Tag: Business and competition

March 1, 2023

No silver bullet: Ensuring the right packaging solutions for Europe

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When most people think of McDonald’s they likely think of quality food, good value and consistently reliable convenient service. But I hope they also think about our values.

At McDonald’s, we care deeply about our impact on the world. Our purpose is to feed and foster local communities. We are always striving to use our influence and scale to make a positive impact on the planet and in the communities we serve across Europe and globally. We are on a journey to help implement and accelerate solutions to keep waste out of nature and valuable materials in use.

Our purpose is to feed and foster local communities.

During my trip to Europe, I’ve seen some of these solutions in action. While in Brussels I had the opportunity to visit one of our restaurants at the forefront of advancing our circularity goals. McDonald’s is the first major partner of a pioneering initiative ‘The Cup Collective’. It is a great project by Stora Enso and Huhtamaki to collect cardboard beverage and ice cream cups in and around our restaurants and recycle them on an industrial scale into paper fiber. At our busy  restaurant in Brussels-North station, I saw the initiative firsthand. This is a fantastic example of several stakeholders working together to solve a problem through their expertise and innovation.

I know policymakers across the EU are trying to solve many of the greatest challenges we face today, including Europe’s growing packaging waste problem, and we at McDonald’s fully support this, as the example above demonstrates. The problem is, history itself is littered with examples of the unintended consequences of well-meaning policies and laws. I believe the current Packaging and Packaging Waste proposal by the EU is one such regulation. By focusing solely on reusable packaging, we at McDonald’s and many of our partners and competitors in the informal dining out sector believe that Packaging and Packaging Waste Regulation (PPWR) will actually be counterproductive to the overall goals of the Green Deal. And we support the goals of the Green Deal, which is why this concerns us.

The informal eating-out sector is particularly complex and is not well understood. We feel the impact study the EU commissioned ahead of the PPWR proposal did not necessarily reflect that as much as it could have. We want such important decisions to be based on science, facts, and evidence, which is why we commissioned a report with the global management consultancy Kearney to assess environmental, economic, hygiene and affordability impacts of various packaging solutions. As a result of this, we firmly believe the proposal will be damaging not only for the environment, but also for the economy, food safety and for consumers.

Of course, the idea of reusing something over and over again as opposed to only once seems like the obvious solution — but it’s more complicated than that. For reuse models to have a positive impact on the environment, consumers need to return the reusables. A reusable cup needs to be returned and reused 50 to 100 times — whether for takeaway or dine-in — to make it environmentally preferable to a single-use paper cup.

Reusables by their very nature also need to be washed every time they’re used. For an industry like ours, serving millions of customers every day, that requires significant energy and water. Europe’s water infrastructure is already under stress, and the Kearney study shows reusable packaging requirements for dine-in restaurants would increase water use — and could require up to 4 billion liters of additional water each year. Washing also requires more energy resulting in increased greenhouse emissions. The study shows that a shift to 100 percent reusable packaging by 2030 would increase greenhouse emissions by up to 50 percent for dine-in and up to 260 percent for takeaway. They also require specialist washing to ensure they meet hygiene standards.

The study shows that a shift to 100 percent reusable packaging by 2030 would increase greenhouse emissions.

When it comes to plastics we are particularly concerned. McDonald’s has made huge progress when it comes to reducing plastic in our supply chain and restaurants. In the European Union, more than 90 percent of our packaging is locally sourced, primarily from European paper packaging suppliers. We are shifting packaging materials to more sustainable alternatives to ensure easier recovery and recycling. 92.8 percent (by weight) of McDonald’s food packaging in Europe is wood fiber and 99.4 percent of that fiber packaging comes from recycled or certified sources.

Worryingly though, the study we commissioned says that reuse models will lead to a sharp increase in plastic materials in Europe.Reuse targets proposed in the PPWR will create four times the amount of plastic packaging waste for dine-in, and 16 times for takeaway. That’s a lot more plastic instead of recyclable paper and cardboard and is the opposite of what the EU wants to achieve.

So, what should be done? Given that Kearney’s data shows recyclable, fiber-based packaging has the greater potential to benefit the environment, economy, food safety and consumers, we believe the EU should pause and conduct a full impact study before moving ahead. The European Commission’s current impact assessment lacks depth and does not consider economic and food safety aspects. Member countries should not unilaterally introduce legislation before this has been assessed to avoid fragmentation of the single market.

We believe the EU should pause and conduct a full impact study before moving ahead.

In dine in and takeaway, we are looking for equivalence of treatment between recycled and recyclable (paper based) single use packaging and reusable tableware. Any legislation should take into account the specific needs of complex business sectors, and the right packaging solutions.

