9. The Policy Watch

The Policy Watch is a weekly update which aims to provide concise insights into the current policy landscape. Tailored for our members and individuals interested in international affairs, this update offers a brief yet comprehensive summary of key developments affecting policy decisions and political trends in the UK, Sweden, and the EU.

GOVERNMENT CONSIDERS LIMITED ARMS SALES IF ISRAEL GOES THROUGH WITH ITS RAFAH PLANS

According to sources familiar with the matter, the UK government is contemplating limiting certain arms exports to Israel in the event of an offensive on the Palestinian city of Rafah or if aid trucks are obstructed from entering Gaza.

UK officials, speaking anonymously about internal assessments, mentioned that further escalation of Israel’s military activities in Gaza without sufficient efforts to safeguard civilians could potentially violate international humanitarian law, depending on the conduct of the operation.

REDUCED ENERGY PRICE CAP FOR Q2 2024

The UK Office of Gas and Electricity Markets (Ofgem) announced on Friday that the energy price cap will be reduced by 12.3 % in Q2 compared to Q1 levels. The reduced price cap, which sets the maximum rate per unit charged to households, will lead to the lowest energy prices since Russia’s invasion of Ukraine in February 2022.

UK AND EU FORGE POST-BREXIT DEAL TO COMBAT ILLEGAL MIGRATION

The EU and UK have reached a post-Brexit agreement regarding tackling illegal migration, as announced by the UK Home Office, which has reached a new working arrangement with Frontex, the European Border and Coast Guard Agency. The agreement focuses on cooperation in information sharing, intelligence, training, and research and development. Notably, it excludes a bilateral returns agreement, meaning the UK won’t be obligated to accept asylum seekers from EU member countries.

This move aligns with British Prime Minister Rishi Sunak’s efforts to reduce small boat crossings into the UK, with both parties stressing the necessity of shared solutions to combat organised crime and people smuggling.

SNP LOBBIES THE EU FOR SCOTTISH EU MEMBERSHIP

According to The Telegraph, the Scottish National Party (SNP) has been using taxpayer money to fund a ‘mini-embassy’ in Brussels. Through this mini-embassy, the SNP has lobbied for Scottish EU membership by distributing plans to EU members outlining the reasons for admitting an independent Scotland.

SWEDEN TO JOIN NATO AS HUNGARY RATIFIES SWEDISH ACCESSION

651 days after Sweden officially applied for NATO membership, Hungary, the final hurdle, ratified Sweden’s accession to the defence alliance. The vote in the Hungarian Parliament was 188 in favour and 6 against, and was enabled by Swedish PM Ulf Kristersson’s meeting with his Hungarian peer, Viktor Orbán, in Budapest on Friday.

“Sweden is leaving 200 years of neutrality and military non-alignment behind […] We are joining NATO in order to defend what we are and everything we believe in even better. We are defending our freedom, our democracy and our values, together with others.” PM Kristersson stated after the vote.

GOVERNMENT PRESENT ITS LARGEST-EVER MILITARY PACKAGE TO UKRAINE

On February 20th, the Government unveiled its latest military support package for Ukraine, marking the 15th and most extensive aid initiative since Russia’s full-scale invasion began in February 2022. The package is valued at SEK 7.1 billion and encompasses various resources, including Combat Boat 90, smaller fast motorboats (G-boats), underwater weapons, artillery ammunition, air defence systems, anti-tank missiles, and medical supplies. Furthermore, the aid includes financial support for bilateral and multilateral projects or funds and economic assistance for Ukraine to procure additional units of Combat Vehicle 90.

MUNICIPALITIES RISK BILLION SEK COSTS DUE TO NEW EU WASTEWATER TREATMENT LAWS

Due to new EU regulations on wastewater treatment, Sweden and Finland risk losing their previous exemption from such EU laws due to the natural nitrogen purification process in their lakes. With the risk of losing this exemption, the risk of dramatically increased wastewater treatment costs for Swedish municipalities and, thus, more expensive water and sewage costs for households.

The Swedish Member of the European Parliament, Heléne Fritzon (S), criticised the Minister for Climate and the Environment, Romina Pourmokhtari (L), for failing to protect Swedish interests during negotiations in the Council. Minister Pourmokthari replied that the Government did its best in the negotiations.

SWEDISH MILITARY PERSONNEL TO BE SENT TO THE RED SEA

The Government has announced that it will send four Staff Officers to the Red Sea to participate in the EU maritime Operation Aspides, which will cooperate with the US-led Operation Prosperity Guard. This follows the Government’s previous statements on its plan to contribute with the military to the EU and US missions in the area.

Minister for Defence Pål Jonson (M) further states that the Government does not exclude the possibility of contributing armed forces to the EU mission in the future. However, he also notes that Sweden will not directly participate in the US Operation.

INQUIRY ON ALLOWING MINING OF URANIUM IN SWEDEN

The ruling parties (L, KD, M) and the Sweden Democrats (the parties known as tidöpartierna) have appointed an inquiry to allow the mining of uranium once again on Swedish soil, which was banned in 2018. Sweden is believed to possess a quarter of Europe’s known uranium reserves, yet there have been no operational uranium mines in Sweden since the 1960s.

