23 August 2024

BACK TO BRUSSELS: SHAPING EU POLICY AMID GLOBAL SHIFTS

After a summer marked by significant geopolitical events - including ongoing conflicts, a new US presidential candidate, policy shifts in the UK, and the uplifting spirit of the Olympics - CLECAT is eagerly anticipating the opportunity to collaborate with the newly elected European Parliament and policy makers in Brussels.

In the coming weeks, as Members of the European Parliament (MEPs) and other policy makers return to Brussels, CLECAT plans to present its Policy Expectations for the 2024-2029 Legislative Period. This document outlines our priorities and expectations for the upcoming legislative term.

Another key development on the horizon is the forthcoming report from former Italian Prime Minister Mario Draghi, expected to be submitted to the European Commission next month. This report is anticipated to issue a strong call for a renewed focus on EU competitiveness, feeding into a broader debate on the actions the EU must take during its next legislative term. The report is likely to be influential, as it underscores the rapidly changing global landscape, where major powers like the United States and China are actively shaping policies to strengthen their competitive positions - often at the expense of the EU.

In contrast, the European Union has yet to develop an equivalent industrial strategy and still lacks a comprehensive approach to addressing multiple challenges, from technological lag to the protection of traditional industries. These challenges are exacerbated by asymmetries in regulation, trade, and subsidies, as well as the need to reduce strategic dependencies on critical raw materials and batteries. It is reassuring to note that competitiveness is central to the recommendations of both the Letta report on the future of the single market (April 2024) and the upcoming Draghi report.

Furthermore, it will be interesting to see how the legislators will advance on the Greening Freight proposals and the revision of the Combined Transport Directive. CLECAT hopes that the European Parliament's TRAN Committee will advance the revision of this Directive in collaboration with the Council Presidency. However, we recognise the challenges of creating a Directive that suits all Member States, given their differing geographical features and infrastructure. In the previous term, MEPs argued that the proposal was premature, as eFTI platforms were not yet available, and there was no tool for economic operators to certify the 50-50 split between road and non-road segments or the 40% reduction in external costs outlined in the Commission's proposal.

The Council and Parliament will start their trilogue negotiations over the CountEmissions EU proposal, which aims to establish a harmonised framework for the calculation and reporting of GHG emissions from transport services, based on the ISO 14083 standard. While CLECAT very much welcomed the Commission proposal, we raised some concerns over the Parliament’s position, such as the possible introduction of a life-cycle methodology and mandatory use of primary data for large companies. We will continue our advocacy initiatives to ensure CountEmissionsEU becomes a practical framework to help companies in calculating and reporting GHG emission of their transport services.

CLECAT is also hoping for some progress on the proposal revising the Weights and Dimensions for heavy-duty vehicles which did not reach a consensus among Member States. They remain divided on the potential increase in maximum weights for zero-emission trucks and the possibility of allowing cross-border movement of 44-tonne trucks between countries where such vehicles are already permitted domestically. There is more alignment regarding the European Modular System (EMS) provisions. Member States generally supported the Commission's proposal, with the addition of a safeguard: an ex-post assessment three years after the opening of new EMS routes. This measure is seen as less burdensome compared to the European Parliament's position. CLECAT regrets that the Hungarian Presidency of the Council has indicated a lack of interest in advancing this issue, meaning that a general approach by the Council followed by trilogues is not expected until 2025.

Other important issues for rail freight include the State Aid Guidelines, the Transport Block Exemption Regulation, and the Track Access Charging Guidelines. The latter is particularly crucial, as several Member States have announced significant increases in track access charges for freight users. This is especially concerning given the sector's additional costs due to excessive works-related disturbances and bypass routes. A competitive and efficient sustainable transport market in the EU is essential to support its climate targets. However, CLECAT emphasises the importance of avoiding over-reliance on State aid. At the same time, freight forwarders support investments in neglected railway and transshipment facilities, which are vital for enabling greener transport options.

The coming months will be interesting. As the European Parliament gears up for a new legislative term, several important milestones are on the horizon. The Transport Committee will hold its first meetings early September, setting the stage for discussions that will shape transport policy in the coming years.

Looking further ahead, October and November will see the European Parliament conducting hearings for the Commissioners-designate. These hearings are a critical step in the approval process for the new College of Commissioners, who will lead the European Commission for the 2024-2029 term. The current Commission’s term officially ends on 31 October 2024, marking the conclusion of the 2019-2024 period. Following the hearings, a plenary vote on the new College of Commissioners is expected to take place in November or December, finalising the leadership for the next five years.