Lecture 8

• What is the Temporary Framework for State Aid adopted on March 19 2020?

  It allowed member states to fully utilize state aid rules flexibility to support the economy during the COVID-19 outbreak, using Article 107(3) TFEU.
• What are the key measures taken by the EU to protect technology and critical assets during COVID-19?

  Guidelines were issued on March 26, 2020, for screening foreign direct investments in critical areas like medical research and infrastructure.
• What is the General Budget Safeguard Clause activated on March 20 2020?

  It allowed deviations from standard budgetary requirements to handle the crisis, suspending the Excessive Deficit Procedure (EDP) until 2024.
• What is the purpose of the rescEU program launched on March 19 2020?

  rescEU is a strategic stockpile of medical equipment created to support member states during emergencies.
• What does the SURE program entail?

  Created in April 2020, it provides €87.8 billion to mitigate unemployment risks during the pandemic.
• How did the EU revise the Multiannual Financial Framework (MFF) for 2021-2027 in response to COVID-19?

  The MFF proposal was combined with the Next Generation EU recovery plan to support medium- and long-term recovery.
• What is Next Generation EU?

  It is a recovery instrument with a budget of €806.9 billion, distributed through grants and loans, focusing on public investments, green and digital projects.
• What is the EU's climate neutrality goal?

  The EU aims to achieve climate neutrality by 2050 and reduce greenhouse gas (GHG) emissions by 55% by 2030.
• What percentage of GHG emissions is accounted for by energy production and consumption in the EU?

  75% of GHG emissions come from energy production and consumption.
• What are the EU's energy efficiency targets for 2030?

  The EU aims for a 45% reduction in energy consumption by 2030.
• What are the primary objectives of energy regulation in the EU?

  Promote liberalization, innovation, affordability, availability, and environmental protection.
• What is the percentage of energy imported by the EU?

  The EU imports 56% of its energy.
• What are the main sources of domestic energy production in the EU?

  Renewables and nuclear power are significant sources of domestic energy production.
• What is the aim of creating a unified electricity market in the EU?

  To enhance price convergence and interconnections between member states.
• What is the European Emissions Trading System (EU ETS)?

  A cap-and-trade system where emission allowances are auctioned, creating a market price for emissions and promoting reductions.
• What sectors are being expanded into the EU ETS?

  The system is being expanded to include air and maritime transport.
• What is the Carbon Border Adjustment Mechanism (CBAM)?

  A tariff on carbon-intensive imports ensuring that imported goods meet EU emissions standards, set to start in 2026.
• What is the EU's plan for green hydrogen?

  The EU plans to significantly increase green hydrogen production to address supply, demand, and transportation challenges.
• What is the Stability and Growth Pact (SGP)?

  The SGP ensures the sustainability of public budgets while allowing flexibility in economic crises, with limits on deficits and debt, and fines for non-compliance.
• What are the components of the SGP?

  • Excessive Deficit Procedure (EDP)
  • Preventive Arm
  • Corrective Arm
• What is the Excessive Deficit Procedure (EDP)?

  EDP limits deficits to 3% of GDP and debt to 60% of GDP, with fines for non-compliance.
• What is the purpose of the Preventive Arm of the SGP?

  To apply peer pressure to avoid reaching deficit and debt limits during bad years, with annual fiscal plan submissions by member states.
• What is the Multiannual Financial Framework (MFF)?

  The MFF ensures predictable and disciplined EU spending over seven years, defining maximum amounts for major expenditure areas.
• What is the current MFF (2021-2027) budget?

  The current MFF budget is €1.211 trillion.
• What must member states do to receive funds from NextGenerationEU?

  Member states must submit Recovery and Resilience Plans to receive funds.
• Cap-and-Trade System (EU ETS) (Example of how this system works)

  If a company has excess allowances, it can sell them; if it needs more, it can buy from others.