News

10 March 2023

Newsflash - 10 March 2023

EU Year of Skills: Agreement between the European Parliament and the Council and start of activities on 9 May 2023

On Tuesday 7 March 2023, negotiators of the Council and the European Parliament concluded an agreement on the EU Year of Skills, which will start on 9 May 2023 and conclude on 8 May 2024. The deal will be approved by the EPSCO Council and the plenary of the European Parliament in the coming weeks.

The overall objective of the European Year of Skills will be to promote a mindset of reskilling and upskilling across the EU. The aim will be to boost the competitiveness of EU enterprises and create quality jobs. Focus on reskilling and upskilling should also help to close skill gaps and shortages. Labour shortages in critical sectors for the green transition doubled between 2015 and 2021. At the same time, 4 out of 10 adults and every third person who works in Europe lacks basic digital skills. Boosting people's skills is a condition to respond to the twin green and digital transitions.

In the EU Year of Skills context, SGI Europe intends to focus on the impacts of the green transition and the most in-demand occupations while exchanging best practices and improving collaboration between employers and VET providers. The conclusions of the project "Green Skills in VET" project, carried out by SGI Europe and its member EFEE (European Federation of Education Employers) and co-funded by the European Commission, highlighted the skills needs of SGI providers operating in the water, energy, and transport sector. You can access the final report in English and the political report in English, Spanish, German, and French.

Contact: Benoît Cassorla

The European Commission prolongs and amends the Temporary Crisis and Transition Framework

On 9 March 2023, the European Commission prolonged and amended the Temporary Crisis Framework, renamed the Temporary Crisis and Transition Framework (TCTF). This prolongation of the TCTF has been accompanied by the General Block Exemption Regulation (GBER) amendment to accelerate the green transition further.

The amendment introduces additional measures to support investment in renewable hydrogen and critical technologies for the green transition, including batteries, solar panels, wind turbines, heat pumps, electrolysers and carbon capture usage and storage. Additionally, it increases aid intensities and simplifies the calculation of aid. Since the TCTF is also a response to the US Inflation Reduction Act, it introduces "matching aid" to secure industry from relocating outside the EU by providing a similar level of aid and investment.

This amendment prolongs the TCTF until 31 December 2025. However, while national authorities must notify their support schemes (or individual aid) before that date, the actual disbursement can happen afterwards. However, state support measures to overcome liquidity problems remain applicable until 31 December 2023.

The TCFT is accompanied by a targeted revision of GBER, raising the notification thresholds for green aid automatically deemed compatible with the internal market. This updated GBER will help better support the rollout of renewable energy, facilitate investments in green hydrogen, support decarbonisation projects, increase energy efficiency or support green mobility.

Contact: Manca Pocivavsek

The European Commission adopts its fiscal policy guidance for 2024

The European Commission adopted its communication on the fiscal policy guidance for 2024 on 8 March 2023. The communication sets out guidance that will help inform the preparation of stability and convergence programmes in which Member States lay out their medium-term fiscal-structural plans. It will be followed in the spring with fiscal country-specific recommendations for 2024 that will guide the preparation and assessment of the Draft Budgetary Plans in the autumn.

To ensure medium-term debt sustainability and sustainably raise potential growth in 2023-2024, the European Commission will allow countries greater flexibility in reducing public debt. It will not introduce financial sanctions before 2024 as part of an interim fix while waiting for a longer-term deal on EU rules on government spending.

In this regard, and in light of the anticipated lifting of the General Escape Clause at the end of 2023, the Commission intends to table legislative proposals following the upcoming March ECOFIN and European Council, which will spell out the critical elements of the future economic governance framework.

SGI Europe welcomes this communication and the review of the economic governance framework, which should better consider the new global economic situations and the specific situation of Member States currently mitigating the impact of the energy crisis on enterprises and consumers.

Contact: Guillaume Afellat

One year of temporary protection for people fleeing Russian aggression against Ukraine

On Wednesday 8 March, the European Commission adopted a Communication on the implementation of the Temporary Protection Directive (TPD). The communication takes stock of the implementation of the TPD, which was triggered for the first time on 4 March 2022 to protect people fleeing the war following Russia's aggression against Ukraine.

Around 4 million people from Ukraine were granted immediate protection in the EU. With the activation of the TPD, all those registered had the right to access the labour market (also supported through the Talent Pool Pilot launched in October 2022), education, healthcare, and accommodation. The TPD provided immediate protection while reducing formalities to the minimum. Amongst others, it allowed EU Member States to ease access to registration and documentation, education and vocational training, healthcare and social benefits, jobs, accommodation and housing while addressing risks of human trafficking and supporting victims of war crimes.

In one year, the Temporary Protection Directive has proven to be an essential instrument to provide immediate protection in the EU. Considering this track record, SGI Europe calls for ensuring it remains a crucial instrument for future refugee and migration crises.

Contact: Maxime Staelens

European Commission discusses at the European Parliament the RePowerEU plan and updates on the Renewable Energy Directive delegated acts 

On 9 March, Kadri Simson, European Commissioner for Energy, addressed the European Parliament's Committee on Industry, Research and Energy (ITRE), marking the first anniversary of the presentation of RePowerEU. The European Commission adopted the measures on 8 March 2022 as the EU plan to end dependency on Russian fossil fuels in light of Russia's unjustified aggression against Ukraine.

Speaking to the ITRE members, Commissioner Simson also underlined the impacts of the proposals for sanctions on coal, oil and gas from Russian origins whilst staying on course with the EU Green Deal. Despite the difficulty balancing the political need to react and introduce economic sanctions, carbon emissions dropped in Europe by 2,5% last year. However, energy prices have risen and are still extremely high, with huge impacts on critical infrastructures in transport, water and waste sectors, challenging daily operations and long-term climate and energy ambitions. 

The European Commission also presented two delegated acts: the first setting rules for producing renewable liquid and gaseous transport fuels of non-biological origin, and the second setting threshold and methodology for assessing greenhouse gas emissions savings. 

For SGI Europe, the quick adoption and implementation of RePowerEU was the much-needed EU answer to the energy crisis. To ensure and safeguard SGI providers' security in this crisis, any market intervention to artificially correct energy prices will have harmful effects in the long term. EU solutions must treat the problem and not only the consequences. Looking ahead, the revision of the Electricity Market Design (EMD) will have to bring changes and solutions to the root of the problem, with a specific focus on the security of supply and on the need for stable prices with low-cost and low-carbon sources to consumers in the new market design. 

Contact: Henriette Gleau

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