In today’s edition, we first dive into the open challenges for the next Belgian Presidency and then analyse key points of the Belgian Presidency Programme.

Enjoy, and Merry Christmas!

The Belgian Presidency, explained

From 1 January to 30 June 2024, Belgium will hold the Presidency of the Council of the European Union. As President of the Council, Belgium will lead the European agenda and promote cooperation among the Member States.

The agenda of the Belgian Presidency emphasises key priorities, with a particular focus on driving a robust, resilient, and inclusive transition towards both green and digital initiatives. This includes the completion of legislative packages associated with these transitions. While the Spanish Presidency made significant strides by successfully brokering provisional inter-institutional agreements on critical matters such as the Artificial Intelligence (AI) Act, the European Digital Identity Framework (eIDAS), and the new Pact on Migration and Asylum, there are still numerous unresolved issues awaiting attention.

The Belgian Presidency faces the task of addressing and finalising pending legislation on these matters before the looming deadline in mid-February 2024: the European Parliament has been clear about its intent to conclude all ongoing inter-institutional negotiations (trilogues) by mid-February 2024 at the latest. After this deadline, there would need to be more time to translate the adopted texts into all EU languages, and it would be too tricky to officially adopt them before the EU election set for 6 to 9 June 2024.

Therefore, Belgium’s presidency will likely be split into two parts. Firstly, a rush from January to February to close the leftover files from the Spanish Presidency, and secondly, supporting the adoption of the Strategic Agenda 2024-2029 while preparing discussions on the future of the European Union in the second half of the presidency.

Legislative files to conclude

First, let’s dive into some of the main legislative challenges the Belgian presidency will address during the first months 2024.

Two challenging health-related issues still need to be solved: the European Health Data Space (EHDS) and the revision of EU pharmaceutical legislation. The initial interinstitutional negotiation for EHDS occurred on December 14, with the Belgians aspiring to secure an agreement in the coming months, well before the 2025 launch target.

Concerning the revision of EU pharmaceutical legislation, the Council’s initial focus is on addressing medicine shortages and incentives, with the latter being particularly divisive.

The Belgian presidency also holds responsibility for addressing the memo on non-communicable diseases, evaluating Europe’s Beating Cancer Plan from 2021, and reviewing two Council recommendations—one on vaccine-preventable cancers and another on smoke-free environments. Ongoing efforts involve enhancing the health emergency framework, including evaluating tools, procedures, financial resources, response strategies, and intelligence frameworks. Expanding the EU’s capacity for large-scale clinical trials is also under consideration.

Finally, the critical issue of antimicrobial resistance (AMR) remains on the agenda, with the Belgian presidency aiming to conduct a stocktaking exercise on implementing governance and European governance on AMR. Policy measures to optimise antibiotic use and stimulate the development of new antibiotics will be discussed in connection with the revision of pharmaceutical legislation.

Regarding the digital landscape, the following legislative matters stand a real chance of concluding before the impending deadline:

The Product Liability Directive (PLD) aims to modernise the existing directive from 1985, aligning it with the digital era, circular economy, and global value chains. This update ensures consumer compensation for defective products, even those produced outside the EU. While the second trilogy scheduled in December was successful, unresolved issues may transfer to the Belgian Presidency, presenting a favourable environment for closing a deal.

The Right to Repair Directive focuses on facilitating and reducing the cost of product repairs. Inter-institutional negotiations commenced on December 7, primarily hinging on disagreements over the directive’s scope. The Parliament advocates for broader coverage, while Member States favour limiting it to products falling under EU Ecodesign rules. Recognising the directive’s significance, co-legislators express a shared intention to conclude negotiations before the EU elections.

VAT in the Digital Age (ViDA) comprises measures introduced by the European Commission in December 2022 to modernise the European VAT system for the digital economy. Member States’ alignment on the ViDA proposal might be delayed to Q1 of 2024, attributed to discrepancies in national positions on digital reporting requirements and the mandatory Import One Stop Shop. However, reaching an agreement under the Belgian Presidency remains probable.

The Packaging and Packaging Waste Regulation (PPWR) saw a final compromise reached by the Spanish Presidency on December 18. The general approach will serve as the Council’s mandate for negotiations with the European Parliament on the final shape of the legislation. Therefore, there is a reasonable probability for the file to be concluded before the elections.