A rush to a solution for a complicated situation will only make the problem worse. I hope that the report McDonald’s commissioned and launched with Kearney will stimulate the policy debate about the mix of solutions needed. Europe has a proud history of collaboration and pragmatism when it comes to solving important problems and challenges, and I am confident we can draw on that when it comes to this particular issue — because there really is no silver bullet when it comes to solving Europe’s packaging problem.

www.nosilverbullet.eu



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February 6, 2023

Heads roll in Ukraine graft purge, but defense chief Reznikov rejects rumors he’s out

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KYIV — Heads are rolling in President Volodymyr Zelenskyy’s expanding purge against corruption in Ukraine, but Defense Minister Oleksii Reznikov is denying rumors that he’s destined for the exit — a move that would be viewed as a considerable setback for Kyiv in the middle of its war with Russia.

Two weeks ago, Ukraine was shaken by two major corruption scandals centered on government procurement of military catering services and electrical generators. Rather than sweeping the suspect deals under the carpet, Zelenskyy launched a major crackdown, in a bid to show allies in the U.S. and EU that Ukraine is making a clean break from the past.

Tetiana Shevchuk, a lawyer with the Anti-Corruption Action Center, a watchdog, said Zelenskyy needed to draw a line in the sand: “Because even when the war is going on, people saw that officials are conducting ‘business as usual’. They saw that corrupt schemes have not disappeared, and it made people really angry. Therefore, the president had to show he is on the side of fighting against corruption.”

Since the initial revelations, the graft investigations have snowballed, with enforcers uncovering further possible profiteering in the defense ministry. Two former deputy defense ministers have been placed in pre-trial detention.

Given the focus on his ministry in the scandal, speculation by journalists and politicians has swirled that Reznikov — one of the best-known faces of Ukraine’s war against the Russian invaders — is set to be fired or at least transferred to another ministry.

But losing such a top name would be a big blow. At a press conference on Sunday, Reznikov dismissed the claims about his imminent departure as rumors and said that only Zelenskyy was in a position to remove him. Although Reznikov admits the anti-corruption department at his ministry failed and needs reform, he said he was still focused on ensuring that Ukraine’s soldiers were properly equipped.

“Our key priority now is the stable supply of Ukrainian soldiers with all they need,” Reznikov said during the press conference.

Despite his insistence that any decision on his removal could only come from Zelenskyy, Reznikov did still caution that he was ready to depart — and that no officials would serve in their posts forever.

The speculation about Reznikov’s fate picked up on Sunday when David Arakhamia, head of Zelenskyy’s affiliated Servant of the People party faction in the parliament, published a statement saying Reznikov would soon be transferred to the position of minister for strategic industries to strengthen military-industrial cooperation. Major General Kyrylo Budanov, current head of the Military Intelligence Directorate, would head the Ministry of Defense, Arakhamia said.

However, on Monday, Arakhamia seemed to row back somewhat, and claimed no reshuffle in the defense ministry was planned for this week. Mariana Bezuhla, deputy head of the national security and defense committee in the Ukrainian parliament, also said that the parliament had decided to postpone any staff decisions in the defense ministry as they consider the broader risks for national defense ahead of another meeting of defense officials at the U.S. Ramstein air base in Germany and before an expected upcoming Russian offensive.

Zelenskyy steps in

The defense ministry is not the only department to be swept up in the investigations. Over the first days of February, the Security Service of Ukraine, State Investigation Bureau, and Economic Security Bureau conducted dozens of searches at the customs service, the tax service and in local administrations. Officials of several different levels were dismissed en masse for sabotaging their service during war and hurting the state.

“Unfortunately, in some areas, the only way to guarantee legitimacy is by changing leaders along with the implementation of institutional changes,” Zelenskyy said in a video address on February 1. “I see from the reaction in society that people support the actions of law enforcement officers. So, the movement towards justice can be felt. And justice will be ensured.”

Yuriy Nikolov, founder of the Nashi Groshi (Our Money) investigative website, who broke the story about the defense ministry’s alleged profiteering on food and catering services for soldiers in January, said the dismissals and continued searches were first steps in the right direction.

“Now let’s wait for the court sentences. It all looked like a well-coordinated show,” Nikolov told POLITICO.  “At the same time, it is good that the government prefers this kind of demonstrative fight against corruption, instead of covering up corrupt officials.”

Still, even though Reznikov declared zero tolerance for corruption and admitted that defense procurement during war needs reform, he has still refused to publish army price contract data on food and non-secret equipment, Nikolov said.

