Activities of Eugen JURZYCA related to 2021/0406(COD)
Shadow opinions (1)
OPINION on the proposal for a regulation of the European Parliament and of the Council on the protection of the Union and its Member States from economic coercion by third countries
Amendments (36)
Amendment 32 #
Proposal for a regulation
Recital 5
Recital 5
(5) The modern interconnected world economy creates an increased risk of, and opportunity for,enhances the nations to engage in a dialogue, increases global investment and competition, which creates a larger variety of choices for consumers but creates also a risk of economic coercion, as it provides countries with enhanced, including hybrid, means to deploy such coercion. It is desirable that the Union contribute to the creation, development and clarification of international frameworks for the prevention and elimination of situations of economic coercion. The use of economic coercion against the Union and the Member States has steadily increased relative to its diminishing share of the global economy. Economic and productivity growth needs to remain a priority as an efficient tool for the prevention of economic coercion.
Amendment 35 #
Proposal for a regulation
Recital 6
Recital 6
(6) Whilst always acting within the framework of international law, it is essential that the Union possess an appropriate instrument to deter and counteract economic coercion by third countries in order to safeguard its rights and interests and those of its Member States. This is particularly the case where third countries take measures affecting trade or investment that interfere in the legitimate sovereign choices of the Union or a Member State by seeking to prevent or obtain the cessation, modification or adoption of a particular act by the Union or a Member State. Such measures affecting trade or investment may include not only actions taken on, and having effects within, the territory of the third country, but also actions taken by the third country, including through entities controlled or directed by the third country and present in the Union, that cause harm to economic activities in the Union. In order to effectively address the harm to economic activities, the Union needs to quantify or at least estimate the value of the impact on economic activities in the Union.
Amendment 40 #
Proposal for a regulation
Recital 7
Recital 7
(7) This Regulation aims to ensure an effective, efficient and swift Union response to economic coercion, including deterrence of economic coercion of the Union or a Member State and, in the last resort, countermeasures. In order to avoid using this Regulation incorrectly, such as to protect the Union´s industries from foreign competition, it is essential to clearly define the conditions for activation of this instrument as well as clear criteria for triggering specific actions under the mechanism.
Amendment 43 #
Proposal for a regulation
Recital 9
Recital 9
(9) In accordance with the principle of proportionality, it is necessary and appropriate, for creating an effective and comprehensivetransparent framework for Union action against economic coercion, to lay down rules on the examination, determination and counteraction with regard to third countries’ measures of economic coercion. In particular, the Union’s response measures should be preceded by an examination of the facts, a determination of the existence of economic coercion and quantification of its impact on the Union, and, wherever possible, efforts to find a solution in cooperation with the third country concerned. Any measures imposed by the Union should be commensurate with the injury caused by the third countries’ measures of economic coercion. The objective criteria for defining the Union response measures should take into account in particular the need to avoid or minimise collateral effects, administrative burdens and costs imposed on Union economic operators as well as the Union’s interest. Therefore, this Regulation does not go beyond what is necessary in order to achieve the objectives pursued, in accordance with Article 5(4) of the Treaty on European Union.
Amendment 44 #
Proposal for a regulation
Recital 11
Recital 11
(11) Coercion is prohibited under international law when a country deploys measures such as trade or investment restrictions in order to obtain from another country an action or inaction which that country is not internationally obliged to perform and which falls within its sovereignty, when the coercion reaches a certain qualitative orand quantitative threshold, depending on both the ends pursued and the means deployed. The Commission should examine the third- country action on the basis of qualitative and quantitative criteria that help in determining whether the third country interferes in the legitimate sovereign choices of the Union or a Member State and whether its action constitutes economic coercion which requires a Union response.
Amendment 46 #
Proposal for a regulation
Recital 15
Recital 15
(15) The Union should only impose countermeasures when other means such as negotiations, mediation or adjudication do not lead to the prompt and effective cessation of the economic coercion and to reparation of the injury it has caused to the Union or its Member States, and where action is necessary to protect the interests and rights of the Union and its Member States and it is in the Union’s interest. It is appropriate that the Regulation sets out the applicable rules and procedures for the imposition and application of Union response measures and permits expeditious action where necessary to preserve the effectiveness of any Union response measures. Such applicable rules and published guidelines should ensure that the Regulation avoids advocating protectionism in order to promote open and rules-based trade.
