The subject of the EU’s competitiveness is once again on the agenda of the European Council on Thursday 23 and Friday 24 March. The February summit had focused on short-term measures to support EU industry in the face of the US Inflation Reduction Act (IRA), such as the relaxation of State aid rules (see EUROPE 13118/2). This time, the leaders will instead talk about the long-term strategy to strengthen competitiveness.
For example, the European Commission’s recent proposals for a Net Zero Industry Act (see EUROPE 13143/1) or for a Critical Raw Materials Act (see EUROPE 13143/2) are not expected to be discussed at length (see EUROPE 13146/1).
On the contrary, the consolidation of the Single Market will be at the heart of the discussions. At the end of their meeting, the heads of state and government are expected to adopt conclusions focusing on: - the regulatory environment; - investment; - research and innovation; - digitalisation; - skills; - circularity (see EUROPE 13146/1).
According to a draft set of conclusions dated 21 March, leaders will insist on the “full mobilisation of available funding and existing financial instruments” to support strategic industrial sectors. This paragraph was not included in the previous version of the conclusions that we commented on.
The draft text does not mention the idea of a sovereignty fund, which had been mentioned in February (see EUROPE 13118/2). However, some leaders may bring up the subject, as it is important for everyone to think about it, according to one European official. The June summit will be an opportunity to look further into the sovereignty fund, he added.
At their dinner, the leaders will discuss EU trade policy. While there is a consensus on the need for new free trade agreements, they are slow to emerge. For this reason, the President of the European Council, Charles Michel, invited the Member States to reflect on the method for concluding and ratifying these agreements as well as their objectives (see EUROPE 13142/2). The aim is to bring about “a new dynamic”, according to the same European official: “We need to identify where the problems are and how to solve them”.
Finally, the question of the place of nuclear power in the legislative texts relating to the transition could be invited into the debates. French President Emmanuel Macron, in particular, is keen to address the issue, according to two EU diplomats. Rather than making a clear decision on the role of nuclear power in the transition, it is a matter of “trying to rationalise the subject”, according to one source. Last week, the European Commission decided not to include nuclear technologies in the eight strategic ‘net-zero’ technologies in its Net-Zero Industry Act (see EUROPE 13143/1).
See the draft conclusions of the European Council: https://aeur.eu/f/5yd (Original version in French by Léa Marchal, with the editorial staff)