The main aim of the inquiry, as stated by Minister for Climate and the Environment Romina Pourmokhtari (L), is not to initiate new uranium mines in Sweden, although she does not dismiss the possibility entirely. Instead, the primary objective is to enable existing mining operations to consider uranium as a valuable by-product rather than waste to attract more businesses to mine for rare earth metals essential for the green transition.

SWEDEN DISAGREES WITH THE PROVISIONAL AGREEMENT ON THE PLATFORM WORK DIRECTIVE

Following the provisional agreement in the Trilouge, the proposed Platform Work Directive was set to be formally endorsed by the Council of the EU and the European Parliament. However, due to disagreements among the member states, there was a ‘rapid no’ in the Council.

According to Tidningen Näringslivet, Sweden, France, and Germany are not satisfied with the definitions on who is to be considered employed or not in the ‘gig economy’ and believe more work needs to be done. Due to the disagreements in the Council, the final endorsement may have to wait until after the upcoming EU elections in June.

EU FACES URGENT FUNDING CHALLENGE, FORMER ECB PRESIDENT DRAGHI WARNS

Former President of the European Central Bank (ECB) Mario Draghi stated there is an urgent need for investment in the EU, particularly in green and digital transitions. To deal with the deep challenges facing the bloc, Draghi states that an estimate of €500 billion yearly is required. Despite shared goals to bolster EU competitiveness through measures like lowering energy prices and reducing regulations, divisions arise regarding the use of public funds, prompting Draghi to call for decisive action and explore alternative funding avenues such as private savings and common debt proposals.

Draghi underscores the weakening foundation of the EU, noting that the traditional pillars of cheap energy from Russia, exports from China, and reliance on the U.S. defence apparatus are no longer as dependable as in the past.

VON DER LEYEN EYES RIGHT-WING ALLIES AMID POTENTIAL SHIFT IN THE PARLIAMENT

Ursula von der Leyen, the President of the European Commission, hinted at the possibility of collaborating with right-wing politicians from the European Conservatives and Reformists (ECR), provided they align with her stance on democracy, values, rule of law, and support for Ukraine. As she seeks a second term leading the EU’s executive arm, von der Leyen faces the challenge of gaining approval from a potentially right-leaning European Parliament, where a surge in right-wing support is forecasted for the upcoming elections in June. She has already expressed a shift in focus for her potential second term, from ambitious climate policies to a new emphasis on security, industry and making climate ambitions more palatable to big business.

While von der Leyen’s coalition-building strategy remains cautious and contingent on shared values, potential alliances with groups like the ECR could impact the political landscape of the European Parliament.

PROVISIONAL DEAL ON CARBON REMOVAL CERTIFICATION

The Council and European Parliament negotiators have reached a provisional agreement on establishing the EU’s first certification framework for permanent carbon removals, carbon farming, and carbon storage in products. This voluntary framework aims to accelerate high-quality carbon removal and soil emission reduction activities in the EU, aligning with the bloc’s goal of achieving climate neutrality by 2050.

The agreement, pending formal adoption, extends the proposal’s scope to include soil emission reductions, sets certification criteria, and outlines monitoring obligations and liability rules for operators, aiming to ensure transparency and effectiveness in combating climate change.

COMMISSION UNVEILS DIGITAL CONNECTIVITY PACKAGE TO BOOST INNOVATION AND SECURITY

The European Commission has revealed a comprehensive plan aimed at enhancing the innovation, security, and resilience of digital infrastructures across Europe. This package, which includes a White Paper and a Recommendation, seeks to address challenges in connectivity network rollout, improve the security of submarine cables, and foster collaboration among European innovators.

Additionally, the Commission has launched a public consultation to gather feedback on proposed scenarios, marking a significant step towards shaping future EU digital policy.

TRILOUGE AGREES ON AGGRESSIVE AIR QUALITY STANDARDS IN BID FOR ZERO POLLUTION BY 2050

The EU Council presidency and European Parliament have reached a provisional agreement to establish stringent air quality standards aimed at achieving zero pollution by 2050, aligning with WHO recommendations. The agreement includes reducing annual limit values for major pollutants like PM2.5 and NO2 and grants member states the possibility to request postponement of attainment deadlines under specific conditions. Additionally, the directive emphasises the establishment of air quality roadmaps, plans, and short-term action plans, alongside provisions for access to justice and compensation for citizens affected by air pollution violations.

EU OPENS AN AI OFFICE

As a part of the AI Act, which is expected to come into force in spring, the EU opened its AI Office on Wednesday. The European AI Office, established within the European Commission, will be a central hub for AI expertise in the EU. Its primary objectives include implementing the AI Act and promoting the development of trustworthy AI. The office will collaborate with Member States and experts to address various aspects of AI, aiming for a balanced understanding of its potential benefits and risks.