EU Political Update: 22 – 26 May 2017
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22 – 26 May 2017
Briefing note
EU Political Update:
22 – 26 May 2017
Week in Review – announcements and
publications
Free trade: CJEU says free trade agreement
between EU and Singapore cannot be concluded
by EU alone
On 16 May 2017, the Court of Justice of the European Union (CJEU)
declared that the free trade agreement with Singapore cannot, in its current
form, be concluded by the EU alone. Due to the fact that there are certain
provisions in the agreement which relate to non-direct foreign investment
and to dispute settlement between investors and states, the agreement must
be concluded by the EU and the Member States acting together. This is
because these provisions do not fall within the exclusive competence of the
EU but rather under competences shared between the EU and the Member
States.
The Court's opinion related to a request submitted by the Commission for an
opinion on whether the EU had exclusive competence to sign and conclude
the free trade agreement, which was initialled by Singapore and the EU on
20 September 2013. The Commission and Parliament contended that the
EU has exclusive competence, whilst the Council and governments of all
Member States which submitted observations to the Court concluded that
the competence was shared. The Court ultimately agreed with the Council
and Member State governments that the competence was shared.
Key issues

Week in Review –
announcements and
publications

People on the move

This week in the institutions
Contacts
Brussels
Thomas Vinje +32 (0)2 533 5929
Andriani Ferti +32 (0)2 533 5057
London
Simon Gleeson +44 (0)20 7006
4979
Phillip Souta +44 (0)20 7006 1097
Paris
Michel Petite +33 (0)1 44 05 52 44
In order for the EU to have exclusive competence in the case of a non-direct
foreign investment, the agreement's conclusion must be capable of affecting EU acts or altering their scope,
which was found not to be the case in this instance. A regime governing dispute settlement between investors
and states removes disputes from the jurisdiction of Member States' courts and therefore requires Member
State consent.
The Court did find that the EU has exclusive competence on provisions in the agreement related to the following:
(i) accessing the EU and Singapore markets for goods and services, public procurement, and energy generation
from sustainable non-fossil sources; (ii) protection of direct foreign investments of Singapore nationals in the EU
(and vice versa); (iii) intellectual property rights; (iv) addressing anti-competitive activity; (v) sustainable
development; and (vi) rules on information exchange and obligations on notification, verification, cooperation,
mediation, transparency, and dispute settlement between the parties.
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EU Political Update: 22 – 26 May 2017
Free movement of services: Parliament approves rules allowing online
subscriptions abroad
On 17 May 2017, the European Parliament approved rules which will permit subscribers to online film, TV, ebook and music services to use their subscriptions when travelling in the EU for a limited period (e.g. on holiday,
business, study trip).
Nearly 11% of European households have a video on demand subscription (Netflix being the most popular
service), a number which is expected to double by 2020. In addition to allowing users who have paid for the
right to consume online content from a home country provider to enjoy that same content in other EU countries,
the Regulation is anticipated to also discourage piracy by promoting access to legally acquired content. The
Regulation is also complimentary to the upcoming end to roaming, which will take place on 15 June 2017. In
addition, Parliament is considering new geo-blocking rules, which would prevent sellers from discriminating
against customers on the basis of their location in the EU.
The Regulation will come into effect in the first half of 2018, and applies also to subscriptions which are already
in place.
Brexit: Parliament welcomes unity amongst Member States and
institutions, calls for EU reform
On 17 May 2017, the European Parliament welcomed the unity of the 27 Member States and EU institutions –
who have said they are determined to act together in order to reach a balanced agreement with the UK – on
Brexit, whilst calling for EU reform.
European Council President Donald Tusk presented to Parliament the Guidelines for Brexit negotiations, which
had been agreed by the Member States on 29 April, and welcomed alignment with Parliament's "red lines". The
negotiating mandate will be presented for adoption on 22 May at a Council meeting.
According to negotiator Michel Barnier, the debate has centered around the basis for future negotiation. For
example, it was posited that no negotiations on the future UK-EU relationship should occur before more
progress on the exit agreement has been made, that the rights of EU citizens affected by Brexit need to be
protected, that the Northern Ireland peace process should be upheld, and that the UK must respect the financial
commitments it made whilst a Member State. MEPs also discussed the rise of populism in Europe, saying that
despite recent victories of pro-European parties, there is still reason for worry, as "populism and nationalism are
not dead".
Negotiations with the UK will commence after the UK national election on 8 June.
Digital Economy: President Juncker announces intention to allocate
Digital Economy and Society portfolio to Mariya Gabriel
On 16 May 2017, European Commission President Jean-Claude Juncker announced his intention to allocate
the Digital Economy and Society portfolio to Mariya Gabriel, the candidate nominated by the Bulgarian
