Digital Single Market Policy

As we enter the summer recess period, the Commission has not launched any further substantive legislative initiatives on the Digital Single Market. Instead, it is bringing two public consultations to a close over the next month: (i) on cross-border parcel delivery (on August 8) and (ii) on contract rules for online purchases of digital content and tangible goods (on September 3). A third ongoing consultation on the review of the Audiovisual Media Services Directive will close on September 30. All three consultations focus on the elimination of cross-border barriers to trade in goods and services, and call on citizens and organisations alike to participate.

On July 22-23, Commissioner Jourová, Vice-President Ansip and other key EU officials met with U.S. Commerce Secretary Pritzker to discuss the status of negotiations on the Safe Harbour arrangement. Despite remaining concerns on issues on liability, Commissioner Jourová aims to finalize the discussions “in the coming weeks.” See press release here.

On July 23, the Directorate General for Competition sent a Statement of Objections to six major Hollywood studios (Disney, NBCUniversal, Paramount Pictures, Sony, Twentieth Century Fox, and Warner Bros) and Sky UK. It is the Commission’s preliminary view that certain clauses in content licensing agreements between Sky UK and the Hollywood studios prevent the former from accepting unsolicited requests for its pay TV services from customers located in other EU Member States, where Sky UK is not actively promoting its services there (passive sales). The parties now have an opportunity to reply in writing to the allegations and request an oral hearing. The Commission continues to examine pay TV services in France, Germany, Italy, and Spain and may launch further investigations in these countries. See press release here.

Energy and Climate Change Policy

The Council of the European Union adopted legislation necessary for the European Union to formally ratify the second commitment period of the Kyoto Protocol (2013-2020). The adopted legislation consists of a Council Decision on the conclusion on behalf of the European Union, the Doha Amendment to the Kyoto Protocol, and a Council Decision on the agreement between the EU, its Member States, and Iceland—necessary for the joint fulfilment of the second commitment period of the Kyoto Protocol. The adopted legislation ties the EU Emissions Trading System to the Kyoto Protocol’s international scheme.

Regarding unconventional fossil fuels, the European Commission recently announced that by the end of the year, it will decide on whether its non-binding Recommendation on minimum principles for the exploration and production of hydrocarbons (such as shale gas) using high-volume hydraulic fracturing of January 2014 provides enough environmental protection, or if further steps—such as a mandatory legislative proposal—are needed. In this context, on June 29, the Commission organized an event with stakeholders to discuss the effectiveness of the Recommendation.

In addition, on July 31, the Commission launched a call for expressions of interest to contribute to the work of the Technical Working Group (TWG) which will draft the Best Available Techniques Reference Document (“BREF”) on Hydrocarbons. The Hydrocarbons BREF aims to cover environmental impacts and risks of hydrocarbons exploration and extraction activities. In practice, national authorities are unlikely to give permits for oil and gas exploration and extraction projects unless they comply with the BREF. The kick-off meeting of the TWG will take place on October 13-15 in Brussels. The first draft of the BREF is expected in January 2017. 

Internal Market and Financial Services Policies

After weeks of crisis and a serious risk of having Greece leaving the Eurozone, on July 13, after 17 hours of very divisive discussions, the European Council reached a political agreement on a new 3-year financial assistance programme for Greece. As a first measure, Athens has been granted a bridge loan of €7.16bn, to be paid out of the European Financial Stability Mechanism. In the meantime Greece and the European Commission, in cooperation with the European Central Bank and IMF, are negotiating a new Memorandum of Understanding (MoU) on a 3-year and €86bn aid package. Addressing the concerns on the sustainability of Greece’s sovereign debt, the Council restated its 2012 commitment to consider longer grace and payment periods on the existing loans, after the first positive review of the new MoU by the Troika. However, the Greek Prime Minister Alexis Tsipras faces increasing opposition to the bailout programme from within his party Syriza. It remains to be seen whether he will be able to conclude the negotiations on the MoU and pass it through the Greek parliament.

Meanwhile, a renewed consensus is emerging on the need to restructure the European Monetary Union. Among the ideas mentioned in the report of the five presidents issued in June is to create a separate budget for the Eurozone, with its own administration and maybe even tax system. Frans Timmermans, First Vice-President of the Commission, recently announced in the European Parliament that the Commission will propose a comprehensive ‘EMU Package’ before the end of the year, which might give an indication of what will follow.

In July, the Commission also launched a new consultation on the capital requirement rules for banks, which were introduced in the wake of the financial crisis. The consultation focuses on how the new requirements have affected bank lending. Lending to small and medium-sized enterprises (SMEs) as well as long-term investments into infrastructure, for example, are of particular concern to the Commission. The feedback collected will be used in a report expected in 2016.

On July 29, the European Systemic Risk Board (ESRB) published two reports relating to the European Markets Infrastructure Regulation, (Regulation 548/2012) (EMIR). The first ESRB report considers the issue of the efficiency of margining requirements to limit pro-cyclicality and the need to define additional intervention capacity in this area. The second ESRB report addresses issues to be considered other than margining requirements.

On July 29, the European Banking Authority (EBA) published a consultation paper (EBA/CP/2015/13) on draft guidelines on co-operation agreements between deposit guarantee schemes (DGSs). These Guidelines form a part of the EBA’s work to promote a consistent and coherent approach to co-operation agreements between DGSs across the EU. The recast Deposit Guarantee Schemes Directive (2014/49/EU) (DGSD) requires that, to facilitate effective cooperation between DGSs, the DGSs (or, where appropriate, the designated authorities) shall have written cooperation agreements in place. The draft guidelines specify the objectives and minimum content of these cooperation agreements. The deadline for responses to the Consultation is October 29, 2015.

Life Sciences and Healthcare Policies

The European Medicines Agency (EMA) has revised its guidelines on the application of the accelerated assessment procedure and on the conditional marketing authorisation for medicines that address “unmet medical needs.” Based on the experience of recent years, the revised guidelines should optimise the procedures and allow for more medicines to reach patients earlier. The guidelines encourage companies to plan in advance for applying to these assessments and to engage in an early dialogue with the EMA. The revised guidelines are open to a two-month public consultation on the revision, until September 30, 2015.

Trade Policy and Sanctions

On July 14, 2015, the five permanent members of the UN Security Council plus Germany, under the chairmanship of EU High Representative Federica Mogherini, reached a final agreement with the Islamic Republic of Iran on its nuclear programme. The Joint Comprehensive Plan of Action (JCPOA) includes the lifting of all UN Security Council sanctions as well as multilateral and national sanctions related to Iran’s nuclear programme. Please find here a more detailed account of the sanctions relief. The lifting of most sanctions will happen at the beginning of 2016, after the fulfilment of Iran’s commitments have been verified.

On July 28, the European Commission adopted a new delegated act to modernise the EU Customs Union. The act specifies the procedures and formalities to be followed at European customs. The delegated act will now be considered by the European Parliament and the Council. This follows several years of work on modernizing the European customs rules. The basic regulations were changed in 2013 in the Union Customs Code. The substantive provisions of the new legislation will apply as of May 1, 2016.