Vulcan View: The latest EU developments 20 May – 24 May

Unpacking the EU leadership debate 2024

With less than two weeks until the first Europeans head to the poll, on Tuesday (21 May), Brussels think tank Bruegel and the Financial Times hosted the ‘Economic choices for Europe: EU leadership debate 2024’ to debate the economic policy positions of the main EU parties and their lead candidates.

Those in attendance were as follows: Sandro Gozi (lead candidate for the centrist Renew Europe), Ursula von der Leyen (President of the European Commission and lead candidate for the centre-right European People’s Party), Nicolas Schmit (lead candidate, the centre-left European Socialists) and Anders Vistisen (lead candidate, of the nationalist Identity and Democracy Party).

Over three round focused on the future of the Single Market, Economic Security, and the upcoming negotiations for the 2028 – 2036 EU budget, the conversation took an in-depth look at key economic topics that will shape the lives of Europeans in the years to come.

In round one, all candidates highlighted the importance of the EU’s Single Market. Schmit emphasised the need for stronger industrial policy and a push towards greater innovation and R&D, while von der Leyen highlighted a need for widening and finishing the Capital Markets Union – a key aspect of the recent report by former Italian Prime Minister Enrico Letta. There was backlash from Gozi who claimed the Capital Markets Union is “the biggest EPP failure because you [VDL/EPP] have been in charge for five years.”

In round two, Gozi argued that greater economic security lies in a greater focus in defence and emphasised that, contrary to the past, the EU can no longer depend on the cheap security (US), energy (Russia) or trade (China) with external partners. For the EU budget, predominantly a subject of the so-called eurobubble and national Treasuries, structural spending key topics such as defence, security, competitiveness, infrastructure, the green transition and digitalisation were highlighted as priorities.

Renew Europe MEP Sandro Gozi challenged everyone, including the ID’s Anders Vistisen, when he criticized the current state of the excessive and uncoordinated spending under the EU’s cohesion policy. Vistisen also shared a comment on abolishing the Green Deal to revitalise the EU economy.

Ahead of the elections, von der Leyen’s EPP is leading in the cross-EU polls, ahead of Mr. Schmit’s Socialists and Gozi’s liberals. According to current projections, this centrist alliance would be the only feasible coalition to lead the Parliament – a majority of which von der Leyen will need in July to be re-elected Commission President.

The EU’s Security Union: A look at progress and future directions

The European Commission recently adopted the Seventh Progress Report on the implementation of the EU Security Union Strategy for 2020-2025, offering a comprehensive assessment of the Strategy’s effectiveness four years after its inception. This report is pivotal as it outlines the EU’s strategic accomplishments and enhancements in security, detailing a significant advancement in areas crucial for maintaining both physical and digital safety across the continent.

The Security Union Strategy was initiated in 2020 with the aim to bolster the EU’s defence against both conventional and emerging threats. Since then, the Commission has focused on safeguarding the EU’s infrastructure, combatting terrorism and radicalisation, tackling organised crime, enhancing law enforcement and judicial cooperation, and fostering international partnerships. The Strategy has not only met its initial commitments but also adapted to new security challenges, thereby solidifying the EU’s capacities to protect its citizens.

In the realm of infrastructure security, with the rise in hybrid threats targeting essential infrastructure, the EU has enacted significant directives, such as the Directive on the Resilience of Critical Entities and the Directive on Network and Information Security (NIS II), effective from January 2023. These directives extend protections across vital sectors such as energy, transport, and health, fortifying both physical and digital frameworks against disruptions.

The Commission has also made significant strides in cybersecurity through the introduction of the Cyber Resilience Act and the Cyber Solidarity Act. These initiatives ensure that digital products are secure by design and enhance the EU’s capabilities to counteract large-scale cyber incidents through improved detection and response mechanisms.

In addressing terrorism, robust efforts have been made, including the implementation of the EU Agenda on Counter-Terrorism. Measures such as the Terrorist Content Online Regulation require quick removal of harmful content, while legislative efforts have curtailed access to explosive materials and fortified public spaces against attacks.