Government to replace former Member of the Commission Kristalina Georgieva. Following an interview with
President Juncker, Mariya Gabriel was confirmed to have the competencies required under Article 17(3) of the
Treaty on European Union (TEU) to become candidate for Commissioner.
In a Mission Letter sent from President Juncker to Mariya Gabriel, he detailed the main tasks she will be
required to undertake as Commissioner for the Digital Economy and Society, and highlighted the need to "make
EU Political Update: 22 – 26 May 2017
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much better use of the opportunities offered by digital technologies which know no borders". The Commissioner
for the Digital Economy and Society supports implementation of the Digital Single Market Strategy, adopted by
the Commission in May 2015, and contributes to projects coordinated by Vice-President Andrus Ansip in charge
of the Digital Single Market and Vice-President Jyrki Katainen in charge of Jobs, Growth, Investment and
Competitiveness.
Regarding next steps, the process will now follow Article 242(2) TFEU and point 6 of the Framework Agreement
between the European Parliament and the European Commission. In the coming weeks, an exchange of views
between Mariya Gabriel and the relevant Committee of the European Parliament will take place. Once the
Council formally consults the European Parliament, Mariya Gabriel will be Commissioner-Delegate. Whilst she
will have the right to drawn on Commission services to prepare for the exchange of views, she will not take part
in College meetings until her appointment by the Council.
Antitrust: Facebook fined €110 million by Commission for providing
misleading information about WhatsApp takeover
On 18 May 2017, Facebook was fined €110 million by the European Commission for providing incorrect or
misleading information while being investigated by the Commission in 2014 under the EU Merger Regulation for
the acquisition of WhatsApp. This is the first time that the Commission has imposed fines on a company for
provision of incorrect or misleading information since the entry into force of the 2004 EU Merger Regulation.
Under the EU Merger Regulation, companies in a merger investigation must provide correct information which is
not misleading, an obligation which applies whether or not the information impacts the merger assessment
outcome. In 2014, when Facebook notified its Whatsapp acquisition, it told the Commission that it would not be
able to establish automated reliable matching between the accounts of Facebook and Whatsapp users.
However, when Whatsapp announced updates to its terms of service of privacy policy in August 2016, it
mentioned the possibility of linking the phone numbers of Whatsapp users to the identities of Facebook users.
Margreth Vestager, Commissioner in charge of competition policy, said that the decision to impose a
"proportionate and deterrent" fine on Facebook sends a clear message that companies must comply with all
aspects of EU merger rules, and emphasized the importance of having accurate information when making
decisions on the effects of mergers on competition.
Taking into account the nature, gravity and duration of the infringement and the fact that Facebook staff was
aware of the relevance of user matching for the Commission's assessment, the Commission concluded that the
€110 million fine was both proportionate and deterrent. The decision does not impact the Commission's October
2014 decision to authorise the transaction under the EU Merger Regulation.
Capital markets union: Council adopts new prospectus rules for issuing
and offering of securities
On 16 May 2017, the Council adopted new prospectus rules for the issuing and offering of securities, replacing
Directive 2003/71/EC. The Regulation – which was adopted at a meeting of the General Affairs Council without
discussion – is intended to lower one of the main regulatory hurdles which companies encounter when issuing
equity and debt securities.
The new prospectus rules simplify administrative obligations on prospectus publication, whilst ensuring that
investors remain well-informed.
Most of the Regulation's provisions will apply 24 months after coming into force.
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EU Political Update: 22 – 26 May 2017
Fintech: EU Parliament adopts Resolution on influence of technology on
future of financial sector
On 18 May 2017, the EU Parliament adopted an own-initiative Resolution on technology's influence on the
future of the financial sector, calling on the EU Commission to develop an action plan enabling new and
innovative technologies to develop in the framework of the Capital Markets Union and Digital Single Market.
The Resolution specifically implores the Commission to draw up a comprehensive "FinTech Action Plan" which
will contribute to a European financial system which is "efficient and competitive, deeper and more integrated,
and stable and sustainable", and which provides long-term economic benefits and addresses the needs of
consumer and investor protection and regulatory certainty. The Resolution also calls on the Commission to use
a proportionate, cross-sectorial and holistic approach to its fintech work, drawing on what has been done in
other jurisdictions and adapting to the diversity of actors and business models used.
The Resolution also covers such issues as cybersecurity and data protection, the interoperability and
passporting of fintech services within the EU, providing a level playing field for traditional companies and startups, and controlled experimentation with new technologies, and fostering financial education and IT skills.
People on the Move
European Commission

