THE BRITISH CHAMBER | EU VIRTUAL STRASBOURG 2021 & BRUSSELS PRESENTS: KINDLY SPONSORED BY: Sponsored by Liberty ...

THE BRITISH CHAMBER | EU
  & BRUSSELS PRESENTS:
VIRTUAL STRASBOURG 2021

       KINDLY SPONSORED BY:

VIRTUAL STRASBOURG 2021

EXECUTIVE SUMMARY

On the 9th and 10th of March 2021, BritCham had the pleasure of hosting our first Virtual
Strasbourg event. The event brought participants from a range of business and governmental
spheres together and provided the opportunity to hear speakers from the EPP, S&D, RE,
Green/EFA, GUE/NGL and ID groups in the European Parliament. These speakers brought a diverse
range of perspectives and represented a variety of EU regions including Malta, Italy, Germany,
Spain, Czechia, France, Portugal, Finland, Denmark and Croatia.

Across three main events and multiple breakout rooms, the following subjects were discussed in a
range of capacities and from the perspectives of various committees.

The EU’s Digital Agenda is at the forefront of both business and government actors’ priorities and
this was seen throughout Virtual Strasbourg. Topics included the EU’s Digital Future, improving
digital infrastructure, building a digital curriculum, platform regulation, GDPR, cybersecurity and
digital services. The EU is aiming to establish a new gold standard in digital regulations whilst
also realizing the potential of the digital single market. By applying legislation such as the Digital
Markets Act, Digital Services Act and Data Governance Act, the EU hopes to uphold the rights of
consumers whilst enabling the digital and tech industry to develop under the clarity of regulation.

Another key topic of discussion was the EU’s sustainable agenda and how it fits into the global
sustainability strategy. It was suggested that transparency of materials used by green projects
should be encouraged, so that green initiatives are as sustainable as possible. An example of this
being the use of traceability programs, which can work to ensure responsible and resilient supply
chains. Furthermore, it is believed that chemical regulation is not keeping pace with the wider
policy agenda. This is at odds with the handling and recycling of materials and indicates a
requirement for the harmonization of legislation. Addressing issues such as these is vital if the
EU's green transition is to be successful.

Regarding consumer protection, a Sustainable Product Index was suggested as a mechanism to
better inform consumers of the environmental performance of a product. Furthermore, revised
management of fake news, mechanisms for users to flag harmful content and platforms to work
through codes of conduct were also discussed.

The Transport Committee also plays a major role in the EU's green transition with the Smart and
Sustainable Mobility Strategy. Despite the benefits of green hydrogen, it is expected that it will
be a niche technology in cars due to their already widespread electrification. However, hydrogen
will play an important role in other modes of transport, especially heavier vehicles, and may
become a more viable option as the industry evolves. These technologies will play an important
role in the decarbonization of the whole sector.

The role and actions of the ECON Committee were also discussed. The committee has used the
Recovery and Resilience Facility, the escape clause, and the pausing of fiscal rules, to mitigate
the risk of Covid and to aid the recovery of member states. Despite this, we can expect countries
to emerge from the pandemic with high deficits, large amounts of debt and weak economies. In
some cases, debt could be greater than 100% of GDP. This will undoubtedly re-align member
states concerns and tax may fall into focus. Matters such as reducing the VAT gap is high on the
agenda of the ECON Committee, as well as competition policy, decarbonising the economy and
the digital markets act.

Whilst discussing the UK-EU relationship, the topics of the Northern Ireland Protocol, free
movement, civil justice and access to courts for consumers, UK access to the Lugano convention,
and data sharing were covered. It was stated that the TCA is fair and balanced and that it sets an
institutional framework that can account for divergences.

VIRTUAL STRASBOURG 2021

SPEAKERS:

·Axel Voss - Rapporteur on GDPR, copyright in DSM, ePrivacy
Regulation, civil liability regime, Member of JURI and AIDA (DE, EPP)
·Luděk Niedermayer - Vice-Chair of the ECON Committee (CZ, EPP)
·Markus Ferber - Vice-Chair of FISC, member of ECON (DE, EPP)
·David McAllister - Chair of AFET and UKCG (DE, EPP)
·Tomislav Sokol - Member of IMCO (HR, EPP)

·Alex Agius-Saliba - Rapporteur on DSA, right to disconnect, Member
of IMCO (MT, S&D)
·Ibán Garcia Del Blanco - Rapporteur on the framework of ethical
aspects of artificial intelligence, robotics and related technologies,
Vice-Chair of JURI and Member of AIDA (ES, S&D)
·Carlos Zorrinho - Member of ITRE (PT, S&D)

