are under scrutiny. The reform of the Common Agricultural Policy (CAP) for the 2023-2027 period has faced extensive criticism. This reform aims — among others — to enhance environmental protection and accelerate the fight against climate change.
Within the new CAP, direct aid to farmers is subject to stricter environmental conditions:
Crop rotation is now mandatory for farms of at least 10 hectares, except for those with large meadows or organic farms.
Farmers must now allocate at least 4% of their land to ecological focus areas (EFAs) such as hedges, ponds, or fallow land.
"Eco-schemes" have also been introduced, aiming to provide more generous support to farmers adopting environmentally-friendly practices (such as carbon storage).
Many farmers lament the increased administrative burden accompanying these new measures. "In addition to this, there is increased complexity to access lower aids," notes the think tank Farm Europe.
GREEN DEAL • The "Farm to Fork" strategy is also in the spotlight. This strategy is the agricultural arm of the Green Deal.
Belgian MEP Philippe Lamberts, from the Greens, summarises the situation: "The agricultural sector has not yet felt the full impact of the Green Deal. However, if, in addition to all the constraints already present today, we blindly add additional constraints related to the green transition without changing the foundations of the system, the transition will not happen."
ELECTIONS • As the elections approach, the different political groups in the European Parliament are positioning themselves on the legacy of the Green Deal and Farm to Fork — highly contested by farmers.
Last July, the proposal for a nature restoration law — imposing land restoration targets — faced massive opposition from the European People's Party (EPP, centre-right). Seeking to position itself as the "farmers party”, the political group wants to renegotiate some environmental regulations and directives adopted in the last five years. The EPP also calls for a regulatory pause on the environment.
Renew the liberal group, does not want to reopen old files. "We have made a lot of progress during this legislature [...] we must not undo what has already been done," said French MEP Valérie Hayer, who was chosen to replace Stéphane Séjourné as the president of Renew. Regarding the idea of a regulatory pause on the environment, the group is not yet decided.
On the left, the Socialists and Democrats (S&D) group echoes farmers' criticisms of free trade agreements, which they say allow goods escaping EU rules into the single market, creating unfair competition with European farmers. The solution? The implementation of mirror measures and the development of "European green protectionism," says Raphaël Glucksmann.
European far-right parties hope to find new support within the farmers’ movement for the June elections, during which the Identity and Democracy (ID) group could become the third political force in the European Parliament, according to polls.
STRATEGIC DIALOGUE • Faced with this dire situation, European Commission President Ursula von der Leyen announced in September the initiation of a strategic dialogue on the future of agriculture in the EU.
This dialogue was launched on January 25, with the participation of representatives from trade unions and agricultural professional organisations and cooperatives (such as Copa-Cogeca). The goal of this initiative is to move towards "more dialogue and less polarisation" in the implementation of agricultural policies in the EU.
However, many European agriculture ministers criticise the timeline saying that this dialogue should have started "earlier."
In Case You Missed It
PEOPLE • Just three weeks after announcing his candidacy for the European elections, Charles Michel made a U-turn by dropping out of the race. The now-former future candidate and future ex-president of the Council will finish his term in December 2024.
As a reminder, European leaders were preparing themselves for the need to appoint an early successor to Michel between June and July 2024 in order to prevent Viktor Orbán from taking interim leadership in the European Council — Hungary takes over the rotating presidency of the EU Council in the second half of 2024.
In the European Parliament, Valérie Hayer has replaced Stéphane Séjourné as the president of Renew. She is the second woman to lead the liberal-democratic family after Simone Veil. Valérie Hayer has been elected since 2019 and sits on the Parliament's budget committee, where she negotiated the EU's long-term budget.
ECONOMIC SECURITY • On January 24, Competition commissioner Margrethe Vestager unveiled a series of proposals to strengthen the EU’s economic security, especially by countering the interference of strategic rivals.
