#EUFridays by JEF Hungary #25
Hanna Velner
May-20-2022
Could the EU and UK face a trade war?
The British government would introduce legislation to change the special Brexit trading arrangements for Northern Ireland in the coming weeks. According to the document, Northern Ireland remained in a system of trade in goods harmonized with the EU's single internal market and customs union even after the end of British EU membership.The main reasons why the agreement should be changed is that it is now obsolete as it was made before the coronavirus epidemic, Russia’s war with Ukraine and the cost of living crisis.The deal has also been opposed by British unionists in Northern Ireland, who say the new controls have put a strain on businesses and severed ties between the rest of Northern Ireland and the UK.The Democratic Unionist Party, which came second behind Sinn Fein in May 5 elections, is blocking the formation of a new power-sharing regional government until Johnson’s government removes post-Brexit control of goods from the rest of the UK to Northern Ireland. European Union officials have previously warned that non-compliance with certain parts of the protocol could have "serious" consequences.The UK might theoretically react to any retaliation by imposing tariffs of its own. Such a levy would make it even more difficult for European producers to compete in the United Kingdom.The UK must listen to the majority of people in Northern Ireland “Literally two days ago, the people of Northern Ireland elected pro-protocol parties and candidates by a margin of 60% to 40%, right”? -said Boyle.The Northern Ireland Protocol case is currently the sharpest source of strife between the European Union and the British Government.
The EU plans to reduce its energy dependence on Russia
The European Union intends to mobilize up to €300 billion over the next five years to pay for phasing out Russian fossil fuels and speeding up the switch to green energy. Russia supplies 40% of the EU's natural gas and 27% of its oil imports. Russia has already cut off EU member states, Poland and Bulgaria after refusing to pay in rubles for natural gas. Therefore, it is very important for the eu to find a solution to the current situation as soon as possible. “It is clear we need to put an end to this dependence and a lot faster before we had foreseen before this war,” said Frans Timmermans, the EU official in charge of the green deal. “Speeding up the transition means that money can stay in Europe, can help bring down the energy bills of European families and will not be used to finance this barbaric war in Ukraine.”-he added. According to von der Leyen, 45% of the EU’s energy will come from renewables by 2030.An EU ban on coal from Russia is expected to take effect in August.However, some EU Member States continue to struggle with sanctions against Russian oil, as Hungary and other landlocked countries are concerned about the costs of switching to alternative sources. In order to speed up the introduction of renewable energy sources, the EU wants to make it easier for companies to build wind and solar energy with various subsidies.
Former German Chancellor would also be sanctioned
The parliament has passed a resolution calling for former German Chancellor Gerhard Schröder to be added to the long list of individuals blacklisted because of his links to Russia. The European Parliament on Thursday voted by a large majority in favor of sanctions against politicians who draw money from Russia and against Europeans who are in the management of large Russian companies. Schröder was German chancellor from 1998 to 2005. He then took on tasks for the pipeline company Nord Stream, the Russian Gazprom and the energy company Rosneft, among others.German government cuts Schröder’s special rights as an ex-chancellor.“Gerhard Schröder’s proximity to Putin damages Germany’s reputation,” Martin Huber, general secretary of the opposition CSU party, said on Twitter."It is outrageous that Gerhard Schröder continues to get paid for his position in Russian energy companies while the EU is struggling to cut the energy dependency links he contributed to create," told Luis Garicano, a Spanish liberal MEP. In the meantime, Schröder has lost most of his special rights in Germany. His office and staff will be cut. The budget committee of the German Bundestag decided on Thursday that the office would be "put on hold", as the parliamentary press office announced. The remaining office staff will handle the final tasks and then take on other functions.However, Schröder is unlikely to lose his pension, which equates to an annual salary of around € 100,000.