Amendment 49 #
Proposal for a regulation
Recital 16
Recital 16
(16) Union response measures adopted in accordance with this Regulation should be selected, calculated and designed on the basis of objective criteria, including: the effectiveness of the measures in inducing the cessation of coercion by the third country; their potential to provide relief to economic operators within the Union affected by the third-country measures of economic coercion; the aim of avoiding or minimising negative economic and other effects on the Union; and the avoidance of disproportionate administrative complexity and costs. It is also essential that the selection and design of Union response measures take account of the Union’s interest. Union response measures should be selected from a wide array of options in order to allow the adoption of the most suitable measures in any given case.
Amendment 50 #
Proposal for a regulation
Recital 18
Recital 18
(18) In pursuing the objective of obtaining the cessation of the measure of economic coercion, Union response measures consisting of restrictions on foreign direct investment or on trade in services should only apply with regard to services supplied, or direct investments made, within the Union by one or more legal persons established in the Union which are owned or controlled by persons of the third country concerned where necessary to ensure the effectiveness of Union response measures and in particular to prevent their avoidance. The decision to impose any such restrictions will be quantified and duly justified in implementing acts adopted pursuant to this Regulation in the light of the criteria specified in this Regulation.
Amendment 54 #
Proposal for a regulation
Recital 22
Recital 22
(22) In order to allow the update of the range of Union response measures under this Regulation and the adjustment of the rules of origin or of other technical rules, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to amend the list of Union responses set out in Annex I and technical rules necessary for the application of the Regulation, including rules of origin laid down in Annex II. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making.12 In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States' experts, and their experts systematically should have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 12 OJ L 123, 12.5.2016, p. 1.
Amendment 56 #
Proposal for a regulation
Recital 26
Recital 26
(26) The Commission should thoroughly evaluate measures adopted under this Regulation as to their effectiveness, impact, cost-benefit ratio and operation and as to possible conclusions for future measures. The Commission should also review this Regulation after gaining sufficient experience with the existence or application of this Regulation. This review should cover the scope, functioning, efficiency, impact and effectiveness of this Regulation. The Commission should report regularly on its assessment to the European Parliament and the Council,
Amendment 62 #
Proposal for a regulation
Article 2 – paragraph 2 – point a a (new)
Article 2 – paragraph 2 – point a a (new)
(a a) the extent to which a third country's coercion is a reaction to an action of a Member State, and whether Member State consulted the Commission or other Member States about potential consequences of such action;
Amendment 63 #
Proposal for a regulation
Article 2 – paragraph 2 – point a b (new)
Article 2 – paragraph 2 – point a b (new)
(a b) whether the third country concluded the trade agreement or other trade partnership with the Union;
Amendment 66 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2 a. By 30 June 2023, the Commission shall adopt guidelines with a clarification on the application of each criteria set out in paragraph 2, the methodology to quantify the economic coercion, the criteria for the establishment of measures of economic coercion together with examples and clarification on applying the Union response measures in Annex I to facilitate application of this Regulation. Those guidelines shall clearly differentiate measures stipulated in this Regulation from other forms of the EU trade defense instruments. Those guidelines shall be regularly updated.
Amendment 68 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. The Commission may carry out the examination referred to in paragraph 1 on its own initiative or following information received from any source. The Commission shall carry out the examination referred to in paragraph 1 following information received from at least 4 Member States. The Commission shall ensure the protection of confidential information in line with Article 12, which may include the identity of the supplier of the information.
Amendment 71 #
Proposal for a regulation
Article 3 – paragraph 3 – introductory part
Article 3 – paragraph 3 – introductory part
3. The Commission mayshall seek information about the impact of the measures of the third country concerned. The Commission shall quantify and publish the impact of the measures or provide the best estimate of the impact, where applicable.
Amendment 75 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Following an examination carried out in accordance with Article 3, and endorsement of the examination results by the Member States, the Commission shall adopt a decision determining whether the measure of the third country concerned meets the conditions set out in Article 2(1). The Commission shall act expeditiously.
Amendment 77 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
Prior to adopting its decision, the Commission mayshall invite the third country concerned to submit its observations.
Amendment 84 #
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
The Commission shall remain open to engage with the third country concerned after the adoption of Union response measures pursuant to Article 7. The Commission may pursue these efforts, as the case may be, in conjunction with a suspension, pursuant to Article 10(2), of any Union response measures.
Amendment 89 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1
Article 7 – paragraph 1 – subparagraph 1
In the implementing act, the Commission shall also determine the appropriate Union response from among the measures provided for in Annex I. Such measures may also apply with regard to natural or legal persons designated in accordance with Article 8. The Commission may also adopt measures which it can take pursuant to other legal instruments. Such measures shall not violate international law.