·Damian Boeselager - Shadow rapporteur on European Strategy for
Data (DE, Greens/EFA)
·Marcel Kolaja - Vice-President of the EP responsible for Informatics
and Telecommunications, Vice-Chair WG on ICT Innovation Strategy
(CZ, Greens/EFA)
·Ville Niinistö - Shadow rapporteur on a comprehensive European
approach to energy storage, Member of ENVI and ITRE (FI, Greens/EFA)
·Patrick Breyer - Shadow rapporteur on shaping the digital future of
Europe (DE, Greens/EFA)
·Gwendoline Delbos-Corfield - Vice-Chair of Green/EFA Group,
Substitute member of UKCG (FR, Green/EFA)

·Sandro Gozi - Member of IMCO (FR, RE)
·Jan-Christoph Oetjen - Vice-Chair of TRAN (DE, RE)
·Morten Petersen - Vice-Chair of ITRE, Member of UKCG (DK, RE)

·Sylvia Limmer - Shadow rapporteur on New Circular Economy Action
Plan, Member of ENVI (DE, ID)

·Emmanuel Maurel - Member of INTA and AIDA (FR, GUE/NGL)

VIRTUAL STRASBOURG 2021

THE EU DIGITAL AGENDA - 9TH MARCH

 On Tuesday the 9th of March, the Chamber was pleased to welcome MEPs Alex
Aguius Saliba, Damian Boeselager, Ibán García, Marcel Kolaja, and Axel Voss to
discuss the vital topic of the EU Digital Agenda. This session was moderated by
Elizabeth Crossick, Head of Gov Relations at RELX, and kindly sponsored by Liberty
Global.

One of the key priorities mentioned by the panel was the European joint effort in
developing a strategic focus for investing in the EU’s Digital Future. Improving the
digital infrastructure in the European Union was seen as a top priority; whilst there
was some debate on how fast the EU is currently acting on digital matters. There was
also discussion on how to harmonise regulations on digital matters across the EU.

Improving basic digital skills for European citizens was mentioned as a big issue – it
was made clear that people should not be left behind due to lack of skills. The need
for building a digital curriculum across Europe is vital. Furthermore, the funding for
member states to promote digital skills is important to ensure that a huge portion of
society is not left behind by the digitalisation of Europe. Digitalisation is becoming a
key means of bringing people and business together, as well as a means of spreading
information.

It was mentioned that the EU should be more ambitious and open to legislate for the
digital reality. With the huge boom we see with AI it’s a historic moment not only for
Europe but globally, and we need to make sure that the rules for the upcoming age
are fair, and that we can have European competition is the upcoming world. What is
illegal offline should be illegal online – but tools should be put in place to put law
enforcement in a position where this is possible.

The need to improve safety, as well as the concerns of civil society in general, were
raised during the discussion. The panel expressed their desire to ensure that benefits
made by reforms in this area were felt across the EU. The current legal framework
was created way before a number of these platforms which have become public
utilities were created. These platforms have changed the very functioning of our
global economy and created new challenges that need to be addressed.
Subsequently, the DSA and DMA should guarantee a better, fairer digital
environment.

Regarding GDPR in the digital agenda, there was broad consensus that the EU should
be working towards finding frameworks that have protection built in to enable
individuals to have power over their own data.
Many other topics were discussed over the period of the Q&A, such as access to digital services
for SMEs, data protection, and cybersecurity. Innovations such as artificial intelligence were also
discussed.

VIRTUAL STRASBOURG 2021

THE EUROPEAN GREEN DEAL - 9TH MARCH
During our session on The European Green Deal we heard from MEPs Markus Ferber, Ville Niinistö, Sylvia
Limmer, and from our sponsor, the Cobalt Institute, on the efforts of the European Union to make our
economy more sustainable, and how the presented challenges can be converted into opportunities.

To give a backdrop to this discussion, it is important to note that in recent years there has been a huge
shift in how investors are moving money to green sectors, which has created a totally different market
setting and showing that making your company environmentally friendly is already a economically viable
option. More than that, the costs of non-action are going to be a lot more expensive in the years to come
with the majority of the European Parliament pushing for more green measures.

