Swedish Prime Minister Ulf Kristersson and his government’s Minister for European Affairs, Jessika Roswall, speaking on Wednesday 11 January, during meetings with European journalists travelling in Sweden, including EUROPE, stressed the importance of working not only on short-term competitiveness, in response to the US Inflation Reduction Act (IRA), but also in the long term.
“We need to focus on both short-term and long-term competitiveness”, Kristersson said, adding that although the EU had long proved its ability to manage crises, this was vital, but not sufficient.
With the European Commission due to present proposals to deal with the Inflation Reduction Actat the end of January with an eye to the February European Council, the Prime Minister explained that Europeans needed to discuss how this US legislation could negatively affect European businesses and that it could create imbalances, adding that it was good that the Americans were working on tackling climate change.
“Let’s find unity to tackle the IRA in the short term, but let’s not take short-term measures that would be bad for European competitiveness in the long term: that will be my basic idea for the discussion” [between the leaders], said the Prime Minister.
The European Affairs Minister said that a subsidy race was not the right solution, adding that long-term answers were needed.
According to Ms Roswall, the EU already has the recipe to be stronger and more competitive: a stronger single market, improved infrastructure, an innovative, smart digital market and in some circumstances fewer rules. Like the Prime Minister, the Minister defended free trade agreements, believing that diversification and openness were essential. Moreover, for Ms Roswall, the green and energy transitions are closely linked to European competitiveness.
Mr Kristersson stressed the importance of maintaining the integrity of the common market, free competition and a level playing field between Member States and between continents. He said the anniversary of 30 years of the single market is a good opportunity to discuss how to go further, European competitiveness in services, and the digital single market.
The Commission already at work
In this context, the European Commissioner for Internal Market, Thierry Breton, has launched the idea of a ‘Clean Tech Act’ to support European competitiveness. In recent days he has met with members of the Spanish, Belgian and Polish governments to discuss the European response to the IRA.
The EU needs a “plan” that allows it not only to lead the green transition, but also to be competitive, he stressed during an appearance on a French television channel. “When we are investing this much, we want to invest in our jobs, in our technology, in our industries”.
The issue of EU competitiveness was additionally the subject of a discussion within the college of Commissioners on 11 January to prepare the forthcoming proposals. (Original version in French by Camille-Cerise Gessant and Léa Marchal)