Concerning payment-related files, the Payment Services Regulation (PSR) and the Digital Euro are anticipated to be finalised in the next mandate. While progress has been made on some sustainability-related files, others, like the Green Claims Directive or the Waste Framework Directive, remain open and are likely to conclude after the EU elections.

Given the tight schedule, numerous pending files may be transferred to the Member State assuming the Presidency in the second half of the year, namely Hungary. Examples include revising the Alternative Dispute Resolution framework and the General Data Protection Regulation (GDPR) Enforcement law and harmonising procedural rules in cross-border cases.

Security and defence

Regarding protecting individuals and borders, as outlined in the priorities of the Belgian Presidency, a key emphasis will be placed on enhancing the European Defence Technological and Industrial Base (EDTIB).

In security and defence, the Presidency will concentrate on implementing the Strategic Compass and advancing the EU’s Rapid Deployment Capacity to achieve full operational status by 2025. Ensuring the adequacy of command and control structures is crucial in this context. Additionally, the objective is to enhance capabilities and bolster resilience across various domains, including cybersecurity, space, and military mobility. Furthermore, Belgium aims to strengthen collaboration with like-minded partners, particularly NATO, based on the principles established in the EU-NATO 3rd Joint Declaration. It is noteworthy that supporting Ukraine remains a vital and central mission for the Presidency. Top of Form

Environmental and energy policy

Belgian Prime Minister Alexander De Croo has been quoted expressing the widely accepted need to “radically reduce” emissions. Still, he cautions that introducing elements like nature restoration, biodiversity, or chemical restrictions could place that priority “under pressure.”

Nevertheless, the EU Presidency programme under Belgium pledges to continue efforts on various EU Green Deal initiatives that extend beyond climate change. It aims to ensure that all policies are formulated and implemented in alignment with environmental and climate objectives.

As mentioned before, the Belgian Presidency, as part of its agenda, expresses the intent to “advance” negotiations with the European Parliament on the Packaging and Packaging Waste Regulation (PPWR), the Ambient Air Quality Directive (AAQD), and the Urban Wastewater Treatment Directive (UWWTD). Additionally, it commits to “continuing work” on initiatives such as the Green Claims Directive, the End-of-life Vehicles Regulation, and the Waste Framework Directive, which targets the reduction of food and textile waste.

The presidency emphasises concerted efforts to progress negotiations on the proposed Soil Monitoring Law and implementing the European Commission’s Chemicals Strategy for Sustainability. This involves discussions on reducing pollution from microplastics and PFAS, a family of harmful “forever chemicals” that accumulate in the environment and living organisms.

Belgium also aims to sustain discussions on the controversial proposal to deregulate genetically modified plant strains developed using ‘new genomic techniques’ (NGTs) and the proposed Sustainable Use of Pesticides Regulation (SUR), despite suffering an outright rejection by the European Parliament.

The environmental policy programme anticipates explicit agreement between the Council and Parliament only on the proposed Carbon Removal Certification Framework (CRCF) and updated CO2 emissions standards for heavy vehicles like lorries and buses.

On the energy policy front, Belgium aims to adopt Council conclusions on cross-border onshore and offshore renewable energy infrastructure. Collaboration with the European Commission on its ‘hydrogen bank’ plans and a potential hydrogen import strategy is also on the agenda. The Belgian government plans to host a ‘renovation week’ to further EU objectives of reducing energy wastage in poorly insulated and inefficient homes.

Economic Affairs

A compromise negotiated by Belgium will also be necessary to revise the EU’s multiannual financial framework, commonly referred to as its long-term budget.

In the preceding week, EU leaders disagreed on the budget increase proposed by the European Commission, deferring the decision to an extraordinary summit scheduled for February 1.

The primary challenge in the review revolves around the European Commission’s plea for a budget increase in the upcoming years, given the extraordinary circumstances the European agenda has faced since 2021, including the pandemic and the conflict in Ukraine. The latter competition poses a significant obstacle to reaching an agreement, as an additional 50 billion euros of aid is earmarked for Ukraine, necessitating a downward revision of key EU priorities in policies related to ecological transition, digital transformation, or the new Common Agricultural Policy (CAP).

As Belgium takes the helm, the presidency’s success hinges on adeptly navigating these intricate policy landscapes, finding compromises, and aligning EU priorities with the overarching goal of a resilient and sustainable European future.