Welcome to Better Europe’s weekly update on EU Affairs.
MINISTERS WANT LESS RED TAPE ON DIGITAL RULES DESPITE PRIVACY RISKS
A new coalition of 14 digital ministers, the D9+ group, is pushing for a tech-savvy, competitive Europe. However, their latest declaration, signed in Amsterdam on 27 March, not only champions innovation but also the reduction of regulatory burden, which they argue are stifling businesses, especially SMEs. They’re calling for a strategic EU approach to digital sovereignty, with a focus on AI, cloud computing and semiconductors, while advocating for a streamlined regulatory framework. This effort is part of a broader European Commission initiative, led by Commissioner Michael McGrath, to simplify and deregulate the EU’s regulatory landscape. The GDPR revision, which is expected soon as part of a new Omnibus, aims to reduce complexity for businesses, especially small ones. However, this push for simplification raises concerns about weakening privacy protections. As Big Tech intensifies its lobbying efforts, there’s a risk that key safeguards could be watered down, leaving citizens’ rights at risk in the name of promoting competitiveness. The EU’s push for digital growth could inadvertently sideline its commitment to protecting fundamental rights.
EU LIFE FUNDING SURVIVES FIRST ATTACK BUT STILL AT RISK
The right’s offensive onslaught to defund green NGOs continues. The baseless allegations that the Commission is meddling in the legislative process by shadow lobbying the EP through the LIFE program’s operating fund were put to a vote this week in the Parliament. Three right-wing political groups on 31 March suggested the unironic death of the LIFE program by means of a legally weightless, although symbolically deafening, political resolution. The motion’s purpose, according to the text, was to ‘safeguard the separation of powers’. With 40 votes in favour and 41 against , the objections to the LIFE funding were narrowly struck down. It would likely have been a larger margin if the Commission had published the statement that they promised straight away instead of the next day. The saga continued another day later, when the ECR group announced that they had enough votes to open a formal inquiry committee into ‘green lobbying ’ to further investigate organizations funded by LIFE. The probe would have to be approved by the Parliament’s conference of presidents, which will meet at the end of the month. Another attack is expected next week, when the Parliamentary’s budget control committee, votes on its annual budget report.
FINANCE AND DEFENCE – WE ARE ONE
For years, the defence industry has been one of the best allies of civil society in promoting the need for a social taxonomy, because in their view security is a social good. However, things are getting grimmer as many sector representatives are now suggesting other transitions, including the green and digital transition, need to be put on hold. So now it’s a trade-off, or as one industry rep put it: “What’s the point of social housing if you have Putin knocking at your door?” And it’s no longer about promoting defence as a positive sustainable investment, but about getting banks to drop their exclusion policies that currently ban defence investments. Speaking at the annual networking event of Belgian banking association Febelfin, the Vice-Chair of the Munich Security Conference Benedikt Franke went as far as saying that the financial and defence sector for too long have ignored each other, but are now one sector for the years to come, and that he was looking forward to spend the coming months talking at banking conferences. At the same event, the new Belgian Finance Minister Jan Jambon welcomed the 1.5% budget reprieve given by the Commission to finance defence spending, but warned that he is not inclined to further indebt the country, and that the money will have to come from somewhere else. The remarks are in line with MEP comments in the ECON Committee, who appreciate the cash but warn that structural debt financing is not a sustainable solution.