Mr Stefaan Hermans has been appointed as Director for Policy Strategy and Evaluation in the European
Commission department for Education, Youth, Sport, and Culture (DG EAC). Mr Stefaan Hermans, a
Belgian national, joined the Commission in 1994 and first became Head of Unit in 2008. Since November
2014, he was Head of the office of Commissioner for Employment, Social Affairs, Skills and Labour Mobility,
Marianne Thyssen. The appointment will take effect immediately

Ms Sophia Eriksson Waterschoot has been appointed as Director for Youth, Education and Erasmus+ in
DG EAC. Ms Sophia Eriksson Waterschoot, a Swedish national, joined the Commission in 1996 and first
became Head of Unit in 2013. In 2012, she worked in the office of the former Commissioner for Education,
Culture, Multilingualism and Youth, Androulla Vassiliou. Currently, she is serving as Acting Director for
Youth, Education and Erasmus+ in DG EAC. The appointment will take effect immediately

Mr Dominik Schnichels has been appointed as Director for Investigations in the European Anti-Fraud
Office (OLAF). Mr Dominik Schnichels, a German national, joined the Commission in 1995 and first became
Head of Unit in 2008. He is currently Head of unit for Pharmaceuticals, Health technology assessments and
substances of human origin in the department of Health and Food Safety (DG SANTE). The appointment
will take effect on 16 June 2017

Mr John Watson has been appointed as Director for Smart Regulation and Work Programme in the
Secretariat-General (SG). Mr John Watson, an Irish national, joined the Commission in 1995. In 2008, he
became Head of Unit for Better Regulation and subsequently for Policy Co-ordination at the SG. Since 2014
he has been the Commission Representative in the meetings of the Permanent Representatives of the
Member States Governments to the European Union (COREPER I). The appointment will take effect on 1
July 2017
EU Political Update: 22 – 26 May 2017
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Mr Fabrizio Donatella has been appointed as Principal Adviser for Development of Fisheries Law the
European Commission department for Maritime Affairs and Fisheries (DG MARE). Mr Fabrizio Donatella, an
Italian national, joined the Commission in 1992. In 2006, he became a Head of Unit and has since then
been dealing with various matters related to EU maritime affairs and fisheries policy. Currently, Mr Donatella
is leading the team in charge of Fisheries Control and Inspections at DG MARE. The appointment will take
effect immediately.
This week in the Institutions
European Commission
22 May

Vice-President Andrus Ansip will receive Mr Christian Van Thillo, CEO of Persgroep and Chairman of the
European Publishers Council.

Vice-President Maroš Šefčovič will receive Mr Christian Westermeier, President of SolarPower Europe

Vice-President Valdis Dombrovskis will deliver a keynote speech 'What are the next steps for better
economic governance in the Eurozone?' at the European Business Summit, in Brussels.

Commissioner Cecilia Malmström will deliver a speech at a roundtable 'Europe's trade strategy: new trade
deals for Europe' at the European Business Summit, in Brussels.

Commissioner Vĕra Jourová will be in Prague, the Czech Republic to deliver a keynote speech at the
International e-Privacy Meeting, organised by the International Association of Privacy Professionals (IAPP)

Commissioner Julian King will receive Mr Meng Hongwei, President of the International Police Organisation
(INTERPOL)

Commissioner King will deliver a keynote speech on 'Protecting our Individual Freedom: European Security
for Companies and Citizens' at the European Business Summit, in Brussels
22 - 23 May

Commissioner Karmenu Vella will be in Malta to deliver a speech at a conference on Circular Economy
organised by Ms Miriam Dalli, Member of the European Parliament.

Commissioner Vytenis Andriukaitis will be in Ireland to visit the 'Health and food audits and analysis'
Directorate of the European Commission's Directorate-General for Health and Food Safety together with Mr
Simon Harris, Minister for Health of Ireland, and Mr Andrew Doyle, Minister of State for Food, Forestry and
Horticulture. He will also participate in a Citizens' Dialogue on Health and Food Safety, together with Ms
Mairead McGuinness, Member of the European Parliament
23 May

President Jean-Claude Juncker will meet Mr Donald Tusk, President of the European Council; and Mr Jens
Stoltenberg, Secretary-General of NATO, for a working lunch
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EU Political Update: 22 – 26 May 2017
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First Vice-President Frans Timmermans will be in New York, the United States to deliver the opening
remarks at the seminar on Sustainable Development, Global Partnership Dialogue 2017. He will also meet
Mr Peter Thomson of Fiji, President of the 71st United Nations General Assembly and Mr Amina
Mohammed, Deputy Secretary-General of the United Nations

