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Juncker defines 10 priorities for EU, seeks inter-institutional support

Published: 14/11/2014 – 08:08 | Updated: 14/11/2014 – 09:56

 

 

Jean-Claude Juncker [European Parliament/Flickr]

EXCLUSIVE: In a letter to the President of the European Parliament and to the Italian Presidency obtained by EurActiv, Commission President Jean-Claude Juncker proposes a better coordinated working program of EU institutions and fleshes out the 10 priorities he has identified for 2015.

Juncker and his Vice-President Frans Timmermans sent the 4-page letter on Wednesday (12 November) to Martin Schulz, President of the European Parliament, and to Matteo Renzi, President of the Council of the EU (the rotating EU presidency). Herman Van Rompuy, the outgoing European Council President and Donald Tusk, who will take over on 1 December, are not included among the recipients.

The Commission President argues that closer cooperation among the EU institutions can send a powerful message at a time when the crisis still bites, and unemployment remains “unacceptably high”, and when events in EU’s neighbourhood “call for a strong response”.

According to the EU treaty, it is the Commission that initiates the Union’s annual and multi-annual programming. However, Juncker says he wants to share with the Parliament and the Council of the EU his initial thinking for the 2015 priorities, before those are adopted before the end of this year.

In his letter, Juncker adds some substance in the list of 10 priorities, as follows:

1. A new boost for jobs, growth and investment

• Jobs, growth and investment package (before end of 2014) and follow up
• A review of the Europe 2020 strategy
• A strengthened Better Regulation agenda

2. A Connected digital single market

• A Digital single market package, including more ambitious reform of the telecoms market
• A proposal on copyright reform

3. A resilient Energy Union with a forward-looking climate change policy

• Follow-up to the 2030 energy package agreed last October
• Preparation of the EU role in the Paris Climate change conference in 2015
• Actions to strengthen energy security

4. A deeper and fairer internal market with a strengthened industrial base

• Implementing new banking supervisory and resolution rules, completing the financial services regulatory framework
• Proposals on crisis management and resolution of financial institutions other than banks
• Work on a future Capital Markets Union
• A targeted review of the Posting of workers directive, promotion of labour mobility
• Work on a definitive VAT regime
• Measures to combat fraud and tax evasion

5. A deeper and fairer Economic and Monetary Union

• Proposals to deepen EMU and strengthen economic governance, following review of “two-pack” and “six pack”

6. A reasonable and balanced Free trade agreement with the USA

7. An area of justice and fundamental rights based on mutual trust

• Pursuing EU accession to the European Convention on Human Right
• Concluding a comprehensive EU-US data protection agreement and review of safe-harbour agreement

8. Towards a new policy on migration

• Implementing the common asylum policy
• A new policy on legal migration, starting with the review of the Blue Card directive
• A Communication on internal security strategy
• Operational measures to fight terrorism and counter radicalisation

9. A stronger global actor

• European neighbourhood policy: stocktaking and way forward
• Millennium development goals/post-2015 framework

10. A Union of democratic change

• Review of legislation for the authorisation of GMOs
• Inter-institutional agreement on a mandatory transparency register
• Inter-institutional agreement on better law-making.

Juncker further tells Schulz and to Renzi that his services are ready in the coming weeks to exchange views on these issues with the institutions they represent.

The second part of Juncker’s letter is dedicated to his proposal for a new inter-institutional agreement “on better law-making”, to be concluded before the end of this year.  The idea is that the three institutions should agree on a multi-annual program setting strategic objectives and deliverables in the beginning of the 5-year legislative term, and that the program could be reviewed mid-term.

As Juncker and Timmermans explained on Wednesday, the Commission would like to concentrate its efforts in the areas where there is a strong chance of adopting new legislation, and not waste time where lack of consensus is preventing from such advance.

It’s only the Commission who decides its working program, but the EU executive can only benefit from a dialogue with the other institutions, Timmermans said.

“The dialogue with the Parliament has taken place every year. But a dialogue with the Council has never taken place before. I am happy to have the possibility to clarify the Commission’s priorities with the member states, to see what are their priorities. And after that, we will draw our own conclusions”, he added.

 

EU set to leave decisions on new Russia sanctions to leaders

Published: 14/11/2014 – 07:49 | Updated: 14/11/2014 – 16:27

Federica Mogherini [CTBTO/Flickr]

With European Union governments divided, a decision on whether to tighten economic sanctions on Russia over the Ukraine conflict is likely to be left to EU leaders, who next meet in mid-December, diplomats said on Thursday (13 November).

EU foreign ministers will discuss Ukraine at a meeting in Brussels on Monday, the first chaired by the EU's new foreign policy chief Federica Mogherini.

But no decisions on ratcheting up economic sanctions on Russia are expected despite the deteriorating security situation in eastern Ukraine.

The United States warned Russia on Thursday that the West might punish it further for its "military escalation" of the crisis, as Moscow and Kyiv accused each other of truce violations in a conflict that has killed more than 4,000 people.

