News

On 22/08/2020, the Commission launched a public consultation on EU Green Deal (carbon border adjustment mechanism). Europe’s efforts to go climate-neutral by 2050 could be undermined by lack of ambition by international partners, which, according to the Commission, would mean a risk of carbon leakage. This happens when companies relocate production to countries that have less stringent emissions regulations. In that case, there would be no reduction in global emissions. This risk could be avoided through a new mechanism that sets a carbon price on imports of certain goods from outside the EU. The consultation is open until 28/10/2020.
More information is available here.

US Agriculture Secretary Sonny Perdue said last week that the EU’s Green Agreement and the goals of the Farm to Fork strategy would weaken the competitiveness of the European agricultural sector and protectionism in international trade policies. According to Perdue, the Farm to Fork strategy and the Biodiversity strategy, both part of the Green Deal, will lead to a decline in EU agricultural production, jeopardize the viability of European farmers and reduce their ability to figure on world markets.
More information is available here.

Covid-19 was confirmed last week in the largest Polish slaughterhouses focused on poultry processing, 75 employees were infected, and another 394 employees are in quarantine. Following its own cases of coronavirus in slaughterhouses, Germany submitted proposals last week for new rules for slaughterhouses to prevent the further spread of the disease in the future. With effect from January 2021, Germany proposes a ban on subcontracting services, and with effect from April 2021, a ban on short-term employment contracts. Slaughterhouse controls should also be strengthened.
More information is available here and here.

On 20/07/2020, the European Council adopted an opinion on the EU's Multiannual Financial Framework (including the budget for the EU recovery plan) totalling €1.82 trillion. The Council proposes to introduce a tax on non-recycled plastic packaging of €0.80 per kilogram as part of its own new resources, which should be introduced as early as January 2021. The European Commission estimates that the introduction of the tax could contribute €6.6 million per year to the European budget. The decision whether to levy the tax on industry or on consumers should be taken at Member State level. The biggest taxes should be paid by France, Germany, and Italy. The funds raised through taxes should be used to cover part of the cost of the EU's recovery plan, which was approved by the Council at €750 billion. The proposal to introduce a tax must be approved by the European Parliament (the plenary vote should take place in mid-September 2020) and must then be ratified by all EU Member States.

On 30/07/2020, the Council of the European Union approved new rules on the harmonisation of the structures of excise duties on alcohol and alcoholic beverages. The new rules will ensure that small and artisan alcohol producers have access to a new EU-wide certification system confirming their access to lower excise duty rates across the Union. The rules will also allow the use of reduced tax rates for beer with a lower alcohol content, the maximum alcohol limit will be increased to 3.5% (the current limit was 2.8%). The new rules will enter into force on January 2022.
More information is available here and here.