During his press conference, Reznikov insisted he could not reveal sensitive military information during a period of martial law as it could be used by the enemy. “We have to maintain the balance of public control and keep certain procurement procedures secret,” he said.

Two deputies down

Alleged corruption in secret procurement deals has, however, already cost him two of his deputies.

Deputy Defense Minister Vyacheslav Shapovalov, who oversaw logistical support for the army, tendered his resignation in January following a scandal involving the purchase of military rations at inflated prices. In his resignation letter, Shapovalov asked to be dismissed in order “not to pose a threat to the stable supply of the Armed Forces of Ukraine as a result of a campaign of accusations related to the purchase of food services.”

Another of Reznikov’s former deputies, Bohdan Khmelnytsky, who managed defense procurement in the ministry until December, was also arrested over accusations he lobbied for a purchase of 3,000 poor-quality bulletproof vests for the army worth more than 100 million hryvnias (€2.5 million), the Security Service of Ukraine reported.  If found guilty he faces up to eight years in prison. The director of the company that supplied the bulletproof vests under the illicit contract has been identified as a suspect by the authorities and now faces up to 12 years in prison if found guilty.

Both ex-officials can be released on bail.

Another unnamed defense ministry official, a non-staff adviser to the deputy defense minister of Ukraine, was also identified as a suspect in relation to the alleged embezzlement of 1.7 billion hryvnias (€43 million) from the defense budget, the General Prosecutors Office of Ukraine reported.  

When asked about corruption cases against former staffers, Reznikov stressed people had to be considered innocent until proven guilty.

Reputational risk

At the press conference on Sunday, Reznikov claimed that during his time in the defense ministry, he managed to reorganize it, introduced competition into food supplies and filled empty stocks.

However, the anti-corruption department of the ministry completely failed, he admitted. He argued the situation in the department was so unsatisfactory that the National Agency for the Prevention of Corruption gave him an order to conduct an official audit of employees. And it showed the department had to be reorganized.

“At a closed meeting with the watchdogs and investigative journalists I offered them to delegate people to the reloaded anti-corruption department. We also agreed to create a public anti-corruption council within the defense ministry,” Reznikov said.

Nikolov was one of the watchdogs attending the closed meeting. He said the minister did not bring any invoices or receipts for food products for the army, or any corrected contract prices to the meeting. Moreover, the minister called the demand to reveal the price of an egg or a potato “an idiocy” and said prices should not be published at all, Nikolov said in a statement. Overpriced eggs were one of the features of the inflated catering contracts that received particular public attention.

Reznikov instead suggested creating an advisory body with the public. He would also hold meetings, and working groups, and promised to provide invoices upon request, the journalist added.

“So far, it looks like the head of state, Zelenskyy, has lost patience with the antics of his staff, but some of his staff do not want to leave their comfort zone and are trying to leave some corruption options for themselves for the future,” Nikolov said.

Reznikov was not personally accused of any wrongdoing by law enforcement agencies.

But the minister acknowledged that there was reputational damage in relation to his team and communications. “This is a loss of reputation today, it must be recognized and learned from,” he said. At the same time, he believed he had nothing to be ashamed of: “My conscience is absolutely clear,” he said.



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January 27, 2023

Building Europe’s future, focusing on IT skills rather than degrees

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As the digital transformation of economy and society accelerates, the question of a just and inclusive transformation must be at the forefront of considerations for deciders in the public and private sector.

“The Digital Decade is about making digital technology work for people and businesses. It is about enabling everyone to have the skills to participate in the digital society. To be empowered. It is about empowering businesses. It is about the infrastructure that keeps us connected. It is about bringing government services closer to citizens. Europe’s digital transformation will give opportunities for everyone.” Margrethe Vestager, executive vice president for A Europe Fit for the Digital Age, July 2022.

The Digital Decade is about making digital technology work for people and businesses.

The European Union (EU) has grasped the urgency and importance of providing digital skills to citizens, declaring 2023 the European Year of Skills. Reaching the EU’s goal of 80 percent of Europeans with basic digital skills and 20 million ICT specialists by 2030 won’t happen in a snap. The opportunities here are immense: the World Economic Forum predicts 97 million new jobs related to technology. Many promise to be better jobs than the ones they will replace. Because skills in cybersecurity or the internet of things, for example, can lead to positions that offer opportunities for advancement and life-changing opportunities for people everywhere, including underprivileged or marginalized communities around the world.

The scale of the digital skills challenge and opportunity demands close collaboration with the tech industry, governments, and academia — to close the gap in technology skills that stood at 2 million unfilled tech jobs globally in 2022[1].

