Von der Leyen stated that the aim of the new industrial plan was to make Europe’s economy the world market leader for clean technologies and innovations. “In the next few decades we will experience the greatest industrial change of our time – maybe even of all time,” said von der Leyen on Tuesday at the World Economic Forum in Davos, Switzerland. “And those who develop and manufacture the technologies that underpin tomorrow’s economy will have the greatest competitive advantage.”
Von der Leyen cited the controversial subsidy plans for climate-friendly technologies in the USA and China for reasons of competition as one reason for the new plan. “For European industry to remain attractive, it is necessary to keep up with offers and incentives outside the EU,” she explained.
More and faster government funding
In her opinion, it is necessary to relax the rules for state subsidies. However, additional EU funds would also have to be made available. It is known that state aid can only be a limited solution that only a few member states can fall back on, explained von der Leyen.
That is why, according to them, a solution is currently being sought as to how companies in EU countries without large funding opportunities could be supported in the short term. In the medium term there should then be a “European Sovereignty Fund”.
New industrial plan for the EU called for
EU Commission President Ursula von der Leyen wants to make Europe’s economy the world market leader for clean technologies and innovations with a new industrial plan. Von der Leyen also cited the subsidy plans for climate-friendly technologies in the USA and China, which were controversial for reasons of competition, as a reason for the new plan. Specifically, the plan provides for creating more favorable conditions for suppliers of products such as wind energy, heat pumps, solar energy and clean hydrogen. A “net-zero industry law” is also to be proposed for this purpose, setting targets for clean technologies in Europe by 2030.
First call only
Von der Leyen did not say what the amounts could be. A needs analysis is currently in progress, she explained. Europe has completely overslept the development in the USA. The US program, which was approved last year and is now being implemented, envisages investments of 369 billion US dollars (341 billion euros). It is criticized primarily because subsidies and tax credits are linked to companies using US products or producing in the US – the buzzword for this: “Buy American”.
“We should work towards ensuring that our respective incentive programs are fair and mutually reinforcing,” von der Leyen made clear on Tuesday with a view to the dispute and the ongoing negotiations that the EU is not planning a similar clause. Commission representatives had already emphasized in advance that they did not want a “Buy European” program, but they did want “Made in Europe” funding.
Von der Leyen expressly emphasized in her speech: “Our goal should be to maintain transatlantic trade and transatlantic investments as best we can.” The first experts are already warning of the dawn of a new protectionist era that could noticeably reduce global trade – with the corresponding consequences for the prosperity. Any decline in trade could have a positive impact on the environment and climate.
Clean technology targets for 2030
In addition to new investments, von der Leyen’s industrial plan includes a reduction in bureaucracy for suppliers of products such as wind energy, heat pumps, solar energy and clean hydrogen. A “net-zero industry law” is also to be proposed for this purpose, which will set clear goals for clean technologies in Europe by 2030 on the way to climate neutrality.
Less dependence on China
Other points include reducing dependency on supplies of raw materials from countries such as China, a program to develop skilled workers and taking decisive action against countries that do not play by the rules of the World Trade Organization (WTO).
China, for example, is encouraging energy-intensive companies to relocate all or part of their production there with promises of cheap energy, low labor costs and a looser regulatory environment, von der Leyen said. At the same time, the country is heavily subsidizing its industry and restricting access to the Chinese market for EU companies.
The first details of the plans should be available by the end of the month. The heads of state and government of the EU states issued a corresponding mandate at their meeting in December. They then want to discuss this at a special meeting on February 9th and 10th.
