Outcomes of the March European Council

GC expert panel with our team in Brussels looking at the March European Council summit in 2021.

Highlights from the discussion:

• The European Council held on March 25th was a significant meeting for the range of issues it covered, yet it also brought to light the limitations of the videoconference format. The statement issues following the informal summit showed continued ambiguity on industrial policy, vaccines, and foreign policy. The topics on the agenda were driven mainly by issues playing in Brussels, with a less prominent role for the Portuguese presidency besides a reference to the upcoming Social Summit in May.
   
• The European Council took place against the backdrop of a dispute over vaccines between the EU and the UK, at a time when an ongoing vaccine shortage has put much political pressure on EU leaders. The statement on vaccines was ambiguous, emphasising both the importance of vaccine transparency and backing the use of export authorisation while also recognising the importance of global vaccine value chains. While this shortage might only be temporary, the row between the EU and the UK has revealed a lack of trust after Brexit, and that much depends on the ongoing talks to clear the air.
   
• On the digital green certificate, disagreements between member states remain. The online format did not allow countries to be as vocal on they would have been during an in-person summit. Leaders agreed to take forward the technical work as a matter of urgency. A group of member states led by Greece hopes for the certificate to be operational by the summer while more sceptical countries are calling for more clarity on whether vaccinated people can spread the virus. While the commission hopes for a quick adoption by June, divisions between EU capitals might cause delays.
   
• The debate on what European strategic autonomy means and how it can be used in practice will continue in the future, but it is also slowly beginning to crystallise in specific areas. The European Council statement referred to a broadened European policy toolbox, something the European Commission has been working on, such as new trade defence tools. Specific references to regulatory frameworks for AI and sectoral data spaces might indicate that greater EU autonomy is likely to be pursued in sensitive sectors, with a more relaxed approach in less politicised areas.