More state aid in the short term and a sovereign fund municipality by summer 2023. They are the two pillars of the new Green Deal Industrial Plan to improve the competitiveness of European zero-emission industry (announced in Davos) and support the rapid transition towards climate neutrality. The plan was presented today, Wednesday 1 February, by the President of the European Commission, Ursula von der Leyen.
“The plan will form part of the European Green Deal, which has set us on the path to climate neutrality, and will allow Europe to lead the way globally in the net zero industrial age”, reads the communication adopted by the College of Commissioners. In the next decade, it will be necessary to "massively increase technological development, manufacturing production and installation of net zero products and energy supply".
Von der Leyen on state aid: "Targeted and temporary"
Obviously the countries with less debt tend to be in favor of having each country finance itself the necessary incentives and measures and, therefore, a greater use of state aid” and therefore a more flexible Europe in this respect. But this aid will have to be "targeted and temporary", specified von der Leyen, in the press conference to present the plan. “It is important to avoid fragmentation and ensure a level playing field.” What does it mean? We must not disadvantage countries with high public debt (for example Italy) which cannot afford large investments, or at least can but only by getting into even more debt.
Von der Leyen: "No EU country is an island"
“We should always bear in mind that no country, no member state of the European Union is an island, not even one. The integrity of the single market and the functioning of the single market prosperity is why industries are located in different Member States", he explained adding that "the integrity of the single market and the functioning of the single market prosperity is the which is why the industries are located in different Member States,” he said.
The next decade will be “decisive” for the climate
As regards the climate, the next decade will be “decisive”. “He will be the one who decides whether we are successful in fighting climate change. The most important thing is the industry for the zero emissions goal. We want to seize the moment and we know that the next few years will be the ones that shape the net-zero economy and where it will be decided where it will be located. And we want to be an important part of this net-zero industry that we need globally.”
“We are convinced that the European Green Deal is our growth strategy,” added von der Leyen.
EU state aid "for crisis and transition" until 2025
In the draft that the EU Commission sent to the Member States, there is a proposal to transform the temporary crisis framework for state aid into a temporary "crisis and transition" framework to facilitate and accelerate the green transition. This is the "strong response" that the European Union wants to give to the US 370 million dollar plan against inflation, theInflation Reduction Act.
The proposal aims to ensure faster access to finance for companies active in the EU, to stimulate a faster introduction of renewables, and to support the decarbonisation of industry and the production of equipment for the transition to net zero. The new provisions will be in force until 31 December 2025.
Towards the EU Council of 9-10 February
The proposal has been forwarded to the Member States and will be subject to negotiations in the coming weeks, starting on European Council of the 9 e 10 February. The text identifies some directives on which to focus for the revitalization of European industrial competitiveness. “The starting point of the plan – continues the note – is the need to massively increase technological development, manufacturing production and the installation of zero-emission products the energy supply over the next decade, as well as the added value of a EU-wide approach to addressing this challenge together”.
