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Semiconductors (or chips) are the engines of the digital transition. Their production relies on complex and vulnerable global supply chains. Against the backdrop of global chip shortages, of a global 'subsidy race' in the world's main producing regions, and of a renewed EU industrial policy, in February 2022 the Commission presented a proposal for an EU chips act aimed at reinforcing the whole EU chips value chain. The chips act is based on a three-pillar structure: pillar 1 aims to bolster large-scale ...

The proposed European chips act, presented by the European Commission in February 2022, aims to mobilise €43 billion in 'policy-driven investment' for the EU's semiconductor sector by 2030. The Commission expects long-term private investment to exceed this. The plan serves to enable immediate EU coordination against supply disruptions, strengthen and scale up production and innovation throughout the EU semiconductor value chain, and further enhance the Union's technological leadership, practical ...

On 23 February 2022, the European Commission (EC) published its proposal for a corporate sustainability due diligence directive. This In-depth Analysis for the European Parliament Sub-Committee on Human Rights (DROI) initially presents the EC proposal and its main features, contextualising these against broader European and international developments in business and human rights regulations. It then undertakes an in-depth comparative analysis of the EC’s 2022 draft Directive against (i) the position ...

There is a general perception in Western countries that the role of values as a foreign policy driver is currently on the decline. This study in the series ‘global trends in external policies’ seeks to contribute to the debate by investigating what is meant by ‘values’, whether their importance is on the wane and, if so, how this manifests itself, and how the European Union (EU) can respond to these trends. The broad concept of values has therefore been split into five categories. Socio-cultural ...

Batteries are critical to the EU's clean energy transition. In December 2020, the European Commission tabled a proposal to modernise the regulatory framework for batteries and secure the sustainability and competitiveness of EU battery value chains. The proposed new rules cover batteries' full lifecycle, from design to disposal. During its March I plenary session, Parliament is expected to debate and vote on the report on the proposal adopted by the Committee on the Environment, Public Health and ...

In recent years, the US has taken a range of steps to strengthen US legislation and enforcement practice from a human rights, trade and foreign policy perspective in the fight against the widespread use of forced labour in the increasingly complex global supply chains of the 21st century. A prominent example is the Uyghur Forced Labour Prevention Act of 2021. It bans imports from the Xinjiang Uyghur Autonomous Region (XUAR) in the north-west of China, except where importers can rebut the presumption ...

The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

The COVID-19 crisis has had a substantial impact on the EU27 economy and triggered unprecedented policy responses across Europe and the globe. With evidence on the effects on the EU industry manifested until the beginning of 2021, this report aims to address the following key issues: (1) impact of COVID-19 on the EU economy as a whole and across sectors; (2) impact on strategic value chains; and (3) necessary recovery measures to meet the needs of the EU industry. This document was provided by the ...

Against the background of supply shortages with respect to medical products during the COVID-19 pandemic, and the shift in the international order towards geopolitical rivalry between the US and China, reshoring of production has become a topical issue in the recent EU policy debate. The study discusses economic and political justifications for reshoring with respect to security of supply concerns and the debate on the EU’s strategic autonomy. With reshoring pre-COVID-19 having remained an empirical ...

Article 107(3)(b) of the Treaty on the Functioning of the European Union provides for the possibility of approving state aid for 'important projects of common European interest' (IPCEIs). These provisions have been used very rarely until recently. A specific framework enabling the creation of IPCEIs, originally only in the areas of research, development and innovation, and environmental protection has been in place for 15 years, yet only four such projects have been notified to and assessed by the ...