But EU ministers, at most, may order officials to draw up names of eastern Ukraine separatists, and possibly some Russians, who would be added to an existing list of officials under EU travel bans and asset freezes, EU diplomats said.

About six of the EU's 28 governments are pushing the bloc to consider taking new economic measures, on top of the financial, energy and defence sanctions already imposed. But some other EU governments oppose such a step, the diplomats said.

A decision on whether or not to step up economic sanctions is therefore likely to be left for EU leaders who next meet in Brussels on 18 and 19 December, diplomats said, although one source did not rule out calls for a special summit if the situation in Ukraine deteriorated

That was backed up by a discussion paper, seen by Reuters, circulated to EU member states by the EU's diplomatic service before Monday's meeting.

The paper said foreign ministers would be asked for their views about the different options on further economic sanctions and about the role they could play to prepare for "an eventual discussion" of the issue by EU leaders.

EU governments would also discuss whether more pro-Russian separatists should be added to the sanctions list "keeping in mind that the main separatist leaders are already listed … and the fact that the targeted separatists could be at some point agents in the implementation of the peace plan".

In a speech in Latvia on Thursday, Mogherini set out a three-pronged EU strategy, including economic pressure, keeping political channels open, and support for Ukraine.

 

Scientists bury hopes of EU shale gas revolution

Published: 14/11/2014 – 07:36 | Updated: 14/11/2014 – 16:27

Fracking demo. Strasbourg, 2012. [Rebecca Harms/Flickr]

Although there are no scientific grounds to ban fracking, shale gas will do little to solve Europe’s energy supply security problems, according to a new report by the European Academies Science Advisory Council (EASAC).

Best practices have “greatly reduced the environmental footprint of shale gas fracturing,” the EASAC said, claiming that risks can be appropriately managed.

These include the replacement of potentially harmful chemicals and the full disclosure of all the additives used in the hydraulic fracturing – or fracking – process, notes the report published on Thursday (13 November).

Moreover, regulatory systems are already in place in most countries to minimise the impact on health, safety and the environment, the report said.

“In Germany, for example, no hydraulic fracturing is allowed without prior proof of the technical integrity of the well,” the EASAC notes, saying existing rules are sufficient to take care of safety issues.

EASAC is formed by the national science academies of the 28 EU member states, which gives the report considerable authority.

Europe’s potential "uncertain"

However, the potential for shale gas extraction in the EU is “uncertain” because of limited geological data on the accessibility of gas, the report adds, dampening hopes that shale can one day be exploited on a significant scale on the continent.

The largest reserves are located in Poland and France, with 4.19 and 3.88 trillion cubic metres respectively, according to the US Energy Information Administration (EIA). This compares with the USA’s 16tcm.

But the European geology is “more complicated” than in the US, with rock formations “older” and “more fractured” which has “implications for technical and economic viability of gas extraction,” the report adds.

This means “only a fraction” of the reserves are considered economically recoverable in Poland, while the supposed presence of gas in the Paris basin was shown “not to exist” in the latest geological studies.

Moreover, the EASAC report is sceptical about claims that shale gas can help mitigate global warming, saying this depends on the quality of the extraction process and "well integrity".

Shale gas does offer an attractive alternative to Russian gas imports in the current tense geopolitical context, the EASAC notes however, saying it could make “a valuable contribution to energy security” by allowing some degree of “import substitution”.

As new horizontal drilling techniques become available, the land impact can also be limited, making it possible to locate shale gas well pads closer to densely populated areas.

"Technically, horizontal wells with a reach of up to 12 km are possible (although such wells would at present be uneconomic), but even with clusters of only 3km radius, it becomes viable to produce unconventional gas in heavily populated areas. This is a key contribution to reducing impacts in Europe," the EASAC report says.

This reduction in land use burden also reduces the challenges of land reclamation after use and associated post-closure financial liability, it notes.

Public acceptance and transparency is key

But any large-scale drilling operation will require broad public acceptance and trust, the report says, which makes community involvement and openness “critical”, especially when it comes to the monitoring of potentially adverse effects on the environment.

This includes transparency about the "additives used" in the fracking process and "the results of monitoring to detect any water contamination or leakages of gas before, during and after shale gas operations" which should be transmitted to regulators and made accessible to the "affected communities,” the EASAC says.

Positions: 

Shale Gas Europe, an industry group, praised the EASAC report for providing an "independent, balanced and evidence based analysis of the potential of shale gas development in Europe".

In a statement, it said the EASAC report highlighted three main points. "Firstly, with effective regulation, recent technological advancements and well management ensures that natural gas from shale can be extracted without impacting the environment, water resources and local communities. Secondly, shale gas development brings with it environmental benefits such as a reduction in GHG emissions. Lastly the report states that there is still some uncertainty about the scale of shale gas resources in Europe."

Marcus Pepperell, spokesperson for Shale Gas Europe, added: "No one single energy source will ever fulfill Europe’s energy needs. We need diversity from both domestic and foreign markets to safeguard an affordable energy supply. With over 13 trillion cubic metres of estimated resources in Europe, shale gas could make an important contribution but we need much more exploration before we will we be able to define how much can be commercially extracted.”

