Five EU developments impacting the legal sector

We are pleased to share this bi-monthly brief highlighting 5 EU developments impacting the legal sector and creating opportunities to make a difference with EU lawmakers. Originally published as Passerelle’s Passe-Parole Newsletter Issue no. 8.  

By Dr. Fiona Murray, Passerelle

Passerelle is Amplia Group’s partner and bridge to Europe. Passerell is a Brussels-based EU affairs consultancy. We help legal practitioners and professionals, law firms and legal associations to engage constructively with the EU institutions on issues relevant for the profession, thus building lasting and trusted partnerships, influence and reputation in Europe. We are founders of and manage the European Justice Stakeholders Forum. Subscribe to their free bi-monthly newsletter here.

At issue...

European Green Deal; new strategies to regulate Artificial Intelligence (AI), Data & Online Platforms; review of EU Anti-Money Laundering framework; EU push for regulation on Business & Human Rights; plus European Justice Stakeholders’ Forum news.

1 European Green Deal

The European Green Deal (EGD) is the European Commission’s flagship initiative for the coming 5 years. Launched in December 2019, the EGD’s overall aim is to make Europe the world’s first climate-neutral continent by 2050. A first roadmap of planned cross-cutting measures for 2020 includes a proposed European ‘Climate Law’ enshrining the 2050 neutrality objective; a Circular Economy Action Plan with a particular focus on resource-intensive sectors such as textiles, construction, electronics and plastics; an EU industrial strategy to address the twin challenge of green and digital transformation, and new sectoral sustainable strategies for chemicals, finance, mobility and energy.

Passerelle together with its global partner, AmpliaGroup, has created a blog series on the EGD and the opportunities it creates for sustainable industries. Subsequent blogs will focus on specific implications of the EGD in the energy, food and environment sectors.

2 Digital Package

On 19th February 2020, the European Commission (EC) set out its strategy for ‘Shaping Europe’s Digital Future’ in ways that are that are fair, democratic, open and sustainable. The package of three documents sets out an overall vision, and separate strategies for AI and Data (see below). A whole raft of actions is planned: a review of Competition rules for the digital age; a new Digital Services Act for online platforms that will also address labour conditions; a Communication on business taxation including digital tax and new digital finance measures, among them a legislative proposal on crypto-assets.

3 AI and Data strategies: Commission launches consultation

As part of its overall Digital Package (see above), the EC put forward its vision for future regulation of AI and data. The AI White Paper sets out options for future regulation that seeks to balance development of AI with respect for European values and fundamental rights. Legislative proposals on safety, liability, fundamental rights and data will follow. The Communication on a European Data Strategy, published at the same time, aims to create a regulatory framework for data governance, access and reuse. This will also incorporate sectoral acts to build European data spaces, for instance in manufacturing, mobility and health. Both papers are now open for public consultation.

AI and sustainable finance are also priority topics for the European Retail Financial Forum(ERFF), managed by Passerelle. A first dialogue with EU consumer representatives, on 30th January, addressed issues such as: a level playing field for all financial services providers including Big Tech; data ownership and consent; as well as challenges to trust and privacy. A technical workshop with a wider group of stakeholders including the European Commission, is planned for 30th March 2020. For more information please contact us: info@erff.eu

4 Anti-Money Laundering: consultation on future EU legal framework

The Commission has outlined its ideas for updating the existing EU regulatory framework to combat money laundering and terrorist financing. Published on the 12th February, the roadmap identifies a number of deficiencies in the current system including inadequate application of EU AML rules by lawyers and accountants, and deficient supervision by national supervisors. In addition, the development of new technologies has opened new ways for criminals to launder money. Comments are invited by 11th March, following which the Commission will present a Communication setting out options for an enhanced EU AML/CFT legal framework.

5 Business & Human Rights: EU push for regulation

Political momentum is growing in Europe for a stronger mechanism to apply the UN Guiding Principles on Business & Human Rights (BHR). In December 2019, the outgoing Finnish Presidency of the EU Council published an Agenda for Action on BHR addressed to the new EU Parliament and Commission. The EU Fundamental Rights Agency is also active on this topic and has published a focus paper on business-related human rights abuses in the EU and available remedies. To help in the formulation of future EU policy, the European Commission is awaiting the results of studies on due diligence requirements in the supply chain and on directors’ duties & sustainable corporate governance.
 
Meanwhile the European Justice Stakeholders Forum (EJSF), managed by Passerelle, is considering BHR as the focus theme for its annual plenary in November this year. For more information, please contact us: info@ejsf.eu.

European Justice Stakeholders Forum news

Marking the 10th anniversary of the entry into force of the EU Charter of Fundamental Rights, the 4th EJSF annual plenary, on 19th November 2019, focused on ‘Rights under threat – how can the EU Fundamental Rights Charter work better for citizens?’  The event was co-hosted with the EU Fundamental Rights Agency (FRA) and took place as usual at the European Economic & Social Committee (EESC) in Brussels.

Chair Arno Metzler, President of the EESC Diversity Group, and senior speakers from the FRA, the Finnish Presidency of the EU Council, the European Parliament, the European Data Protection Supervisor, the European Court of Justice and the legal profession addressed many of the challenges to rule of law and democracy facing citizens. These range from fake news and manipulation of the electorate to rights in conflict such as the right to privacy versus the right to information, the interplay between human rights and competition law, and the growing case law of the European Courts to address these challenges.

The EC’s Work Programme 2020 foresees publication of a new Strategy for the Implementation of the Charter of Fundamental Rights in Q42020. The Strategy will focus on awareness raising, at national level, of citizens’ rights contained in the Charter.

The European Justice Stakeholders Forum (EJSF) is a high level platform for funded projects, events and campaigns between the legal profession and the EU law and policy makers on major challenges facing the justice sector, the legal profession and the rule of law.