The Heads of State or Government of the countries of the European Union discussed European competitiveness and economic security on Friday, 27 October.
Without making any major changes to the draft conclusions that had circulated before the summit, Member States reiterated how important it was for the EU to adapt its economic policy and the operation of its single market in order to cope with the new global context.
Before the discussion, Estonian Prime Minister Kaja Kallas stated that the EU needed to strive to protect its critical infrastructures—which are necessary for it to properly function technically and economically—while “build[ing] on our strengths”, retaining people who innovate, and reducing the “bureaucratic burden” weighing down businesses.
Focusing the EU’s efforts on strategic areas
The EU27 have therefore agreed to continue along the path upon which they have already embarked. President of the European Council Charles Michel thus expressed that Member States are “fully determined” to “strengthen the European Union’s competitiveness not just in the short term but in the long term as well” by developing economic investments in order to mobilise means and “to stimulate [...] businesses’ confidence”.
For President of the European Commission Ursula von der Leyen, what is important is that the EU “focus on the areas where we already have a competitive edge”, such as its energy policy.
The consequences of the American Inflation Reduction Act in Europe (see EUROPE 13227/8) were also mentioned by Member States. “We need to stay very vigilant [about its impact]”, affirmed Mrs von der Leyen. By way of reminder, she mentioned other risks weighing on the EU, such as certain Chinese trade practices. With regard to the work to be done in order to support Europe’s clean technology industries, she argued, “This big work and more about it should not distract us from the much greater impact of unfair practices that we see by China”.
Advancing the legislative process
In the conclusions published at the end of the summit, the European Council stresses that it is important for the European Union to continue its work on “developing the EU’s competitive edge in digital and clean technologies” as well as “reducing key critical dependencies and diversifying supply chains through strategic partnerships”.
Moreover, the Heads of State or Government are calling on the EU legislature to expedite its work on the Net-Zero Industry Act (NZIA) (see EUROPE 13279/13) and the Critical Raw Materials Act (CRMA). The EU Council has not yet come to a decision on the NZIA, but the CRMA has entered the stage of interinstitutional negotiations with the European Parliament (see EUROPE 13250/17).
See the European Council’s conclusions: https://aeur.eu/f/9au (Original version in French by Isalia Stieffatre with the editorial staff)