EU Friday – 13 September

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EU Friday

Welcome to Better Europe’s weekly update on EU Affairs.

DRAGHI’S MEGA-INVESTMENT PLAN TALK OF THE TOWN IN BRUSSELS

Mario Draghi’s €800 billion investment plan, unveiled this Monday, has set off a storm of reactions across Europe. The former ECB chief is advocating for a hefty annual boost—equivalent to 4.4-4.7% of EU GDP—to tackle decarbonisation, digitalisation and defence. His aim: to help Europe catch up with other global heavyweights like China and the US. With no surprises, the centre-right side of the political spectrum has been quite satisfied with the report, praising it for its concrete pathways for solutions. Green advocates, on the other hand, raise serious concerns amid the already environmentally unfriendly political atmosphere. CAN Europe criticised the report for neglecting crucial elements and being too heavily focused on industrial competitiveness. Member states are divided. The Netherlands and Germany have voiced strong opposition to increased debt, with Dutch Finance Minister Eelco Heinen declaring that “more money is not always the answer.” Conversely, Spain’s Finance Minister Carlos Cuerpo  backed, Draghi’s vision, advocating for a “permanent common EU debt program” to support the proposed investments. The future of Draghi’s idea hinge on navigating these divergent views and finding a consensus on Europe’s financial and environmental priorities.

INCOMING COMMISSION FACES PRESSURE FROM SOCIALISTS AND LIBERALS

The soon-to-be-announced new European Commission is already under close scrutiny, as key political groups represented in the European Parliament have started outlining their expectations for its composition and agenda. The Socialists & Democrats (S&D), which account for the second largest group in Parliament, have warned that their support is under consideration as Commission President-elect von der Leyen is not respecting the Spitzenkandidat process (the S&D President candidate Nicolas Schmit should be given a position in the College of Commissioners), she is giving up on gender balance, and potentially sidelining social rights. In the “Ostend Declaration”, Renew Europe sets their clear expectations for the incoming Commission. Renew’s focus is to ensure that von der Leyen selects Commissioners who prioritize European integration, independence from national interests, and reform. They also call for strong commitments to defend liberal democracy, accelerate military support for Ukraine, and foster job creation. Both groups emphasize that the new Commission must reflect their core values and principles to secure their support in Parliament, and that they will be watching this closely during the hearings of the Commissioners-designate, now expected to start mid-November.

GERMANY REINSTATES BORDER CONTROLS, BUT WHAT ABOUT THE COMMUTERS?

If you plan a trip to Germany by car after this weekend, perhaps factor in an extra half hour just in case you are pulled for a spot check at the border. German Interior Minister Nancy Feaser annoucned this week that Germany will impose tighter land border controls in an attempt to tackle irregular migration. While reinstating border controls is not something unusual in case of security risks, as we have seen during the Covid-19 pandemic, it can definitely impede the free movement of people and goods. Particularly, it may cause a great deal of inconvenience to people living in border regions. According to data from 2020, around one in 10 inhabitants of these regions commute to the neighbouring country for work. Amid these concerns, and strong political reactions by some neighbouring countries, German authorities clarified that the controls will take form of spot checks and mobile controls, where police flag down specific vehicles if there is a risk of smuggling people and other cross-border crimes. Such checks already exist on German border with some member states and some train stations are notorious for border delays.