COUNCIL OF THE EUROPEAN UNION,update

 

Press material Thursday 21 December 2023

● Council of the EU   21/12/2023 11:55 | Press release | EU-UK relations: Council greenlights extension of current rules of origin for electric vehicles until the end of 2026   Today the Council approved a proposal to give manufacturers of electric vehicles in the EU and the UK more time to comply with the local content requirements for electric vehicles and batteries under the EU-UK Trade and Cooperation Agreement. It adopted a decision which will allow the EU to agree with the UK on the extension of the current rules of origin for electric vehicles and batteries until 31 December 2026. This will prevent the entry into force of more stringent rules from 1 January 2024 and the application of a 10% tariff on goods traded between the EU and the UK which do not meet those requirements. The industry is expected to be able to adapt to the higher local content requirements by 2027 by expanding battery production for electric vehicles in this period. Support in the order of €3 billion will be provided for this purpose under the Innovation Fund. The extension of the current rules of origin is complemented by a lock-in mechanism, which ensures that the full regime for local content requirements under the Trade and Cooperation Agreement will apply as from 2027, as set out in that agreement. Consequently, no changes will possible before 2032. Next steps The extension of the current rules is due to be decided by the EU-UK Partnership Council, which has been set up under the EU-UK Trade and Cooperation Agreement, before the end of the year. Background Under the EU-UK Trade and Cooperation Agreement, only those electric vehicles that comply with the rules of origin, which define the required local content for electric vehicles and their batteries, can benefit from tariff-free trade. The agreement provides for a two-stage phasing in of the local content requirements, with the second stage starting on 1 January 2024 and the full regime on 1 January 2027. The rules were designed to incentivise investment in a battery manufacturing capacity in the EU and in the UK. The extension of the current rules was proposed by the Commission on 6 December 2023. It was understood that the battery industry could not get off the ground as fast as expected against the background of Russia’s war of aggression against Ukraine, COVID-19’s impact on supply chains and the competition from new international subsidy support schemes, which made it more difficult for electric vehicle manufacturers to comply with the rules of origin under the Trade and Cooperation Agreement. In order to further support the development of the battery market in the EU, on 6 December 2023 the Commission also announced the creation of a dedicated instrument under the Innovation Fund, which will provide up to €3 billion of additional funding to boost the EU's battery manufacturing industry. European Commission press release, 6 December 2023 EU relations with the United Kingdom (background information)

Press material Wednesday 20 December 2023

● Council of the EU   20/12/2023 16:04 | Press release | Legal migration: Council and Parliament reach deal on a Single Permit Directive   Today member states’ representatives to the Council (Coreper) confirmed the provisional agreement between the Spanish presidency of the Council and the European Parliament on an update of an EU law that deals with legal migration to the EU labour market. The updated rules streamline the procedure to apply for a permit to reside for the purpose of work in the territory of a member state. This will give a boost to international recruitment of talent. In addition, more rights for third-country workers and their equal treatment compared to EU workers will reduce labour exploitation. "Many employers are facing a tense labour market situation. The proposal we have agreed on today is a response to this situation of shortages as it will result in a smooth and predictable process for third-country nationals to apply for work and residence permit in one go." Elma Saiz, Spanish Minister for the inclusion, Social security and migration The single permit directive sets out the application process for EU countries to issue this single permit and establishes common rights for workers from third countries. Member states keep the final say about which and how many third-country workers they want to admit to their labour market. Application procedure A third-country worker can submit an application from the territory of a third-country or, according to the agreement reached between the co-legislators, from within the EU if he or she is a holder of a valid residence permit. When a member state decides to issue the single permit this decision will serve both as residence and as work permit. Duration The Council and European Parliament decided that issuing a single permit should be made within three months after receipt of the complete application. This period also covers the time needed to check the labour market situation before a decision on the single permit is adopted. Member states will then issue the requisite visa to allow initial entry into their territory. Change of employer Single permit holders will have the possibility to change employer, subject to a notification to the competent authorities. Member states may also require a minimum period of time during which the single permit holder is required to work for the first employer. In case of loss of employment, third-country workers are allowed to remain in the territory of the member state if the total period of unemployment does not exceed three months during the validity of the single permit or six months after two years of the permit. Background and next steps The current single permit directive dates back to 2011. On 27 April 2022, the Commission proposed an update of the 2011 directive. The proposal is part of the "Skills and talent" package which addresses the shortcomings of the EU as regards legal migration and has as objective to attract the skills and talent the EU needs. Eurostat data from 2019 show that 2 984 261 single permit decisions were reported by member states of which 1 212 952 were for issuing first permits. The other decisions were for renewing or changing permits. Following today’s approval, the text will now have to be formally adopted by both the Council and European Parliament. How the EU manages migration flows (background page)

Press material Wednesday 20 December 2023

● Council of the EU   20/12/2023 16:04 | Press release | Child sexual abuse: Council paves the way for prolonging protection measure   EU member state ambassadors agreed on the Council’s negotiating mandate for a regulation prolonging an interim measure to combat online child sexual abuse. "We owe it to our children to do everything we can to fight child sexual abuse. The agreement today on a member state position is a small but important step in this ongoing struggle." Fernando Grande-Marlaska Gómez, Spanish Minister for the Interior In 2021, the EU adopted a law which allows providers of certain online services to derogate from data protection rules in the electronic communications sector. Providers of so-called number-independent interpersonal communications services (e.g. messaging services) were permitted to use specific technologies for the processing of personal and other data to detect online child sexual abuse on their services, to report and to remove it. This derogation was limited in time and would expire on 3 August 2024. It was meant to bridge the gap until a new EU law, currently on the table of the Council and the European Parliament, would provide for a permanent legal framework for the detection of online child sexual abuse material. The regulation on which EU member state ambassadors reached their common position today will extend the interim measure until 3 August 2027. Next steps Today’s agreement on a common position allows the Council to start negotiations with the European Parliament on a final legal text. Background The proposal for a regulation to prolong the interim measure was published by the European Commission on 30 November 2023. It proposed to extend the period of application by two years (rather than three years as in the Council position).

20/12/2023 | Article The Spanish presidency reaches an agreement on new EU fiscal rules The Spanish presidency has reached a political agreement from the 27 member states of the European Union on reforming fiscal rules during the Economic and Financial Affairs Council (Ecofin) held this Wednesday by videoconference.

Press material Thursday 21 December 2023

● Council of the EU   21/12/2023 14:09 | Press release | Economic governance review: Council agrees on reform of fiscal rules   Member states’ EU ambassadors today formally agreed on the proposed reform of the EU’s economic governance framework by approving a mandate for negotiations with the European Parliament on the preventive arm regulation and an agreement in principle with a view to consulting the European Parliament on the corrective arm regulation and the directive on requirements for national budgetary frameworks. This will pave the way for negotiations with the Parliament on the preventive arm regulation early next year. "With the reform of the economic governance framework, we ensure balanced and sustainable public finances and the protection of investment, growth and job creation throughout the EU. We are convinced that the new rules will be effective, support the EU’s objectives and dramatically improve our existing framework." Nadia Calviño, First Vice-President of the Government of Spain and Minister for Economy, Trade and Companies