Simplification shock, drop in the cost of energy … Brussels unveiled its roadmap this Wednesday, January 29, for the competitiveness that places companies in the heart of the “five -year period” of Ursula von der Leyen after the accent put in the latter years on the environment. The publication of this “competitiveness compass” comes under pressure from Donald Trump’s thunderous announcements in terms of protectionism or giant investments in artificial intelligence.
“It is time to relaunch the engine of innovation” in Europe, said the president of the European Commission, by presenting her project. However, she assured that there was no question of giving up environmental commitments. “I want to be very clear, the European Union maintains the course concerning the objectives of the green pact,” she hammered.
Digital champions, the United States but also China has dug a gaping ditch with a Europe bogged down in stagnation. The EU intends to return to the race by applying the recommendations made last year by the former Italian heads of government Enrico Letta and Mario Draghi in two highly publicized reports. First concrete proposals on the reduction of the administrative burden of companies and aid to clean industry are expected on February 26.
Simplification shock
The numerous environmental texts voted in recent years are in the sights of companies that multiply threats of relocation, while environmentalists fear a detacotation of climate laws. Dozens of legislation will be reviewed to reduce the administrative burden, in particular an emblematic text on the duty of vigilance of companies towards their subcontractors, another on social and environmental reporting, or even the Reach regulation to protect human health against the risks linked to chemicals.
Ursula von der Leyen “embraced the calls of lobbies, neo-liberals and the extreme right” and “confirms his massive offensive against environmental legislation”, denounced the Green MEP Marie Toussaint.
A new category of intermediate size company, between SMEs and large groups, will be created to lighten the regulatory burden of “thousands of companies”.
A specific European legal regime, distinct from the 27 national jurisdictions, would be created to allow innovative companies to access “harmonized rules” in terms of bankruptcy, labor law, taxation.
Cheaper energy
Since the war in Ukraine, Europe has lost its cheap Russian gas supply and has undergone a cost of energy much higher than its international competitors. To save its industry, the EU must reduce its dependence on fossil fuels. “We must further develop our energy production from renewable sources, and in some countries nuclear,” said Ursula von der Leyen, recognizing the role of the long taboo atom in Brussels.
The commission’s “compass” also recommends “facilitating the long -term electricity purchase contracts” and accelerating investment in the energy transport and storage network.
Industry aid
Public “targeted and simplified” public aid will be set up to encourage the green transition of industry. For maximum efficiency, the Vice-President of the Stéphane Séviso Commission would like to aim for primarily “the first 100 CO2 issuing sites” which represent more than half of industrial emissions in Europe.
Labels to develop demand for low carbon products will be created. Brussels intends for example to develop “green” steel whose demand is today almost zero due to prohibitive costs. For the most difficult branches such as chemistry, steel industry and automobile, specific sectoral plans are planned this year.
Apply competition rules
Innovation in the technological sector requires very large budgets that only the largest companies are able to assume. Hence giant marriages internationally. However, when the commission, the gendarme of competition in the EU, studies a merger, it essentially takes its impact on prices which slows down the creation of European champions.
Mario Draghi has recommended to adapt the regulation of concentrations to also take into account positive effects on innovation. It was heard by the Commission, which announces “a review of guidelines to assess mergers”.
Reduce dependencies
Stéphane Séjourné wants to accelerate the reopening of mines of rare metals in Europe and has already received 170 operating or mining research projects, projects often disputed locally for their environmental impact. The objective is to reduce European dependencies, especially towards China. “We will facilitate” the allocation of permit, says the commissioner in charge of industrial strategy.
The “compass” also provides for the creation of a platform for the joint purchase of strategic raw materials. It insists on the development of multiple international partnerships to make the supplies resilient, including in green (solar, wind), digital technologies (chips) or essential ingredients for drugs. In a provisional text, the “compass” evoked the introduction next year of a “European preference in public procurement” for certain critical technologies, a measure pushed by France in order to reply to the restrictions of China.
Building the Savings Union
The single market is over thirty years old and has helped to give birth to European giants in chemistry, aeronautics or the automobile. But he suffers from dead angles: finance, but also telecoms, energy or defense remain fragmented by different national regulations. “Remove the remaining barriers and expand the single market will contribute to competitiveness in all its dimensions,” said the Commission.
Unify European capital markets is a priority, but divergent national interests have prevented any progress for ten years. Result: Europe has a single currency but its start-ups remain unable to carry out the giant funds of their competitors in the United States. Ursula von der Leyen promised Davos a first concrete measure: the creation of “new European savings and investment products”.