The Competitiveness Council at the end of September will focus on two major themes dear to the heart of the Austrian Presidency of the Council of the EU, namely: artificial intelligence and the Horizon Europe framework programme.
Therefore, the potential of artificial intelligence for European competitiveness is once again on the agenda of the European ministers for industry on 27 September. It should be recalled that an informal discussion took place for the very first time in July in Vienna (see EUROPE 12063) during which the EU27 attempted to provide an initial outline of the European priorities on this issue. On this occasion, they will continue the reflection during a public debate.
The discussion will draw from a working paper prepared by the Austrian Presidency following the informal meeting of the Competitiveness Council on 16 July (see EUROPE 12063). This paper identifies three priorities, namely: - (1) enhancing the innovation capacity of EU industry; - (2) using the potential contained in the transition to digitalisation and AI; - and (3) digital transformation and skills.
This document identifies a range of requirements in each of these themes and questions ministers about the need to outline a hierarchy for them or add further requirements to the list. One of the ideas in the paper includes the suggestion of increasing public and private investment as well as support for public-private partnerships (PPP). It also suggests going beyond the initiatives on data currently being examined and perhaps “find a way for US Internet companies that account for more than 30% of market share to provide data to European companies for automatic learning purposes".
The public debate is in response to the appeal launched by several member states, including the trio of presidencies (Estonia, Bulgaria and Austria) in favour of a new EU industrial strategy. The results could be made official in the formal conclusions or a written contribution from the Council and be used as a list of tasks for the next European Commission.
It should be noted that in the area of artificial intelligence, the European Commission confirmed on 26 September that it did indeed intend to present “a co-ordinated action plan on artificial intelligence" this December. The aim would be to identify, together with the member states, synergies with their national strategies for areas where they would be investing together. It would also involve encouraging the member states to make concrete commitments in this connection.
Future cohesion policy and next European budget
The ministers for industry will also be dealing with a number of other major subjects. The first day will begin with the only point in the debate that will not be public, namely, the competitiveness “check-up”, a practice that was made into a ritual under the Luxembourg Presidency of the Council of the EU in 2015. The discussion with the European Commission will this time focus on regional convergence through the perspective of productivity growth and competitiveness. One of the issues will focus on sharpening regional inequalities within the member states themselves.
During lunch, ministers will have a discussion with the Commissioner for the Budget, Günther Oettinger, about the future multiannual financial framework in the perspective of competitiveness. One senior diplomatic source informed us that this will not involve a question of budgetary volumes at all but will be more of a discussion on the modalities for the many European Commission proposals for the next budgetary cycle.
At the end of this first day, the member states will permanently adopt, without debate, the regulation on the single digital portal (see EUROPE 12026, 12095) for its publication in the EU Official Journal.
Horizon Europe and the difficult question of the legal basis
On the following day, ministers responsible for research will examine the future Horizon Europe framework programme, in view of laying the ground work for the more political subjects in the hope of obtaining a general approach in November under the Austrian Presidency of the Council of the EU.
The Presidency published a raft of documents targeting the main questions that will be on the ministers' table and which have already been reported on by EUROPE (see EUROPE 12099). It should be recalled that one of the major questions will focus on the new dual legal basis proposed by the Commission for the specific programme. The Commission wants to change the decision-making process to ordinary co-legislative procedure. This development would be opposed by a very large majority of member states - according to one source, 18 member states, with another source saying all of them - in addition to the legal services at the Council being opposed, while the European Parliament would be in favour of it.
The real question is whether they need to resolve the question of the dual legal basis during this meeting or, according to one source, wait for the contents of the text to be definitively decided. According to this latter source, this would to a certain extent involve a kind of a chicken and the egg paradox: the legal basis defines the contents of the text but the objectives of the text and its contents determine the legal basis. This extremely difficult issue was broached during the most recent Committee of Permanent Representatives (Coreper) meeting.
At the Friday afternoon lunch, ministers will meet the two European Parliament rapporteurs, Christian Ehler (EPP, Germany) responsible for the decision relating to the specific programme and Dan Nica (S&D, Romania) on the regulation establishing the Horizon Europe framework programme, to hold informal discussions regarding the European proposals.
The dossier is a priority for the Austrian Presidency of the Council of the EU, which has worked flat-out in preparation for the event by arranging two weekly working party level meetings. (Original version in French by Pascal Hansens and Sophie Petitjean)