Brussels, 30/01/2013 (Agence Europe) - The French minister has argued for more flexible rules on public subsidies to companies, devaluation of the euro and a carbon tax on imported goods.
A week after the Commission's call for industrial renaissance urging the EU 28 to assume their responsibilities and adopt measures immediately, there has not been much to report (see EUROPE 11002) according to Arnaud Montebourg, speaking in the sidelines of the “Friends of Industry” meeting. This took place during the conference on industry which representatives of 24 member states and Commissioner Antonio Tajani attended in Rome on 30 January. The French minister responsible for economic recovery insisted that Europe should “not use its power to the detriment of industry” and that it should be there to help, beginning with devaluing the euro and introducing more flexible rules on public subsidies to enterprise.
Montebourg was critical that there was “no industrial preference” and proposed that “reciprocity” be implemented in the trade field when having to deal with countries that subsidised their domestic industries. As an example, he highlighted China, which funds its own industrialisation to the tune of 6% of GDP and criticised the fact that European countries' hands are tied because they are not allowed to do likewise, to the point of creating difficulties for themselves. He hammered home that “our competitors do this without even thinking about it” and criticised the Commission, the “Taliban of the Right… with their hodgepodge of directives”. Montebourg also said that he supported a 10% devaluation of the euro against the dollar, which would help to boost exports considerably. The French minister also suggested the introduction of a carbon tax on imports to help re-establish fair competition conditions when having to deal energy and climate protection costs. (EH/transl.fl)