COUNCIL OF THE EUROPEAN UNION,update

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 12:06 | Press release | Hybrid threats: Council paves the way for deploying Hybrid Rapid Response Teams   The Council today approved the guiding framework for the practical establishment of the EU Hybrid Rapid Response Teams. This paves the way for such teams to be deployed upon request, to prepare against and counter hybrid threats and campaigns. Hybrid Rapid Response Teams are one of the key instruments to support EU member states and partner countries in countering hybrid threats as part of the EU Hybrid Toolbox. As one of the key deliverables of the Strategic Compass, they will provide tailored and targeted short-term assistance to member states, Common Security and Defence Policy missions and operations, and partner countries in countering hybrid threats and campaigns. In a deteriorating security environment, with increasing disinformation, cyber-attacks, attacks on critical infrastructure, instrumentalised migration, and election interference by malign actors, the Hybrid Rapid Response Teams will be an important new capability of the EU to counter new and emerging threats. Background The Strategic Compass for Security and Defence, approved by the Council in 2022, calls for the development of an EU Hybrid Toolbox that brings together existing and possible new instruments to detect and respond to a broad range of hybrid threats. This includes the creation of EU Hybrid Rapid Response Teams adaptable to various hybrid threats and drawing on relevant sectoral national and EU civilian and military expertise. Council conclusions on a Framework for a coordinated EU response to hybrid campaigns, 21 June 2022 A Strategic Compass for Security and Defence, 21 March 2022

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 11:41 | Press release | Democratic resilience: Council approves conclusions on safeguarding electoral processes from foreign interference   The Council today approved conclusions on democratic resilience and safeguarding electoral processes from all forms of foreign interference. As billions of citizens cast their ballots globally in 2024 – including in the European Parliament elections – the conclusions underline that democratic resilience remains a central focus of the Council's agenda. In an evolving security environment, democracies face new challenges as malign actors are increasingly using hybrid tactics to undermine electoral processes, cast doubt on their legitimacy and discourage people from voting. In addition to information manipulation by foreign actors, which is on the rise, hybrid campaigns can also include malicious cyber activities and other elements, such as the use of artificial intelligence and deep fakes. The Council conclusions provide an overview of the various mechanisms that the EU has at its disposal to counter hybrid threats and foreign interference and to safeguard elections. Such measures include the Hybrid Toolbox, the Foreign Information Manipulation and Interference (FIMI) Toolbox and the Hybrid Rapid Response Teams, which provide a framework for a coordinated response to hybrid campaigns, as well as the Digital Services Act, the strengthened Code of Practice on Disinformation, the European Media Freedom Act and various coordination networks. In view of the upcoming European Parliament elections, the Council calls on EU institutions and member states to step up action to monitor attempts by foreign actors to interfere in the EU's democratic process. It invites the EU High Representative for Foreign Affairs and Security Policy and the Commission, together with the member states, to maximise the use of all established mechanisms, networks and tools in order to ensure close cooperation within the EU and support the integrity of elections, without impeding open democratic debate. The Commission is invited to continue its work with online platforms, as well as its close cooperation with civil society, academia and fact checkers, and information exchange with member states, to counter foreign interference and disinformation in the digital space. The Council also stresses the critical role of free, independent and pluralistic media and the need to foster digital and media literacy among citizens to strengthen overall societal resilience to foreign information manipulation and interference. Background In the context of the upcoming European elections, raising awareness of foreign interference in the electoral processes and protecting elections from all forms of foreign interference has been an important priority for the EU institutions and the member states. This issue was underscored by EU leaders at their meeting on 17-18 April, when they highlighted the determination of the EU and its member states to closely monitor and contain any risks stemming from disinformation and foreign interference in electoral processes. Leaders invited the EU institutions and national authorities to cooperate on such matters.  Following up on that call, on 24 April 2024 the Belgian presidency of the Council decided to activate the Council's Integrated Political Crisis Response (IPCR) arrangements in information-sharing mode to provide political decision-makers with a clear picture of developments as regards foreign interference in the European elections, contribute to preparedness and support a fast and coordinated response at EU level. Council conclusions on democratic resilience: safeguarding electoral processes from foreign interference, 21 May 202 Foreign interference: Presidency reinforces exchange of information ahead of the June 2024 European elections (press release, 24 April 2024) Cybersecurity: how the EU tackles cyber threats (background information) Top cyber threats in the EU (infographic)