Amendment 95 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. On duly justified imperative grounds of urgency to avoid irreparable quantified damage to the Union or its Member States by the measures of economic coercion the Commission shall adopt immediately applicable implementing acts imposing Union response measures, in accordance with the procedure referred to in Article 15(3). The requirements set out in paragraphs 2 to 5 shall apply. Those acts shall remain in force for a period not exceeding three months.
Amendment 96 #
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
Amendment 100 #
Proposal for a regulation
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. The Commission shall select and design an appropriate response measure taking into account the determination made pursuant to Article 4, the criteria set out in Article 2(2) and the Union’s interest, on the basis of available information, including as collected pursuant to Article 11, and the following objective criteria:
Amendment 103 #
Proposal for a regulation
Article 9 – paragraph 2 a (new)
Article 9 – paragraph 2 a (new)
2 a. By 30 June 2023, the Commission shall adopt guidelines to clarify application of each criteria set out in paragraph 2, criteria establishing calculation, selection and design of response measures together with examples and the minimum thresholds to trigger response measures for the injury to the Union or a Member State due to the third country’s measures of economic coercion. Those guidelines shall be regularly updated.
Amendment 104 #
Proposal for a regulation
Article 9 – paragraph 3 – subparagraph 1
Article 9 – paragraph 3 – subparagraph 1
Any decision to apply restrictions with regard to services supplied, or direct investments made, within the Union by one or more legal persons established in the Union shall be duly justified and impacts of those restrictions shall be quantified in the implementing act referred to in paragraph 1 of Article 7 in light of the above criteria.
Amendment 106 #
When at least four Member States inform the Commission that they consider the decision unsatisfactory, they shall inform the Commission thereof with a detailed explanation within 30 days after its adoption and the Commission shall, after consulting the committee responsible, decide to maintain, to maintain with restriction or to withdraw that decision.
Amendment 110 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. Where it is necessary to make adjustments to Union response measures taking into account the conditions and criteria laid down in Articles 2 and 9(2), analysis of the effectiveness of the Union response measures or further developments, including the third country’s reaction, the Commission may, as appropriate, amend Union response measures adopted in accordance with Article 7, by means of an implementing act, in accordance with the examination procedure referred to in Article 15(2).
Amendment 118 #
Proposal for a regulation
Article 11 – paragraph 4 – point a a (new)
Article 11 – paragraph 4 – point a a (new)
(a a) the impact of such measures on consumer welfare in the Union, economic and productivity growth of Union and Member States and impact on businesses;
Amendment 119 #
Proposal for a regulation
Article 11 – paragraph 4 – point b a (new)
Article 11 – paragraph 4 – point b a (new)
(b a) the interaction of such measures with the measures of third countries also affected by the economic coercion, including consideration of third countries best practices;
Amendment 122 #
Proposal for a regulation
Article 11 – paragraph 6
Article 11 – paragraph 6
6. Prior to the adoption of an implementing act in accordance with Article 7(6) or Article 10(5), the Commission shall seek information and views from relevant stakeholders in a targeted manner, unless the imperative grounds of urgency are such that information seeking and consultations are not possible or not needed for objective reasons, for instance to ensure compliance with international obligations of the Unionare not possible or for instance to ensure compliance with international obligations of the Union. The implementing act shall include the detailed explanation in case no consultation in accordance with this article took place.
Amendment 123 #
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. Paragraph 2 shall not preclude the Commission to disclose general information in a summary form, which does not contain information allowing to identify the supplier of the information. The Commission shall consult the summary form with the supplier of information prior to the disclosure. Such disclosure shall take into account the legitimate interest of the parties concerned in not having confidential information disclosed.
Amendment 124 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 7(7) and 13(2) shall be conferred on the Commission for an indeterminate period of time from [date of entry into force].
Amendment 125 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The delegation of power referred to in Articles 7(7) and 13(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 126 #
Proposal for a regulation
Article 14 – paragraph 5 – subparagraph 1
Article 14 – paragraph 5 – subparagraph 1
A delegated act adopted pursuant to Articles 7(7) and 13(2) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Amendment 130 #
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. No later than three years after the adoption of the first implementing act under this Regulation orEvery six years and for the first time six years after the entry into force of this Regulation, whichever is earlier, the Commission shall review this Regulation and its implementation and shall report to the European Parliament and the Council.
Amendment 132 #
Proposal for a regulation
Article 16 – paragraph 2 a (new)
Article 16 – paragraph 2 a (new)
Amendment 134 #
Proposal for a regulation
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
This Regulation shall expire on 31 December 2032.