Antoine Simon, shale gas campaigner at Friends of the Earth Europe, an environmental NGO, commented: "EASAC’s findings are contradictory and idealistic. They presuppose 'effective regulation' when in reality regulation is patchy and inadequate, and assume the fracking industry adheres to best practice that in reality it is all too eager to disregard. The statement ignores legal analysis by the European Commission which consistently concludes that the current legal framework does not adequately address the specific, cumulative, and destructive impacts of the fracking industry. Authorities also do not have the capacity to monitor this kind of large-scale development."

"Fracking is incontrovertibly dangerous for our environment, health and climate – that is why the public is right to be concerned and why it should be banned," Simon said.

 

IEA warns against fossil fuel subsidies and the cost of nuclear power

 

Published: 14/11/2014 – 07:21

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Fossil fuels still receive 4 times more subsidies than renewable energy sources. [theverb.org/flickr]

In its 2015 World Energy Outlook, the International Energy Agency expressed its concern at fossil fuel subsidies, the dismantling of nuclear power stations and the 80% increase in demand for electricity by 2040. EurActiv France reports. 

The International Energy Agency (IEA) has released its annual publication, in which it expresses its concern at the trend in hydrocarbon consumption, which continues to rise in response to the increasing demand for electricity.

The planet's electrical demand could grow by 40% by 2040, but despite falling oil prices, supplies of coal, oil and gas are not indefinite. The continued use of hydrocarbons is speeding up global warming: the IEA predicts that average temperatures will rise by 3.6°C if we do not reduce the current rate of greenhouse gas emissions.

The strain on resources will also have a knock-on effect on energy prices. Europe's plans to reduce its reliance on hydrocarbons may lead the continent's energy prices to become the highest in the world by 2040, according to the IEA.

Evolution of energy price paid by the consumer

Beyond the question of prices, the IEA lays out its predictions for the geopolitical evolution of the hydrocarbon sectors, expecting to see strong growth in oil and gas production in Sub-Saharan Africa.

>> Read: IEA: Sub-Saharan Africa will produce more gas than Russia

The IEA predicts that production of natural gas will increase worldwide, with the exception of Europe, where production is expected to fall.

Political momentum on climate issues?

Several governments have already committed to reducing CO2 emissions before the 2015 Paris Climate Conference, despite failing agree to limit the global temperature rise to +2°C. The IEA argues that a 25% decarbonisation of the energy sector by 2040 is the key to reaching the international climate objectives.

"The joint commitment of the US and China represents a giant leap for mankind," said IEA chief economist Fatih Birol at the presentation of the report in London. This decision is vitally important because between them, these two countries produce 45% of the world's greenhouse gas emissions. He added that it would provide some "very badly needed political momentum" to the climate debate.

>> Read: Reasons to be optimistic, despite modest EU climate targets

Nuclear phase-out called into question

200 of the world's 434 nuclear reactors currently in service are due to be decommissioned in the next 25 years. The Agency is concerned both about the cost of phasing out nuclear energy and the absence of technical solutions for dealing with radioactive waste.

"We don’t yet have a permanent solution to high level nuclear waste," Fatih Birol said. "There are some temporary solutions, but how we are going to dispose of high level nuclear waste is a key issue that remains to be addressed". Europe is home to a large number of the reactors set to be decommissioned; a process the IEA estimates will cost around 100 billion dollars.

Evolution of nuclear capacity by 2040

The World Nuclear Industry Status Report showed a decline in active nuclear reactors since the Fukushima disaster. The number fell from 427 in July 2013 to 388 in July 2014.

The IEA believes that the EU will be most affected by this decline, and that the question of how to deal with nuclear waste will be above all a European problem. In 2040, one quarter of the 705 tons of nuclear waste produced world-wide since 1971 will be stored in the EU.

Fossil fuel subsidies remain a problem

Each year, the world's fossil fuels industries receive 550 billion dollars in subsidies; four times more than the renewable energies sectors.

In the context of the fight against climate change, the IEA raises doubts over the prudence of these investments, and calls for greater investment in renewables.

Investment needed to limit global temperature rise by 2040, according to IEA

The Agency also says that the only way to keep the global temperature rise down to +2°C by 2040 is to invest at least an extra 300 billion dollars in renewables and 1,000 billion dollars in energy efficiency.

Positions: 

Thomas Becker, the Chief Executive of the European Wind Energy Association, said "we have witnessed the full horror story of fossil fuel subsidies. The European Commission, the IEA and the ODI have all released documents showing the ballooning cost of supporting fossil fuels, which not only batter public finances but also make us reliant of some of the most unstable regions in the world."

Jérôme Ferrier, President of the International Gas Union, said "the development of shale gas and unconventional gas are bringing about larger and larger difficulties in perception. The gas sector has to work harder to defend its cause and to make gas more widely acceptable to the public".