The various groups in the European Parliament welcome the accelerated permitting procedures for clean technology projects that should be included in the Net-Zero Industry Act. They addressed this message to the European Commission during a debate in Strasbourg on Wednesday 15 March. However, the groups are divided into two camps when it comes to other levers of action for the EU to strengthen its competitiveness, with a separation between the EPP, ECR and ID groups and the others.
For these right-wing groups, the EU cannot compete with the US or China because its regulatory arsenal is too heavy and deters investors. Similarly, criticism of the ‘European Green Deal’ and its obligations is becoming increasingly vocal in the EPP. MEP Esther de Lange, for example, regretted that “thus far too much attention has been focussed on the ‘Green Deal’”, at a press conference ahead of the debate.
While she welcomed the European Commission’s intention to reduce the maximum time limits for authorisation procedures for new green industrial projects, she warned against environmental barriers. “Coming from a small member state, I can tell you that if I have a choice between protecting a snail, that is abundantly available in other Natura 2000 area, or finally getting a green hydrogen project off the ground to protect our industry and jobs, I would go for the hydrogen project, which are badly needed in Europe”.
Among the other centrist groups (Renew Europe, S&D, Greens/EFA), blaming the Green Deal and slowing down some of its texts is a mistake. “Some groups systematically try to lower ambitions. We must maintain political unity and ambition to be at the forefront of the transition”, insisted Jordi Solé (Greens/EFA, Spanish).
Financing the transition
The groups also differed on the need for financial support to companies and how to do it. On the other hand, the facilitation of private investment brings most of them together. Thus, the finalisation of the capital markets union appears to be crucial for many and the President of the European Council, Charles Michel, noted this. “The EU’s stock market capitalisation is less than half that of the US as a proportion of GDP. We need to close this gap and we know the solution, it’s called Capital Markets Union”.
MEPs Stéphane Séjourné (Renew Europe, French) and Anna Cavazzini (Greens/EFA, German) called on the Commission to move forward on the idea of a Sovereignty Fund, requested by the European Parliament in February (see EUROPE 13123/1).
Trade
Charles Michel highlighted the importance of trade to make the EU competitive. He believes that the small number of free trade agreements (FTAs) ratified in recent years should make us reflect on the method of decision-making, but also on the content of the agreements.
On the first aspect, civil society and stakeholders should be more involved in the process, he said. He gave the example of the Trade and Cooperation Agreement with the United Kingdom, where “it was possible to work quickly and well”.
On the substantive issues, he felt that a debate was needed on the objective to be achieved with FTAs. “Sometimes, if we try to encompass too much, we get the wrong grip on things” he told MEPs. This is a reference to the EU’s ambitions to spread its values to partner countries and its standards of respect for human rights and the environment. (Original version in French by Léa Marchal)