login
login
Image header Agence Europe
Europe Daily Bulletin No. 12556
EU RESPONSE TO COVID-19 / Economy

Digital, internal market and industry will be focus at upcoming European Council

The heads of state and government intend to draw on the potential of the digital sector and the single market, as well as that of the industrial fabric, to relaunch the European economic machine that has been particularly badly hit since the start of the pandemic, according to draft conclusions unveiled by Euractiv on Wednesday 9 September.

The project emphasised the fact that “the Covid-19 pandemic has highlighted the need to accelerate the digital transition in Europe”. It therefore places a great focus on this sector, emphasising the importance for Europe to achieve digital sovereignty while ensuring that there is no question of protectionism.

In order to be digitally sovereign, Europe must be able to define its own rules, make autonomous technological choices and develop and deploy its strategic digital infrastructure and capabilities”, said the document, to which Member States have been invited to respond. “The EU will remain open to all companies that comply with European rules and standards”, it adds, in what is perhaps an attempt to differentiate itself from the US model.

Furthermore, the draft conclusions call on Europe to give itself the financial means to match its ambitions by earmarking enough money from the next EU budget and the Recovery Plan for the digital sector.

The paper mentions, for example, next generation digital technologies — such as quantum computing and supercomputers, blockchain, and artificial intelligence — or digital capabilities in education systems.

It should be noted that the European Commission intends to present a digital package (a regulation on high-performance computing and a recommendation on connectivity) on 15 September as well as presenting an action plan for digital literacy on 30 September.

Industrial Resilience

The conclusions start by looking at the importance of the internal market for the European Union's economic recovery and the dual green and digital transitions as well as, consequently, the need to deepen and strengthen this. To this end, the European Council, in connection with the Single Market Implementation Plan, wants to remove “unjustified” barriers, particularly in the services sector.

Moreover, the conclusions, in their provisional form, suggest that competition rules might be adapted. They stress the importance of defending multilateralism against protectionism and abusive practices by ensuring that the World Trade Organization is maintained as the reference institution. The draft conclusions call for an international procurement instrument to be adopted as soon as possible, while also combating any distorting effects of foreign subsidies within the single market.

Industrial policy is also highlighted as it emphasises, amongst other things, the importance of guaranteeing the sector’s autonomy against attempts at foreign interference. This can be done, for example, by encouraging the use of important projects of common European interest (IPCEI), by creating a regulatory framework (in particular in respect of state aid) that is favourable to SMEs, or by strengthening European autonomy in the space sector on the one hand, and the industrial base in the defence sector on the other hand. (Original version in French by Sophie Petitjean and Pascal Hansens)

Contents

EXTERNAL ACTION
EU RESPONSE TO COVID-19
INSTITUTIONAL
SECTORAL POLICIES
ECONOMY - FINANCE
COURT OF JUSTICE OF THE EU
NEWS BRIEFS
CORRIGENDUM