The Commission proposes defining a limited number of sectors as sensitive (artificial intelligence and quantum computing, among others) and harmonising national regimes to better detect foreign interference.
The Commission also proposes to control both incoming and outgoing foreign direct investments (FDI) in these technologies, especially those with potential dual-use (civil and military). The creation of a European expertise centre on research security is also considered. This centre would raise awareness among European universities and research centres about the growing risks in this area.
The Commission's initiative has already faced criticism from economic actors who fear that new administrative obligations will affect European competitiveness, which is already in decline. The implementation of these new measures also largely relies on the goodwill of states, some of which are highly dependent on foreign investments, notably from China.
"Too vague," "not aggressive enough," "too reliant on 'soft coordination'": these are some criticisms expressed by experts on the proposed measures.
NON NON NON • Paris has been reprimanded by Brussels for its projet de loi (draft bill) to regulate the digital space (SREN, Projet de loi visant à sécuriser et réguler l’espace numérique). On January 17, the European Commission sent a "reasoned opinion" to France, obtained by Contexte.
When the European Commission delivers a “reasoned opinion” on a legal text, voting on said text is frozen for a period of four months. As a result, the SREN law cannot be adopted before March 11, 2024.
The Commission says the SREN bill encroaches on the Digital Services Act (DSA) and the e-commerce directive. As a regulation, the DSA is "directly applicable in all Member States, without the need for implementing measures," the Commission reminds.
The Commission's letter follows an initial reasoned opinion on the matter from October 2023.
DMA • On January 25, Apple announced changes to iOS, Safari, and its App Store within the European Union to comply with the Digital Markets Act (DMA). These changes will be effective in March with iOS 17.4.
Apple device users in Europe will be able to download applications from the Google Play Store or Amazon App Store, i.e., Apple's competing app stores. They will also be able to choose a default browser other than WebKit (Safari).
Alternative payment services to Apple Pay will also be available. For example, Spotify will be able to offer subscription payments on iPhone via PayPal rather than Apple Pay. These changes will be accompanied by a reduction in Apple's App Store commissions from 30% to 17%.
In a statement, Apple noted that these changes imply a "less intuitive user experience" of its products while highlighting the risks these changes pose in terms of security.
Companies designated under the DMA have until March 6, 2024, to submit their compliance plans to the European Commission. It will be up to the Commission to determine whether these changes are sufficient or not under the DMA.
THE VOICE • The funding of French public broadcasting will undergo a thorough examination by the DG Competition services. TF1 filed a complaint with the European Commission in November 2023, which was notified to France a week ago.
In 2022, France replaced the public broadcasting contribution (CAP) with a fraction of VAT. This change should have been notified to the European Commission as a new state aid, explained TF1's lawyers Frédéric Mion and Benoît le Bret to Le Figaro.
TF1 considers that the subsidies paid to France Télévisions — over €2.5 billion per year — are illegal under European law, as they are not subject to specific obligations (according to TF1). TF1 feels it is a victim of distortions of competition in favour of public broadcasting. Additionally, public broadcasting benefits from a reduced VAT rate of 2.10%, compared to 20% for private broadcasters.
France has one month to present its observations. The Commission will then decide whether to open an in-depth procedure or not. This is not the first time French private and public broadcasters clash. In 2013, TF1 unsuccessfully attacked the long-term financing reform of France Télévisions before the EU Court.
What We’ve Been Reading
Chad P. Bown of the Peterson Institute takes a look at the EU’s efforts to guarantee its economic security.
You can also read the Institut Montaigne’s new report on the increasing relevance of extraterritoriality, written by Georgina Wright, Louise Chetcuti and Cecilia Vidotto Labastie.
In a report published by Bruegel, Maria Demertzis, David Pinkus and Nina Ruer propose a long-term approach to the financing of the EU’s strategic goals.
This edition was prepared by Augustin Bourleaud, Guillaume Renée, Marwan Ben Moussa, Maxence de La Rochère and Hana Rajabally. See you next week!