What’s more, those who have been displaced will in many cases be good candidates to upskill for the new roles. A high percentage of these jobs don’t necessarily require a high-level degree, for example. Many roles demand candidates have the right tech skills rather than degrees.

Accessibility and flexibility are key

If there is one glaring truth that surfaces from all my encounters throughout Europe it’s that for a training and upskilling program to work, learners must be empowered in ever more flexible ways, to learn where and when they want.

For a training and upskilling program to work, learners must be empowered in ever more flexible ways, to learn where and when they want.

A learner-centric approach is what will make a training program relevant to learners. I firmly believe that our focus on regularly offering new pathways and learning formats is one of the main reasons the Cisco Networking Academy has managed to empower over 17 million learners in 25 years.

Our new Skills For All offering, which proposes self-paced introductory and intermediary courses in cybersecurity, networking and data management, will continue to contribute to this success. It lowers the barriers to entry by allowing learners to dip their toes in the water on their own terms before deciding whether to take the plunge.

Jobs in IT can provide an accessible opportunity for people looking to change their lives and launch themselves into a new career. This is even more true for the underprivileged, underrepresented and underserved.

One obvious starting point is addressing the gender gap in tech. Historically, 26 percent of Networking Academy students over the past 25 years have been women. We’ve made strides forward, but we seek more to benefit from the wider perspective and fresh ideas that the strong inclusion brings of women in the IT sector. This flexibility, however, must be accompanied with a clear effort to remain accessible to as many stakeholders as possible. One of the secrets to the success of our program is the long-term collaboration with public-sector education, administrations, and even armed forces. A collaboration that rests on our focus on keeping our program free of charge and vendor agnostic, and on focusing on training learners in the skills required in the industry.

Reaching every sector with the right digital skills

The challenge we face is that the digital transformation in Europe is not exclusively the business of tech and IT. It impacts everything, from the average agricultural cooperative in Romania, Greece, France or Spain that needs to understand the impact that digital transformation can have on farming, to the local administrations needing to better protect the information of their citizens as increasing numbers of services digitize.

Each scenario requires skills-focused learning pathways so that learners can quickly and easily acquire the knowledge they need in a simplified format.

A responsibility to the future

Today, we are at a critical turning of the tide. I look forward to being able to touch down in any European city in 10 years and see the impact of the talent that we’ve nurtured and empowered. Talent that includes more women, minorities, people with disabilities, adult reskillers, school leavers… the list goes on.

Cisco stands ready to support Europe in its objectives to bring digital skills to more citizens to maximize the opportunity that technology offers, by developing the next generation of talent.

At Cisco, we feel we have a responsibility to make the digital transformation an inclusive one. And I’m incredibly excited to see how our incredible ecosystem of over 11,800 educational institutions and more than 29,000 instructors will strive to deliver on our goal of upskilling 25 million people in the next 10 years.

Cisco stands ready to support Europe in its objectives to bring digital skills to more citizens to maximize the opportunity that technology offers, by developing the next generation of talent who will push the capabilities of technology even further and to give people the skills to engage with technology more securely. Because when people are empowered to craft a more inclusive digital transformation journey, it becomes synonymous with a more prosperous society.

[1] https://technation.io/people-and-skills-report-2022/#key-statistics



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January 23, 2023

A plan for competitive, green and resilient industries

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We, Renew Europe, want our Union to fulfil its promise of prosperity and opportunities for our fellow Europeans. We have championed initiatives to make our continent freer, fairer and greener, but much more remains to be done.

We are convinced that Europe has what it takes to become the global industrial leader, especially in green and digital technologies. Yet it is faced with higher energy prices and lower levels of investment, which creates a double risk of internal and external fragmentation.

The Russian aggression against Ukraine has shown us that our European way of life cannot be taken for granted. While we stand unwaveringly at the side of our Ukrainian friends and commit to the rebuilding of their homeland, we also need to protect our freedom and prosperity.

That is why Europe needs an urgent and ambitious plan for a competitive, productive and innovative industry ‘made in Europe’. Our proposals below would translate into many more jobs, a faster green transition and increased geopolitical influence.

We must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.

1. Reforms to kick start the European economy: A European Clean Tech, Competitiveness and Innovation Act

While the EU can be proud of its single market, we must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.

