On December 1 this year, a meeting of the EU Ministerial Council for Competitiveness took place in Brussels to discuss internal market and industrial issues, as well as decisions on forwarding a number of new laws and regulations for further discussions with the European Parliament were adopted. Latvia’s opinion at the meeting was expressed by the parliamentary secretary of the Ministry of Economics Andris Čuda.
During the meeting, the ministers of the Member States approved a general approach to proposals for a new Regulation establishing a framework of measures to strengthen the Europe’s semiconductor ecosystem, or the Chips Act. It provides for a broad package of measures and the mobilisation of more than EUR 43 billion of public and private investment. Semiconductor chips are a central element of the digital economy used in a variety of digital products we use on a daily basis, as well as is an essential driver for future technological advancements. Europe has experienced supply disruptions over the past year, causing shortages in several sectors of the economy.
The proposals for the Regulation will improve security, resilience and address the shortage of semiconductors in the EU and strengthen Europe’s technological leadership. The Chips Act will help ensure that Europe has the tools, skills and technological capabilities necessary to become a leader in this sector, not only in research and technology, but also in the development, production and packaging of advanced chips.
Latvia supports the approval of proposals for the Regulation and believes that the adoption of the Chips Act can contribute to the faster development of the Latvian semiconductor ecosystem, providing both the necessary legal framework and financial support. We also support the intention within the proposal to develop a semiconductor design, technology piloting and skills improvement activities through the creation in EU Member States of competence centres specialised in the field of semiconductors. Moreover, Latvia has already taken the next step by signing a Memorandum of Cooperation on the Development of a Chip Manufacturing Facility between public administration institutions, scientific institutions and enterprises in the ICT sector on November 30 this year. More details on the memorandum are provided here.
During the meeting ministers also approved the general approach to a new Regulation on geographical indication protection for craft and industrial products, which provides for the creation of a single EU register for such indications. This will improve the protection of certain products within the EU, including against counterfeiting. Currently, an equivalent system exists only for agricultural and food products. Latvia generally supports the proposals for the Regulation, while indicating that the current legal framework in Latvia protects geographical indications regardless of whether they are registered or not.
The draft Directive on corporate sustainability due diligence, which provides for measures for businesses to identify actual or potential adverse effects on human rights and the environment, has also been approved for further forwarding. The purpose of the Directive is to promote sustainable and responsible action of large enterprises.
Latvia already has several companies acting in accordance with international sustainability standards, but with the entry into force of the proposal for the Directive these obligations would become a standard for other enterprises. Latvia broadly supports the proposal for the Directive and its purposes, as well as supports the position that sustainability of corporate governance and management systems needs to be strengthened. Attention should also be paid to ensuring that enterprises mitigate their harmful effects on human rights and the environment, and that enterprises take into account the interests of stakeholders and the risks associated with stakeholders.
At the meeting the ministers also confirmed the Council’s call on the European Commission and the Member States to develop a European Tourism Agenda for 2030-2050 in close cooperation. On the other hand, the Czech Presidency reported at the meeting on the progress of the Regulation establishing a framework for setting ecodesign requirements for sustainable products, as well as on proposals for a Directive to strengthen consumer awareness and rights when purchasing goods.