January 1st marked the beginning of France’s six-month term as holder of the rotating presidency of the Council of the European Union. The country picks up the baton from Slovenia, which has been in the lead of this institution since July, and begins the trio along with the Czech Republic and Sweden until the first half of 2023.
This will be the thirteenth time since 1959 that the French have held the Presidency. On this occasion, the President of the French Republic, Emmanuel Macron, will be leading the Presidency. His main responsibility will be to organize and chair the meetings, as well as the elaboration of compromises capable of resolving the difficulties in the negotiations with the European Commission and the Parliament. The moto chosen to encompass its mandate has been “Recovery, Strength, Belonging“, as its main objective is to move from a Europe that cooperates within its own borders to a Europe that is powerful into the world, fully sovereign, free in its choices and master of its destiny.
On 19 January, the French President presented to the plenary session of the European Parliament in Strasbourg the priorities of his term of office on the Council. These are structured around three main lines of action: a more sovereign Europe, a new European growth model and a humane Europe.
Recovery and taxation
The Presidency is intended to see to the full deployment of the recovery plans in Member States, ensuring that funds are swiftly disbursed and to organizing the oversight and adoption of the national recovery and resilience plans. They will also promote the work on green budgeting.
It is expected to achieve the introduction of the Carbon Border Adjustment Mechanism and a “mirror clause” in the EU’s international agreements to ensure the coherence of the trade and climate agenda. They will prioritize work on a Corporate Sustainability Reporting Directive (CSRD) together with an ambitious implementation timeline. Additionally, they intend to write into European law the agreement on a “Pillar Two: Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy” reached with the OECD on 8 October 2021.
Competitiveness and digital
The French ambition is to develop a new growth axis, reinventing European industrial policy and modernizing existing rules. A summit of the Heads of State and Government of the EU Member States will be held on March 10 and 11. There, three topics will be discussed: responsiveness to the COVID-19 crisis to make Europe a market for jobs and growth, building competitive sectors with value creation (semiconductors, culture, defense, cloud, cybersecurity, etc.), and developing financial and budgetary rules adapted to the digital and climate transitions. They expect to move discussions on the revision of the General Product Safety Directive and begin work on the proposal for a European Chips Act.
In addition, France wants to make Europe a digital powerhouse: transforming all sectors of the economy, creating new jobs, and supporting “industrial champions”. To this end, they will pursue a strategy of simplifying rules, removing barriers and attracting talent by encouraging the financing of innovation. In this area, Macron highlighted his intention to move forward with the Digital Markets Act (DMA) and the Digital Services Act (DSA).
Energy
The Presidency will continue work on the proposals for the Fit for 55 legislative package in connection with energy. They will start work on the gas package, revising the Regulation on conditions for access to decarbonised gas transmission networks, including hydrogen, and initiate discussions on the proposal for a regulation on methane emissions in the energy sector. Rising energy prices will continue to be discussed in depth by the Council during the French Presidency and Convinced that nuclear energy is vital to decarbonising European industry, the Presidency will hold a ministerial conference on decarbonisation in this respect in early March.
Employment
The French Presidency will commence negotiations with the European Parliament concerning the proposed Directive on adequate minimum wages in the EU and initiate discussions on the proposed Directive on improving the working conditions of people working through digital labour platforms. They also intend to make progress on the Wage Transparency Directive, which particularly addresses the gender pay gap, and to finalize the texts on quotas for women on boards of directors.
When replying to the French president, most political group leaders of the European parliament welcomed the French priorities, but called for more emphasis on other aspects, such as revising the Stability and Growth Pact. Several speakers criticized French willingness to include nuclear energy in the European Commission’s latest proposal on green taxonomy.
This ambitious program foresees certain developments and changes in the European landscape that will meet some of today’s needs.
