Upcoming voting for European representatives - The European Parliament possesses a role in these financial matters.
Are European lawmakers or their aides receiving funds from Qatar, China, or Russia? These questions are currently being examined. Non-EU nations are increasingly aiming to control and manipulate Europe - and may have taken steps to involve European representatives in this process.
Investigations into the "Katar-Gate" corruption scandal of 2022 involving Greek Vice President Eva Kaili are ongoing. At the same time, an aide to German AfD candidate Maximilian Krah is being scrutinized: Jian G. is accused of multiple times passing along information about European Parliament negotiations and decisions on behalf of a Chinese secret service. The Federal Prosecutor's Office labels this "agent activity for a foreign secret service in a particularly serious case." Krah's association with the Committee on International Trade also piqued the interest of alleged Chinese spies.
In an interview with "Sueddeutsche Zeitung," Krah rejects claims that Jian G. had access to classified documents. However, these allegations also highlight the fact that the European Parliament has a larger role in economic policy than is commonly perceived - extending even to the handling of essential geopolitical information. The 751 current members should not be underestimated. While they lack veto power, they are involved in numerous decision-making processes in conjunction with the EU Commission and the Council. Here's an overview:
1. Foreign Trade
The EU Commission negotiates trade and investment agreements with non-EU countries on behalf of the member states, who grant them a mandate. This typical task is often kept secret. To avoid being outmaneuvered strategically and tactically by the other side, silence is also maintained about the negotiations' details - such as potential market openings or sensitive issues concerning food and environmental standards. European parliamentarians receive access to specific text passages or position papers, but only with limited access and a confidentiality obligation. The parliament also has the right to propose changes to the mandates.
Trade agreements between the EU Commission and the Council cannot take effect without the approval of the parliament for the result. This gives parliamentarians considerable influence over the content of the negotiations. For instance, the EU-Vietnam Free Trade Agreement, ratified by the parliament in 2020, contains provisions on ecological, social, and democratic sustainability for the first time. At the urging of the representatives, Vietnam pledged to improve labor rights: by ratifying agreements with the International Labor Organization on the abolition of forced labor and the freedom of association.
In response to the 2017 provisional trade agreement with Canada (CETA), the parliament altered it to improve worker, consumer, and environmental standards. Economists insist that, during the 2019 European elections, participants should agree to new trade agreements with strategic partners to strengthen the EU's geopolitical stance, including securing vital raw materials such as from Australia, Malaysia, and the Mercosur states.
The parliament has considerable influence over the EU's financial priorities. It can proposal changes to the EU Commission's budget and must endorse the final budget. During the 2020 trade negotiations, MEPs secured an increase in funding for key initiatives like EU4Health (Health), Horizon (Research), and Invest EU (Investment Program) by 16 billion euros. They allocated more resources for environmental aims and small and medium-sized businesses afflicted by the coronavirus pandemic.
The Invest EU program grants 26 billion euros in guarantees from the EU budget. It aims to foster strategic investments from private and public funds totaling 400 billion euros from 2021-27. Invest EU is part of the Next Generation EU recovery fund. This stimulus package worth 750 billion euros aims to alleviate the effects of the pandemic and reinforce the European economy's resilience. The majority of funds are designated for promoting the digital and green transition. At the parliament's insistence, 30% of EU funds are allocated for climate protection.
3. Competition policy
A competitive market acts as a catalyst for quality, affordable prices, and innovations. The EU Parliament is in charge of ensuring that the internal market functions and that consumers' economic interests are safeguarded. It also monitors the EU Commission's competition policy, can investigate breaches, and can issue investigative orders.
In the most recent report on competition policy, briefer cartel procedures are advocated. Additionally, there's a warning against a subsidy race with the "US Inflation Reduction Act" and the acknowledgment that subsidies should be selective, temporary, and with added value for strategically significant projects.
The Parliament has long championed protecting European internet users from the dominance of US tech giants. In a statement, EU requirements for digital rights and fundamental principles were formulated. This was followed by shaping the landmark laws on digital services and digital markets, as well as the first comprehensive effort to regulate artificial intelligence. In this way, the Parliament contributes to preventing market monopolies and dominance.
4. Industrial policy
A competitive industry fosters quality, low prices, and innovation. The EU Parliament is tasked with ensuring that the internal market operates and protecting consumers' economic interests. It also monitors the EU Commission's industrial policy, can investigate breaches, and can issue investigative orders.
In their latest report on competition policy, they demanded shorter cartel proceedings. Additionally, they raised concerns about a subsidies race due to the "US Inflation Reduction Act." They stated that subsidies should only be granted selectively, temporarily, and with added value for strategically important projects.
Parliamentarians were one of the first institutions to advocated for protecting European online users from the dominance of US tech giants. In a statement, EU stipulations for digital rights and basic principles were detailed. This was followed by co-shaping the groundbreaking rules for online platforms. In addition, they helped create the groundbreaking laws on digital services and digital markets. They also played a major role in the first comprehensive attempt to regulate artificial intelligence. In this manner, the Parliament contributes to preventing monopolies and dominance.
In recent years, the European Union (EU) has emphasized the green and digital transformation in its economic policies. The European Green Deal, spearheaded by the EU Commission President Ursula von der Leyen, serves as the framework for these efforts. Industrial policy is integral to achieving climate neutrality by 2050, which is a crucial goal of the Green Deal.
The European Parliament plays a vital role in shaping these policies. It has considerable influence on the EU budget, advocating for environmental and small business interests and regulating digital platforms and artificial intelligence. However, not all parts of the Green Deal remain unchanged, as some have been weakened or altered by the Parliament. For example, those within Leyen's own European People's Party have tried to water down certain aspects of the Green Deal, leading to concerns about its future.
As the EU pushes for a transition to a more sustainable and competitive economy, the role of the Parliament will become even more crucial. Scientists predict that the parliament will scrutinize green solutions more closely, with an eye towards their economic impact. If there is a rightward shift in the political landscape after the upcoming election, some aspects of the Green Deal may not be implemented or may even be reversed.
In April 2021, the heads of state and government passed a new "Competitiveness Deal." This deal emphasizes the internal market, bureaucracy reduction, research and innovation, and trade.
5. Sustainable Policy
The Corporate Sustainability Due Diligence Directive (CSDDD) has faced criticism since it was first proposed in the Commission's action plan for "Sustainable Finance" in 2018. This plan led to expanded responsibilities for corporate sustainability reporting and the development of the EU taxonomy. The initial position of the European Parliament contained numerous amendments to the CSDDD, totaling 381 proposals. After intensive negotiations with the EU Commission and the Council, the directive on human rights and environment-related due diligence was softened, but eventually adopted.
The Social Democratic rapporteur for the CSDDD highlighted the shift in society's perception of companies' role, stating, "The future belongs to companies that treat people and the environment sustainably, and not to those who have made a business model out of exploitation and environmental damage."
During this legislative period, the European Parliament also passed laws addressing deforestation-free supply chains, conflict minerals, and banning products made with forced labor on the EU market.
Read also:
- The upcoming European elections provide an opportunity for citizens to exercise their right to have a say in the EU's economic policy, which includes shaping the budget and influencing foreign trade agreements, as they are approved by the European Parliament.
- Concerns about foreign interference in the EU's political processes have led to investigations in the European Parliament, highlighting the need for increased transparency and accountability in financial matters, especially in the context of European elections.