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 11:52 | Press release | EUDA: Council establishes the first ever European Union Diplomatic Academy to train EU diplomats   The Council today established the European Union Diplomatic Academy (EUDA). The EUDA will provide education and training in the field of the EU’s external action, in particular the Common Foreign and Security Policy, to member states’ diplomats and EU institutions’ staff members working in the field of external relations, with the objective of developing and promoting a common understanding of the EU’s role in the world, disseminating best practices in relation to the conduct of the EU’s diplomacy, and consolidating the spirit of a ‘European diplomatic corps’. The academy will ultimately contribute to the creation of a critical mass of European diplomats who possess a deeper understanding of the EU’s principles, objectives, values, interests and global role, and who are able to perform effectively, whether posted in Brussels, in EU delegations or within their national structures, when dealing with EU matters and addressing its strategic challenges. The education and training activities will be implemented in partnership with the College of Europe, a renowned institute with long-standing experience in EU external action education and training, for the period covering the four academic years from 2024-2025 to 2027-2028. The EUDA will work under the responsibility of the High Representative for Foreign Affairs and Security Policy, and will receive guidance by a Steering Committee composed of one representative appointed by each member state, plus representatives of the European Parliament, the Council and the Commission. The financial reference amount intended to cover the expenditure of the training programme during the period from 1 July 2024 to 30 June 2025 will be just over €1,7 million. Background In 2021, the European Parliament proposed a pilot project entitled ‘Towards the creation of a European Diplomatic Academy.’ The aim of that initiative was to support the development of a common diplomatic culture based on a EU perspective and ultimately strengthen the EU’s role as an effective foreign policy actor. The first pilot phase was launched and run with the support of the College of Europe over the academic year 2022/23, and then followed by a second pilot phase, over the academic year 2023/24. European Diplomatic Academy: Towards the future of EU diplomacy (EEAS website) The European Diplomatic Academy (Pilot Project)

 

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 10:30 | Press release | Electricity market reform: Council signs off on updated rules   Consumers across the EU will now be able to benefit from more stable energy prices, less dependency on the price of fossil fuels and better protection from future crises, on the way to a carbon-free European Union. Today marks an EU milestone towards a carbon-free and greener future for all. With the adoption of the electricity market reform, we are empowering consumers, ensuring security of supply, and paving the way for a more stable, predictable, and sustainable energy market. Tinne Van der Straeten, Belgian Minister for Energy More stable and predictable energy prices while ensuring efficient market functioning and avoiding distortions of the internal market Power purchase agreements (PPAs) are long-term contracts that provide stability for customers and investors; the updated rules promote their uptake and cut unnecessary red tape and charges. In line with their decarbonisation plans, member states may further support investment in renewables under power purchase agreements, including by setting up guarantee schemes. Moreover, member states will also use two-way contracts for difference (CfDs), or equivalent schemes with the same effects, for their direct price support schemes, in order to support new investments in electricity generation and make sure electricity prices are less affected by price volatility of fossil fuel-based markets. Under a two-way contract for difference with a public entity, energy generators would be protected with minimum remuneration while it should be ensured that they operate and participate efficiently in the electricity markets and react to market circumstances. In high price periods, they would have to pay back excess revenues, which can then be distributed to final customers (while avoiding distortions to competition and trade in the internal market), be invested to reduce electricity costs for final customers or used to develop distribution grids. Two-way contracts for difference can apply to investments in new power-generating facilities based on wind energy, solar energy, geothermal energy, hydropower without reservoir and nuclear energy. Better prepared against future crises The new rules give the Council the power to declare a crisis, on the basis of a Commission proposal, in the event of very high prices in wholesale electricity markets, or if there is a sharp increase in electricity retail prices. Action to be taken by member states in case of a declared electricity crisis includes already existing measures under the current EU rules, such as further reduction of electricity prices for vulnerable and disadvantaged customers. Member states should also prevent any undue distortion of the internal electricity market, including by ensuring level-playing field for suppliers during the crisis period. Protecting and empowering consumers Member states will reinforce their measures to protect vulnerable and energy poor customers, including banning disconnections. The reform also further encourages energy sharing schemes, in complement to the existing provisions on renewable energy communities and citizen energy communities. Ensuring security of supply On the way to a carbon-free system, the so-called capacity mechanisms – measures introduced by member states to address capacity adequacy concerns – will become a more structural element of the electricity market and will no longer be temporary measures. This will improve security of supply and will enhance flexibility, as the share of renewables will gradually increase. Next steps The electricity market regulation formally adopted today amends the current electricity regulation, together with targeted changes in the ACER regulation. It will now be signed and published in the Official Journal of the EU.  It will enter into force on the twentieth day following publication and will then become directly applicable in all member states. For reasons of legal certainty and clarity, the provisions on amending the current electricity directive and the renewables directive have been split from the proposed regulation and have become a self-standing directive, also formally adopted today. EU member states will have up to six months to adapt their national legislation to the provisions of the electricity market directive. Background The Commission presented the proposals on the reform of the EU’s electricity market design on 14 March 2023, as a response to the high and volatile energy prices in 2022. The reform package included the electricity market design regulation together with a proposal for a regulation to protect against market manipulation in the wholesale energy market, which was formally adopted by the Council on 18 March 2024. Negotiations on the electricity market reform between the two co-legislators, the Council of the European Union and the European Parliament, started on 19 October 2024 and were concluded within less than two months, on 13 December 2023, when a provisional agreement was reached. Electricity market regulation Electricity market directive Meeting voting results Reform of electricity market design: Council and Parliament reach deal (press release, 14 December 2023) Wholesale energy markets: Council adopts law to protect against market manipulation (press release, 18 March 2024) Electricity market reform (background information) EU response to Ukraine invasion (background information) The energy leap (feature story) Energy prices and security of supply (timeline)