  • In addition to the acceleration of the deployment of sustainable energy, we call on the Commission to propose a European Clean Tech, Competitiveness and Innovation Act, which would:
  • While the EU can be proud of its single market, we must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.
  • In addition to the acceleration of the deployment of sustainable energy, we call on the Commission to propose a European Clean Tech, Competitiveness and Innovation Act, which would:
  • Cut red tape and administrative burden, focusing on delivering solutions to our companies, particularly for SMEs and startups.
  • Adapt state aid rules for companies producing clean technologies and energies.
  • Introduce fast-track permitting for clean and renewable energies and for industrial projects of general European interest.
  • Streamline the process for important Projects of Common European Interest, with adequate administrative resources.
  • Guarantee EU-wide access to affordable energy for our industries.
  • Strengthen the existing instruments for a just transition of carbon-intensive industries, as they are key to fighting climate change.
  • Facilitate private financing by completing the Capital Markets Union to allow our SMEs and startups to scale up.
  • Set the right conditions to increase Europe’s global share of research and development spending and reach our own target at 3 percent of our GDP.
  • Build up the European Innovation Council to develop breakthrough technologies.
  • Deliver a highly skilled workforce for our industry.
  • Deepen the single market by fully enforcing existing legislation and further harmonization of standards in the EU as well as with third countries.

We need to reduce more rapidly our economic dependencies from third countries, which make our companies and our economies vulnerable.

2. Investments supporting our industry to thrive: A European Sovereignty Fund and Reform Act

While the EU addresses, with unity, all the consequences of the war in Ukraine, we need to reduce more rapidly our economic dependencies from third countries, which make our companies and our economies vulnerable.

In addition to the new framework for raw materials, we call on the Commission to:

  • Create a European Sovereignty Fund, by revising the MFF and mobilizing private investments, to increase European strategic investments across the Union, such as the production on our soil of critical inputs, technologies and goods, which are key to the green and digital transitions.
  • Carry out a sovereignty test to screen European legislation and funds, both existing and upcoming, to demonstrate that they neither harm the EU’s capacity to act autonomously, nor create new dependencies.
  • Modernize the Stability and Growth Pact to incentivize structural reforms and national investments with real added value for our open strategic autonomy, in areas like infrastructure, resources and technologies.

While the EU has to resist protectionist measures, we will always want to promote an open economy with fair competition.

3. Initiatives creating a global level playing field:

A New Generation of Partnerships in the World Act

While the EU has to resist protectionist measures, we will always want to promote an open economy with fair competition.

  • In addition to all the existing reforms made during this mandate, notably on public procurement and foreign subsidies, we call on the Commission to:
  • Make full use of the EU’s economic and political power regarding current trade partners to ensure we get the most for our industry exports and imports, while promoting our values and standards, not least human rights and the Green Deal.
  • Promote new economic partnerships with democratic countries so we can face climate change and all the consequences of the Russian aggression together.
  • Ensure the diversification of supply chains to Europe, particularly regarding critical technologies and raw materials, based on a detailed assessment of current dependencies and alternative sources.
  • Use all our trade policy instruments to promote our prosperity and preserve the single market from distortions from third countries.
  • Take recourse to dispute settlement mechanisms available at WTO level whenever necessary to promote rules-based trade.
  • Adopt a plan to increase our continent’s attractiveness for business projects.
  • Create a truly European screening of the most sensitive foreign investments.
  • We, Renew Europe, believe that taken together these initiatives will foster the development of a competitive and innovative European industry fit for the 21st century. It will pave the way for a better future for Europeans that is more prosperous and more sustainable.



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November 28, 2022

Commission plans EU business tax overhaul

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A planned reform of EU corporate taxation would substitute national business tax rules, EU Economy Commissioner Paolo Gentiloni said Monday.

The “Business in Europe Framework for Income Taxation,” or BEFIT, would “replace national corporate tax systems for the companies in scope, thus reducing compliance costs and barriers to cross-border investment,” he said at an EU tax event Monday.

It would draw on a global deal on a two-legged corporate tax that was agreed between more than 130 countries in 2021, and consists of the reallocation of taxable profits (known as Pillar One) and of a minimum corporate tax base of 15 percent (known as Pillar Two), the latter of which the EU is struggling to ratify due to subsequent vetoes first by Poland and now by Hungary.

But it would “go further,” Gentiloni said. It would have “the key features of a simplified common tax base and allocation of taxable profits between member states,” thus diminishing taxation policies within the bloc whereby countries seek to attract businesses by luring them with favorable tax regimes.

The reform is currently scheduled for the second quarter of 2023, according to the Commission’s own work program. A public consultation runs until January 26.

Taxation initiatives are always tricky as they require consent of all 27 EU countries.

CORRECTION: This article has been updated to correct the schedule for the reform.





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