The EU has also escalated its fight against organized crime, with strategies like the EU Strategy to tackle organised crime 2021-2025 and related action plans. The establishment of the EU Ports Alliance and the strengthening of the future EU Drugs Agency are key initiatives that secure EU borders and tackle crime effectively.

Moreover, the EU has enhanced legal frameworks for police cooperation, including the adoption of advanced information sharing protocols and tools to facilitate better cross-border collaboration. These efforts are crucial for effective action against serious crimes and terrorism.

Amid global challenges such as Russia’s aggression in Ukraine and tensions in the Middle East, the EU has heightened its internal security measures and international cooperation. Initiatives like the counter-terrorism financial investigators network demonstrate the EU’s commitment to a collaborative approach to security.

The ongoing collaboration among EU agencies like Europol, Eurojust, and ENISA underscores the Union’s commitment to a comprehensive security strategy. As the EU moves forward, the foundations laid by the Security Union Strategy promise a resilient and secure environment for all Europeans, adapting continually to the dynamic landscape of global threats.

Government seeks to navigate optics of leaked Housing Commission report

Following leaked elements of the Housing Commission report surfacing earlier this week, the government released the report in full yesterday evening. The report was received by Minister for Housing Darragh O’Brien on 8 May and is based on over two years of deliberation by the commission and includes 83 recommendations together with hundreds of suggested actions. A preliminary review from the Department of Housing regarding the commission’s recommendations suggests that 65 of the 83 total recommendations are already advanced or at varying stages of implementation, with some more advanced than others. It was clarified by the department that consideration will be given to recommendations remaining to be implemented.

A notable rejection from Minister O’Brien regarding the report’s recommendations is that of establishing a ‘Housing Delivery Oversight Executive’. The proposed oversight group would act as a decision-making body responsible for coordinating the delivery of housing and to identify and address blockages to housing delivery whilst overseeing and stimulating investment in public utilities on land zoned for housing. In his rejection of this recommendation within the commission’s report, Minister O’Brien highlighted that a new oversight body would add “another layer” of bureaucracy to new homebuilding in Ireland.

Within the report, the commission revealed its view that the government has not resolved the “fundamentally systemic”failures in the State’s housing system. Within the findings of the report, the Housing Commission estimated an underlying housing deficit of a maximum of 256,000 homes. An independent expert body, the Housing Commission was established as part of the Programme for Government to examine housing issues, such as supply.

Since 2022, the commission has been examining the government’s response to counteracting the housing crisis. The fact that the report was leaked meant that the government could not control the narrative of the commission’s findings and enabled the opposition the impetus to paint a picture of the government deliberately withholding expert opinion critiquing their housing policies.

In its report, the commission highlighted a government approach to housing policy that entails “ineffective decision making and reactive policy making where risk aversion dominates”. This leaked report comes at an awkward time for the government, with local and European elections mere weeks away.

Speaking in the Dáil, in reaction to the leaked report, Sinn Féin’s housing spokesperson Eoin Ó Broin said that it was “virtually impossible” for Minister O’Brien to ignore the warnings of the Housing Commission in the way that he ignored the advice of the opposition.

When releasing the full report yesterday evening, Minister O’Brien said, “As would be expected, not everything in the reports released today is accepted or agreed and a full analysis will be required before actions are taken. Having said that, 65 of the 83 actions, or 78% of the recommendations are already implemented, underway or partially underway.”

It is noteworthy to consider that housing has not been as prominent on the political agenda in recent months, with immigration being the dominant policy that has influenced the Irish electorate. This leaked report by an independent body of experts appointed by the government which raises pertinent questions about government policies not doing enough to sufficiently address systemic failures in the State’s housing system may be a turning point for housing to rise in prominence once again on the agenda for the electorate.

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Compliments of Vulcan Consulting – a member of the EACCNY.