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 10:24 | Press release | Fit for 55: Council signs off on gas and hydrogen market package   Today, the Council adopted a regulation and a directive establishing common internal market rules for renewable and natural gases and hydrogen and reforming the existing EU gas legislation. The new rules will help make the shift to renewable and low-carbon gases, in particular hydrogen, in the energy system, with a view to achieving the EU’s decarbonisation targets. Designing the gas and hydrogen market The gas package sets out solid rules for the organisation of the natural gas market and establishes a strong framework for the development of the future hydrogen market, including for dedicated hydrogen infrastructure. It contains specific rules for the transport, supply and storage of natural gas and hydrogen. The new rules call for integrated and transparent network planning across the EU, under the principle of ‘energy efficiency first’ and with a forward-looking approach. Gas and hydrogen network operators will prepare a 10-year EU network development plan. This texts also paves the way for a permanent demand aggregation platform. Switching to renewable gas In order to ensure the phase-out of fossil fuels, long-term contracts for fossil gas will no longer be concluded as of 2049. The new rules promote the penetration of renewable gas and low-carbon gas, in particular hydrogen in coal and carbon-intensive regions. Member states will provide for tariff discounts and incentives, in order to facilitate their market and system integration, especially for the nascent hydrogen market, and so to ensure a just transition. A voluntary mechanism will also be set up to support the hydrogen market for five years. Protecting customers from energy poverty Vulnerable customers and customers affected by energy poverty will be better protected thanks to the new rules adopted today, which include a focus on remote areas. Measures by member states include protection from disconnections and appointing suppliers of last resort to ensure continuity of supply. Next steps The regulation and the directive will now be signed and published in the Official Journal of the European Union. The regulation will become directly applicable six months after its publication. As regards the directive, member states will have two years to adapt their national legislation to the provisions of the directive. Background The hydrogen and decarbonised gas markets package is part of the Fit for 55 batch of legislation and aims to update the existing regulation and directive on gas adopted in 2009. The updated regulation and directive, both formally adopted today, were put forward as a proposal by the Commission on 15 December 2021. Negotiations with the European Parliament on the final shape of the texts started on 1 June 2023. A final deal on the directive was reached on 27 November and on the regulation on 8 December 2023. Regulation on the internal markets for renewable gas, natural gas and hydrogen Directive on common rules for the internal markets for renewable gas, natural gas and hydrogen Meeting voting results Fit for 55 (background information) Gas package: Council and Parliament reach deal on future hydrogen and gas market (press release, 8 December 2023) Internal markets in renewable and natural gases and in hydrogen: Council and Parliament reach deal (press release, 28 November 2023)