Additionally, this green movement is global, as it needs to be in order to save the planet, and some
examples of what countries around the world are doing include:
    The UK’s ambitious climate goals, it will be interesting to see how Brexit affects cooperation, but
    hopefully there will be continued focus in this area and the UK will remain a close ally to the EU.
    Globally, China is on the path to become climate neutral by 2060, and this is reflected in the Chinese
    economy with more investments being seen into green technology. However, whilst they are getting
    greener they are also still currently increasing the amount they pollute each year, and so the
    question for the moment is how long will they be going down these two different tracks?
    For the United States, the Biden presidency promises green investments and has so far been positive
    for the environment.

It is then important to assess where Europe’s goals fit into this whole picture. The Green Deal is one of
the main issues for this legislative period, and requires substantial investment if we want to achieve it. It
is safe to asses that the investment gap, which was already in the ballpark of 260 billion euros before the
pandemic, has grown since the pandemic and, conversely, budgets have tightened. Up until now
environmental protection and green policies have only been possible because it has been financed by a
flourishing economy, and so in order for the continued support of green policies to be possible, member
states will have to substantially shift and reprioritise their existing budgets to support sustainable long-
term solutions to our environmental problems.

The other side of the coin is private money, and in recent years there has been an increased demand for
sustainable investments. However, there is also a lack of clarity of what constitutes green investments,
and this information problem is a good case for regulatory action, and one that the European
Commission is working on, sifting through thousands of replies to their public consultation on taxonomy,
so that they can empower investors by supplying them with the right information to make an informed
decision.

Information also needs to be transparent on the materials that green projects use. Cobalt, for instance, is
a critical raw material for a variety of uses, particularly for used in batteries. Today around 55% of global
cobalt consumption is used in lithium-ion batteries and this is expected to grow. It is therefore a vital
part of our sustainable transition towards electric vehicles. However, 60-65% of cobalt supply comes
from the Democratic Republic of Congo, and so we need to ensure the responsible and resilient supply
chain with traceability programmes so that each component of green initiatives such as electric cars are
as sustainable as possible.

Furthermore, Europe has a lot of ambition when it comes to green policies, however chemical regulation
is not necessarily keeping pace with the decisions which are being made and reflecting the wider policy
agenda. This creates limitation in the handling and recycling of materials, meaning harmonization of
legislation is therefore vital in order to achieve the goals we have set ourselves, to do otherwise risks the
green transition in Europe.

One way to achieve this is through good impact assessments in proposals, making sure they are in line
with policies across the EU, and that environmental regulations are strict but applicable to make sure
that the rules can be followed.

The future is already here, it’s just a question of how quickly we finalise this transition.

VIRTUAL STRASBOURG 2021

THE FUTURE OF EU AND UK RELATIONS - 10TH MARCH

On Wednesday the 10th of March, BritCham was delighted to welcome a host of MEP’s to
discuss UK-EU relations. With Matt Hinde from National Grid as Chair, we had the pleasure
of hearing MEPs David McAllister, Patrick Breyer, Gwendoline Delbos-Corfield, Emmanuel
Maurel, Morten Petersen, Tomislav Sokol and Jeremy Lilley from our sponsor RELX speak
about the TCA and future relations.

The TCA served to demonstrate that the UK and EU have many shared values, whilst there
is still a clear desire for the UK to show independence and sovereignty. One area of note,
where we could see divergence, is the digital and tech industry. Although both sides of the
channel share some priorities, finding out whether there will be notable differences in
digital and tech regulation is an important question for many organisations. From some
perspectives, legislation will need to balance managing risk, whilst still encouraging the
development of the digital economy.

Whilst acknowledging that the TCA was a positive outcome of the Brexit negotiations, it
was said that frictionless trade cannot be expected as, however good an agreement is, it
will not provide access to the single market. It is believed that the TCA is fair and
balanced, and that it sets an institutional framework to account for divergences. Moreover,
the fishing industry acts as evidence that it is a living document, and that therefore the
UK-EU relationship will develop and evolve over years to come.

Both sides should ensure that a regime of mistrust is avoided. The EU believes there is a
joint challenge in monitoring and scrutinizing the deal to ensure a level playing field and
to protect the internal market.

Despite sharing similar objectives regarding the digital and tech industry, one area where
we are seeing divergence is in data exchanges. The Civil Liberties committee is concerned
about data protection in the UK, particularly due to the UK’s intelligence legislation.
Moreover, since the UK received 3rd country status there is now an adequacy requirement.
The Civil Liberties committee feels strongly about its position on this topic and the EU
wants to establish a new gold standard in digital regulations via the Digital Markets Act.
This aims to bring the information age better in line with EU values and rights.

