The European Commission is seeking emergency powers to force companies to manufacture key products and stockpile goods in the event of a crisis or face fines, according to an EU document seen by Reuters on Friday..
The proposed single market emergency instrument, due to be presented on September 13, comes in response to supply bottlenecks caused by the COVID-19 pandemic and Russia’s invasion of Ukraine. Russia describes its actions in Ukraine as a “special military operation.”
It also aims to deter foreign countries with similar powers from taking such action without informing the 27-nation bloc.
The move is opposed by some EU countries concerned about a power grab by the EU executive, while critics say it betrays Chinese-style state capitalism.
The Commission will need to discuss details with EU countries and EU lawmakers before the proposal becomes law in a process that will take months.
If passed, the document said, the Commission could ask EU countries to reorganize supply chains and increase supplies of crisis-related goods as quickly as possible.
Businesses providing incorrect or misleading information can face fines of up to €300,000 (US$300,540) while companies that do not comply with the key product prioritization order can face daily periodic fines of 1.5% of average daily turnover. .
What a shout!
Emergency powers are for the European Union only. It is alleged that other countries will have to inform the EU first.
The European Commission said it would not comment on the leaked document, but what we are talking about is the conduct of wartime powers without war.
Is this an item that requires unanimous EU approval?
If so, the proposal will never take off. But if the treaty allows for “emergency” rules, who knows what those nannies could do.
Daniel Lacalle’s correct reaction was: “Be holy, so afraid.“
At a minimum, the euro will collapse if this passes.
Question of the day
Russia just announced a few hours ago that it will shut down gas until sanctions are lifted (Financial Times), and it’s not capping the gas.
Pain is mostly self-made
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The imperfection is mostly self-made. The United States and the European Union have launched an economic war with Russia and are facing an energy crisis as a result.
And every time the EU ramps up pressure, Russia retaliates in kind.
please note Putin retaliates by shutting down natural gas after G7 announces oil price ceiling. But it’s not just natural gas.
Russia and Ukraine exports
- Russia and Ukraine are major exporters of C4F6 and neon gas. Ukraine produces about 25% of the neon used in global semiconductor production.
- Russia produces about 12 percent of the platinum and 40 percent of the palladium used in automobile catalytic converters.
- Russia produces 3.9 metric tons of aluminum (6% of global supply). Russia and Ukraine together account for about 10% of global steel exports, according to SteelMint.
- Russia is the third largest oil producer after the United States and Saudi Arabia, exporting nearly 5 million barrels per day of crude oil in 2020, according to the US Energy Information Administration.
- Russia produces about 12 percent of the world’s oil and 17 percent of its natural gas, according to JPMorgan estimates.
- Russia and Ukraine account for about a third of global wheat exports.
- Russia supplies about half of Airbus’s titanium needs, while a US industrial source said Russia supplied a third of Boeing’s needs.
- While Russia accounts for 5% of global nickel production, it provides about 20% of the world’s high-grade nickel, said Kasper Rawls, chief data officer at the specialist consultancy Benchmark Mineral Intelligence (BMI).
For discussion, please see US sanctions policy pushes China to join Russia’s loving arms
Russia’s global response has a big beneficiary, China.
If you thought the EU would be out of the woods if this winter and natural gas survived, think again. Where will the EU get titanium and nickel from?
The fact that the EU is proposing this measure is an admission that the concerns are not just about natural gas.
This post originated in MishTalk.Com.
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