The European Union Ministers for Industry reached a consensus on Thursday 19 November on updating the industrial strategy planned for 2021, and in particular to support a strategic approach that is both more intelligent in the face of the realities of international competition and with the advent of the European Green Deal.
“First of all, we managed to build a consensus about the need of a European industrial strategy of the European Union, this is supported by a large and overwhelming majority of the Member States”, welcomed Economics Minister Peter Altmaier.
Referring to the recent conclusions on the future of European industrial policy (see EUROPE 12600/20), the German Minister welcomed the fact that the EU finally has a common position on this issue, “which is very important for the new US administration, but also for countries such as China and others”.
Member States agreed on the need to protect European industry, the need to revise State aid rules (with nuances, some Member States, such as Sweden, preferring to limit this revision to market failures only) and the significance of importance projects of common interest (IPCEI).
The intervention by Portugal, which will take over the rotating Presidency of the EU Council at the beginning of 2021, is reportedly emblematic. Traditionally open to external investment, his representative is reported to have insisted on the importance of not replaying the scenario of the destruction of low-value-added manufacturing industries for energy-intensive industries and high-value-added technology sectors. Even the Netherlands, a proponent of free and undistorted competition, stressed the importance of ecosystem approaches.
Many delegations have mentioned the need to avoid carbon leakage. At the press conference, Mr Altmaier cited the importance of a carbon border adjustment mechanism at the EU’s borders to prevent European industry from facing unfair competition from non-Member States.
Asked by EUROPE about the need to have captive markets, as the Americans do for example in the space sector, the German Minister took the view that the principle of an open economy would remain. “This does not preclude us from doing what we can to encourage key sectors”, he added. For the German, it is important to preserve “technological, digital and industrial sovereignty”, citing the case of Gaia-X (see EUROPE 12499/15).
“It is not a question of re-inventing the wheel in Europe. We are not going to repatriate everything”, said the European Commissioner for Internal Market, Thierry Breton. “But it’s about having points where we are autonomous”, he continued, insisting on the EU’s digital sovereignty. Replying to EUROPE on the Commission’s approach to protecting the internal market against the United Kingdom, the Commissioner insisted on giving “readability to our businesses” to enable entrepreneurs to invest in the short and medium term and thus avoid “rendez-vous clauses” after 1 or 2 years.
SMEs. Mr Breton also confirmed that the update of the European industrial strategy will include a review of the strategy for SMEs. Indeed, during the exchanges, many Member States insisted on the inclusiveness of industrial strategy and IPCEIs for SMEs.
Under the any other business item, the Commission’s ‘SME envoy’ presented a report according to which one third of European SMEs have adopted a plan to facilitate the green and digital transitions of their activities.
During the first half of 2021, Portugal will present its programme to the delegations and will seek to: – reduce administrative barriers and regulatory burdens; – facilitate access to financing for SMEs and to markets by deepening the single market; – accelerate the green transition of SMEs.
To consult the SME envoy’s report: https://bit.ly/3lNl1wG (Original version in French by Pascal Hansens)