Another important area of focus is the Northern Ireland Protocol. This area requires
consideration as the entirety of Northern Ireland’s community needs to feel that their
needs are addressed. The EU is yet to develop a position on what needs to be adjusted
down the line to preserve the longevity of the protocol, however they are committed to
the Good Friday Agreement and acknowledge that the current protocol may not be
sufficient.

Lastly, the subject of free movement and civil justice was raised with free movement being
described as the grease that makes the gears of trade turn. This serves to highlight the
importance of movement for both sides as it impacts businesses, citizens, employees, and
consumers. Moreover, access to courts for consumers will also be imperative. UK access to
the Lugano convention is seen as an easy and swift way to grant such rights.

VIRTUAL STRASBOURG 2021

ECON COMMITTEE PRIORITIES - 9TH MARCH
On Tuesday the 9th of March we had the pleasure of welcoming Luděk Niedermayer, Vice Chair of the ECON
Committee, to speak at Virtual Strasbourg. Moderated by Carmen Bell from Portland Communications, this event
provided insight into the areas of focus for the ECON Committee, as well as what we can expect from Covid
recovery policies.
Since the start of the pandemic the ECON committee has worked on mitigating the risk of Covid and on aiding EU
states recovery. It has become a central objective to help each member state via financial support and working to
limit the impact that Covid-19 has on the economy. To achieve this, various initiatives have been implemented.
Examples of these are the Recovery and Resilience Facility, the escape clause, and the pausing of fiscal rules.
It is believed that anticyclical economic policies, such as the Recovery and Resilience Facility are a key aspect of
EU policy, and that we can expect the escape clause to continue until 2023. However, it is important to consider
how the economy will look going forward, and thus, what form policy should take. One notable consideration
should be what form the fiscal rules should take when they are reinstated in 2022. Currently countries are
preoccupied handling the healthcare crises of the pandemic. However, as this crisis ebbs the economic impact of
the pandemic will come into focus.
We can expect countries to emerge from the pandemic with high deficits, large amounts of debt and weak
economies. In some cases, debt could be greater than 100% of GDP. This will undoubtedly re-align member states
concerns and tax may fall into focus. Reducing the VAT gap is high on the agenda of the ECON Committee, as
improving the efficiency of tax collection is a preferable approach over simply increasing tax. Action such as this
would require considerable cooperation between member states and the European Parliaments ability to achieve
this should not be overestimated. However, as the economic crisis becomes clear, economic pressure may create
an opportunity to make progress with tax cooperation as a reduced VAT gap will only be more important.
In years to come the climate agenda will require work across all areas, including in the ECON Committee as
decarbonisation creates both costs and possibility for profits. Moreover, subjects such as competition policy, the
digital market act, and more will be discussed extensively by the committee.

 TRAN COMMITTEE PRIORITIES - 9TH MARCH
 In our session on TRAN Committee Priorities, kindly sponsored by Cambre Associates, we heard from Vice-Chair of
 the TRAN Committee, Jan-Christoph Oetjen, who gave an in-depth overview of the different topics currently being
 discussed in the TRAN Committee.

 The Smart and Sustainable Mobility Strategy, which has become Resilient since the pandemic, will guide the way
 through the different topics in the transport area. At the moment we are in a situation which is about the survival
 of constructors, airlines, and our system of connectivity that we have in Europe. It is therefore important to work
 together with and talk regularly to the industry and other institutions to find productive solutions.

 We need to ensure that these solutions are balanced, not favouring one sector of society over another, for
 instance, hydrogen will be a niche in cars because the electrification of cars is so developed, but we will need
 hydrogen in other modes of transport, especially heavier vehicles. The European Parliament was flexible
 concerning state aid and must remain to be flexible. This is also true for tourism – it’s about helping the sector in
 order to provide stability. Sadly, not all businesses will survive, and we will have a different sector in one year
 from what we have today, but we want to do what we can to prevent the loss of European players that are
 normally in good shape and thus prevent them from being replaced by players from outside Europe. As such, it’s a
 question of solidarity within the EU.

 Regarding the Sustainable part of the strategy, low carbon fuels are part of the path towards decarbonisation of
 the whole sector, however there is still a lot of debate surrounding this area. For instance, one question that has
 been brought up relates to whether there is a role for non-green hydrogen, or whether we should solely be
 focused on the most sustainable green hydrogen. The business sector has to look what is financially viable, and
 the parliament has to look at the business cases that are developing and be open to all solutions in order to get
 closer to the zero emissions target. Subsequently, whilst in ideal world it would just be green hydrogen used, in
 the meantime we could use other types, as long as this is short-term.