Press material Tuesday, 21 May 2024

● Council of the EU   21/05/2024 10:20 | Press release | Artificial intelligence (AI) act: Council gives final green light to the first worldwide rules on AI   Today the Council approved a ground-breaking law aiming to harmonise rules on artificial intelligence, the so-called artificial intelligence act. The flagship legislation follows a ‘risk-based’ approach, which means the higher the risk to cause harm to society, the stricter the rules. It is the first of its kind in the world and can set a global standard for AI regulation.  The new law aims to foster the development and uptake of safe and trustworthy AI systems across the EU’s single market by both private and public actors. At the same time, it aims to ensure respect of fundamental rights of EU citizens and stimulate investment and innovation on artificial intelligence in Europe. The AI act applies only to areas within EU law and provides exemptions such as for systems used exclusively for military and defence as well as for research purposes. The adoption of the AI act is a significant milestone for the European Union. This landmark law, the first of its kind in the world, addresses a global technological challenge that also creates opportunities for our societies and economies. With the AI act, Europe emphasizes the importance of trust, transparency and accountability when dealing with new technologies while at the same time ensuring this fast-changing technology can flourish and boost European innovation. Mathieu Michel, Belgian secretary of state for digitisation, administrative simplification, privacy protection, and the building regulation Classification of AI systems as high-risk and prohibited AI practices The new law categorises different types of artificial intelligence according to risk. AI systems presenting only limited risk would be subject to very light transparency obligations, while high-risk AI systems would be authorised, but subject to a set of requirements and obligations to gain access to the EU market. AI systems such as, for example, cognitive behavioural manipulation and social scoring will be banned from the EU because their risk is deemed unacceptable. The law also prohibits the use of AI for predictive policing based on profiling and systems that use biometric data to categorise people according to specific categories such as race, religion, or sexual orientation.  General purpose AI models The AI act also addresses the use of general-purpose AI (GPAI) models. GPAI models not posing systemic risks will be subject to some limited requirements, for example with regard to transparency, but those with systemic risks will have to comply with stricter rules.  A new governance architecture To ensure proper enforcement, several governing bodies are set up: An AI Office within the Commission to enforce the common rules across the EU A scientific panel of independent experts to support the enforcement activities An AI Board with member states’ representatives to advise and assist the Commission and member states on consistent and effective application of the AI Act An advisory forum for stakeholders to provide technical expertise to the AI Board and the Commission  Penalties The fines for infringements to the AI act are set as a percentage of the offending company’s global annual turnover in the previous financial year or a predetermined amount, whichever is higher. SMEs and start-ups are subject to proportional administrative fines.  Transparency and protection of fundamental rights Before a high-risk AI system is deployed by some entities providing public services, the fundamental rights impact will need to be assessed. The regulation also provides for increased transparency regarding the development and use of high-risk AI systems. High-risk AI systems, as well as certain users of a high-risk AI system that are public entities will need to be registered in the EU database for high-risk AI systems, and users of an emotion recognition system will have to inform natural persons when they are being exposed to such a system. Measures in support of innovation The AI act provides for an innovation-friendly legal framework and aims to promote evidence-based regulatory learning. The new law foresees that AI regulatory sandboxes, enabling a controlled environment for the development, testing and validation of innovative AI systems, should also allow for testing of innovative AI systems in real world conditions.  Next steps After being signed by the presidents of the European Parliament and of the Council, the legislative act will be published in the EU’s Official Journal in the coming days and enter into force twenty days after this publication. The new regulation will apply two years after its entry into force, with some exceptions for specific provisions.  Background The AI act is a key element of the EU’s policy to foster the development and uptake across the single market of safe and lawful AI that respects fundamental rights. The Commission (Thierry Breton, commissioner for internal market) submitted the proposal for the AI act in April 2021. Brando Benifei (S&D / IT) and Dragoş Tudorache (Renew Europe / RO) were the European Parliament’s rapporteurs on this file and a provisional agreement between the co-legislators was reached on 8 December 2023. Regulation laying down harmonised rules on artificial intelligence (artificial intelligence act), 21 May 2024 Artificial Intelligence Act, Text of the provisional agreement, 2 February 2024 Artificial intelligence act, Commission proposal, 14 April 2021 A European approach to artificial intelligence (European Commission information) A digital future for Europe (background information) Your life online: how the EU is making it easier and safer for you (feature story) Artificial intelligence (background information)