Negotiations in the EU Council working group on the Chips Act regulation are progressing well, according to the latest information and the revised version by the Czech Presidency of the EU Council, obtained by EUROPE on Friday 14 October.
According to our information, the Member States have discussed at length the scope of the regulation, in particular whether it should focus mainly on advanced semiconductors (eventually up to 2 nanometres) or whether it should be extended to traditional semiconductors, which are also in short supply, especially in the automotive sector.
According to the second compromise text of 13 October, the Czech Presidency emphasises innovation, but with positive spill-over effects for the whole of Europe. This approach is reminiscent of the debate in the European Parliament (see EUROPE 13042/13).
The other main point of discussion was the third pillar dedicated to crisis monitoring and response. Here, unsurprisingly, the Member States seem to be moving towards a greater role for themselves in the process, but also for business. Safeguards to protect the market have also been introduced.
According to a diplomatic source, the nature of negotiations on the third pillar could have an impact on the emergency instrument for the single market, which was recently presented by the European Commission (see EUROPE 13024/1).
Finally, another point that has been repeatedly discussed and is still being strongly debated by the Member States is the European Chips Infrastructure Consortium (ECIC), whose primary role is to accelerate the implementation of the actions set out as part of the Chips for Europe Initiative. Here, a large number of Member States, which could potentially constitute a blocking minority, are reportedly not in favour of this consortium, fearing that it would generate too much red tape.
It should be noted that the budgetary issue has so far remained outside of the legislative work in the Council, left by the Czech Presidency to the next incoming Swedish Presidency in early 2023.
The budget (€3.3 billion) will undoubtedly be a delicate point of discussion among the delegations, particularly as regards the way it is financed, partly from the Horizon Europe framework programme and partly from the Digital Europe programme.
As reported (see EUROPE 13042/13), the Czech Presidency of the EU Council hopes to consult deputy ambassadors at a meeting of the Committee of Permanent Representatives I (Coreper I) in early November and then return to a working group to refine the text, with a view to approval at a Coreper meeting in mid-November, according to several sources. A general approach is expected by the December Competitiveness Council.
To view the Presidency’s second compromise: https://aeur.eu/f/3mb (Original version in French by Pascal Hansens)