 We also need to think about how we deal with the international dimension, especially in our interconnected
 world. What we have to provide is a solution that creates a level playing field. This is something that is very
 important and supported by a large majority of the Parliament who want to avoid a distortion of competition
 when other countries do not have the same rules and regulations as the EU.

 Overall, throughout the years there have been many changes: in the areas of discussion, in the industry, in
 technology etc. Clearly, we cannot predict what will happen in the future. So what we should do is give an
 opportunity to the sector, to engineers, to develop fantastic things and bring us solutions. If they are able to do
 so, that is great and they should be able to earn money with it, and if they don’t we will have other solutions.

VIRTUAL STRASBOURG 2021

ITRE COMMITTEE PRIORITIES - 9TH MARCH
On Tuesday March 9th we were delighted to welcome MEP Carlos Zorrinho (PT, S&D), member of the ITRE
Committee (Industry, Research and Energy) to discuss the ITRE Committee priorities. There was a wide-ranging
discussion, which highlighted a focus on industry transformation and the Energy, Mobility and Digital sectors.

The ITRE Committee has a wide, cross-sectoral interest, and this can make managing it quite complex. For greater
efficiency, it must be clearly aligned with the administrative functionality. One way to do this is to implement
well the existing legislation, as is needed in areas such as green digitalisation.
Access to data is vital across Europe and it is important to develop a European business model in data access. It is
a priority to invest strongly in physical connectivity necessary to support data access for citizens and there is
consideration being given to creating a European cloud. This would give the potential for European-wide access
to data.

A further aspect of the digital agenda relates to the Digital Charter and plan for a Digital Europe. There are
significant investments in this area, currently it is being funded with 9.9 billion euros. This plan lays out 5
priorities:
    HPC and data
    AI
    Cybersecurity and trust
    Advanced digital skills
    Deployment of digital capacities and interoperability

Another area that the ITRE Committee has focused on is the energy systems and infrastructure requirements with
the development of the energy single market. The hydrogen strategy, both green and blue, will play a big part in
this so as to achieve the goals set out in The European Green Deal to become climate neutral by 2050.

The EU remains positive that these plans will be able to go ahead despite the Covid-19 pandemic. However, the
pandemic has brought up many challenges. For instance, it has exposed just how vital good access to WiFi is, with
so many citizens across Europe being advised to stay at home if they can. Subsequently, it is now an important
element of social equality, particularly in the impact seen on educational access for children. In order to mitigate
this problem, ITRE is looking at a European-wide WiFi system.
It also wants to support start-ups and the development of SME’s, and for this strong financial markets are a
priority.

We would like to extend our thanks to Tom Murray, Director of EUK Consulting for chairing this insightful
meeting.

IMCO COMMITTEE PRIORITIES - 9TH MARCH
In the Breakout Room two of Britcham’s Virtual Strasbourg on Priorities of IMCO Committee, we had the honour to
engage in an open debate with MEP Sandro Gozi, member of the IMCO committee. The discussion focused on
IMCO’s intention to drive growth within the Single Market in Services and turn the Single Market into a
sustainable market for consumers and businesses.

Further conversation touched upon post-Covid recovery and how the global pandemic has influenced the long-
term priorities of IMCO. It was highlighted that the Single Market has demonstrated resilience throughout the
pandemic in avoiding the suspension of the free circulation of products despite closed borders. However, long-
term implications of the pandemic revealed that ecological and digital transformations are needed to capture the
potential of data cross-border and accross-sectors. In addition, a call for strengthened B2C relationships and
consumers relationships with digital platforms was raised. With regards to consumer protection issues, a
Sustainable Product Index was mentioned, as a mechanism to better inform consumers of the environmental
performance of a product.

Additionally, talk surrounding the Digital Services Act (DSA) along with the Data Governance Act (DGA)
emphasized IMCO’s desire to unleash the potential of the Digital Single Market, while evaluating its readiness to
meet the digital targets in 2030. Some amendments to the act were suggested, including revised management of
fake news, mechanisms for users to flag harmful content and platforms to work through codes of conduct. To
conclude the discussion, geo-political opportunities were touched upon, including the development of contractual
and parallel policies and regulations alongside the new Biden administration, to support the EU’s digital agenda.
We also want to mention and thank Aled Williams, Managing Director at FTI Consulting, for chairing this lively
discussion.

ONCE AGAIN, THANK YOU TO ALL THOSE WHO ATTENDED,
       OUR SPEAKERS, AND OUR SPONSORS:

 WE HOPE TO SEE YOU AGAIN AT OUR NEXT STRASBOURG