The Ministers of the EU Member States responsible for the Internal Market and Industry, meeting on Thursday 25 November in the Competitiveness Council of the EU, will begin the day by tackling two major digital legislation dossiers: the Digital Services Act (DSA) and the Digital Markets Act (DMA) (see EUROPE 12837/2). The afternoon will be devoted to a debate on stimulus packages in relation to competitiveness, including a focus on semiconductors.
For the DMA and the DSA - for which two separate discussions are planned - Member State ministers will be asked to adopt their position (‘general approach).
“It is a surprise that all Member States have joined the compromise, which was not a given”, explained an EU source. “The DMA was simpler”, but issues described as “structural” remained “until October” regarding the DSA, the source also recalled.
“ We reached an agreement in principle in record time despite the very technical files. After the Competitiveness Council of the EU, we will be ready for the negotiations, which will depend much more on the European Parliament than on the EU Council”, added another diplomatic source.
While solutions have been found to the points of divergence concerning the DMA, the situation is different for the DSA. “The DSA is a ‘catch-all’ text”, said one EU source.
“In the Parliament, there seems to be a series of additions to what the text should cover”, a source close to the dossier told EUROPE on 19 November, in the wake of the agreement in principle adopted two days earlier by the Member States’ ambassadors to the EU (see EUROPE 12836/2).
Several issues, such as the precise definition and criteria for defining a company as a gatekeeper, is expected to be addressed. The issue of targeted advertising is also likely to come up for discussion.
A ban on the latter for minors and stricter controls on the use of personal data for commercial purposes were added to the DMA text, adopted on Monday 22 November by MEPs on the European Parliament’s Committee on the Internal Market and Consumer Protection (IMCO), following amendments backed by the S&D and Greens/EFA groups (see EUROPE 12838/6).
Semiconductors in the spotlight
On Thursday afternoon, the ministers responsible for industrial policy are invited to hold a policy debate on the implementation of the European Recovery Plan in relation to competitiveness. Here, the Slovenian Presidency of the EU Council will look at how the implementation of national recovery plans can benefit industrial ecosystems.
It will also look at potential synergies with the Recovery and Resilience Facility (RRF) and other EU funds, notably to tackle supply shortages in the semiconductor and raw materials sector as well as high energy prices.
According to a diplomatic source, the issue of semiconductors is likely to be a major focus of interventions, in connection with the ‘European Chips Act’ initiative planned by the European Commission next year (see EUROPE 12796/10).
Among other items on the agenda, the Commission will keep Ministers informed about the challenges related to the ‘Fit for 55’ greenhouse gas emission reduction package, the work of the Industrial Forum and the 2021 Annual Report of the SME Envoy Network.
At the request of Sweden, a briefing will be given on an action plan for the services sector. Another briefing will be held, this time at the request of Greece, to strengthen the health and pharmaceutical sector in Europe.
Progress reports will also be presented on the proposal for a Regulation on general product safety and the Regulation on Machinery Products.