Vice-President Jyrki Katainen will receive Mr Ambroise Fayolle, Vice-President of the European Investment
Bank (EIB)

Commissioner King will be in Vienna, Austria to deliver opening remarks at the "OSCE-wide CounterTerrorism Conference 2017: Preventing and Countering Violent Extremism and Radicalisation that Leads to
Terrorism"
23 - 24 May

Workshop of the role of science and technology parks and incubators in innovation ecosystems – Greece
24 May

Weekly College of Commissioners

High Representative Federica Mogherini will host a working dinner with the Prime Ministers of the Western
Balkans 6 (WB6)

Vice-President Ansip and Commissioner Vĕra Jourová will deliver speeches at a business roundtable on
General Data Protection Regulation (GDPR) implementation and Privacy Shield
25 May

President Juncker will together with Mr Donald Tusk, President of the European Council, meet Mr Donald
Trump, President of the United States, in Brussels

President Juncker will together with Mr Donald Tusk, President of the European Council, meet Mr Recep
Tayyip Erdoğan, President of Turkey, in Brussels

President Juncker will receive Mr Emmanuel Macron, President of France

Commissioner Vella will be in London, the United Kingdom to deliver a speech entitled 'Our circular future:
setting standards to create new opportunities around the globe' at the Circular Economy Summit
'Accelerating a business model revolution' organised by the Financial Times.
26 - 27 May

President Juncker will be in Taormina, Italy to hold a joint press conference together with Mr Donald Tusk,
President of the European Council, ahead of the G7 Summit and will participate in the G7 Summit.
EU Political Update: 22 – 26 May 2017
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Council of the European Union
21 - 23 May
 Informal meeting of agriculture ministers
22 May
 Eurogroup. On the agenda:

o
Economic situation in the euro area – Commission spring forecast and inflation developments
o
Spain – Post-programme surveillance – 7th review – oral debrief
o
Greece – State of play
General Affairs Council (Art. 50). On the agenda:
o
Adoption of decision authorising the opening of Brexit negotiations with the UK and nominating the
Commission as the EU negotiator
o
Adoption of negotiating directives for the Brexit negotiations
o
Adoption of decision to establish an ad hoc workin party that will assist the Council and Coreper in
all matters relating to the UK's withdrawal from the European Union
22 – 23 May
 Education, Youth, Culture and Sports Council
23 May
 Economic and Financial Affairs Council. On the agenda:
o
Reach an agreement on the proposal for the Council directive on taxation dispute resolution
mechanisms in the EU
o
Briefing on the progress achieved in the technical examination of the proposal for a Council
directive to introduce a common corporate tax base in the EU
o
Adopt conclusions on the results of the in-depth-reviews of macroeconomic imbalances
o
Exchange of views on two reports related to the movement of capital in the EU:

2016 Report by the Economic and Financial Committee on the movement of capital and the
freedom of payments

Report by the European Commission on addressing national barriers to capital flows to
facilitate the establishment of the Capitals Markets Union
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EU Political Update: 22 – 26 May 2017
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Briefing on the outcomes of the G20 meeting of finance ministers and central bank governors which
took place on 20-21 April 2017, and of the spring meetings of the International Monetary Fund and
the World Bank, which took place on 21-23 April 2017, in Washington, D.C
 EU- Armenia Cooperation Council
European Council - The President's agenda
23 May
 Meeting with President of the European Commission Jean-Claude Juncker and NATO Secretary-General
Jens Stoltenberg
24 May
Aachen (Germany)

Speech at the dinner in honour of Charlemagne Prize Laureate 2017, Timothy Garton Ash
25 May

Welcome of President of the United States Donald Trump

Meeting with President of the United States Donald Trump and President of the European Commission
Jean-Claude Juncker

Enlarged meeting including European Parliament President Antonio Tajani and High Representative
Federica Mogherini

Meeting with President of Turkey Recep Tayyip Erdoğan and President of the European Commission JeanClaude Juncker
26 May
 Joint press briefing with President of the European Commission Jean-Claude Juncker
European Parliament
This is an external parliamentary activities week.
Court of Justice of the European Union – This week's judicial calendar
There are no hearings scheduled this week.
EU Political Update: 22 – 26 May 2017
This publication does not necessarily deal with every important topic
or cover every aspect of the topics with which it deals. It is not
designed to provide legal or other advice.
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