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Europe Daily Bulletin No. 13308
SECTORAL POLICIES / Competitiveness

EU27 expected to adopt their position on thorny issue of Net-Zero Industry Act

The ministers responsible for competitiveness in the Member States are due to meet in Brussels, on Thursday 7 and Friday 8 December, at the EU ‘Competitiveness’ Council where they are expected to adopt their position on the Net-Zero Industry Act (NZIA), a legislative dossier that has been the focus of discussions for several months (see EUROPE 13297/1).

The agenda includes a policy debate on the regulation on forced labour (see EUROPE 13273/8) and a discussion on the EU’s policy on small and medium-sized enterprises (SMEs).

A number of other minor subjects are also on the agenda for the meeting, and are due to be addressed on Friday: a review of research and innovation policies, as well as the adoption of conclusions on space traffic management and the urgent need to develop a European approach to space.

General approach on Net-Zero Industry Act

This is surely the most important point of this meeting. The ministers of the Member States must adopt a general approach in order to be able to launch interinstitutional negotiations with Parliament. However, according to a senior European official, the text is “still open for negotiation”, as it requires “discussion at political level, given the implications for Member States’ industrial policies”.

Two articles, article 3 and article 20, are the main focus of the debate. Article 3 covers so-called ‘net-zero’ technologies, including nuclear power, which remains an area of opposition for some Member States.

Article 20 specifies access to contracts and the criteria that must be taken into account when awarding contracts. The European Commission, like Parliament, had proposed introducing additional sustainability and resilience criteria to ensure that projects were not awarded solely on the basis of price. A decision opposed by certain Member States, such as Germany.

The Spanish Presidency has circulated a preparatory document, in which these two points are presented as ‘key political issues’.

Should the discussions result in a political agreement (‘general approach’), the first trilogue is scheduled for 13 December.

To see the Spanish Presidency’s working document: https://aeur.eu/f/9zk

Products made using forced labour

The Member States must hold a policy debate on the regulation banning products made using forced labour. Parliament adopted its position in committee on 16 October, but negotiations at EU Council level have not kept pace.

Priority has been given to the directive on corporate due diligence (see EUROPE 13294/24), which is of greater interest, according to a senior European official. The meeting will provide an opportunity to take an overall view, but the dossier will almost certainly fall into the hands of the future Belgian Presidency of the EU Council after January.

SMEs and administrative burden

The European ministers will also have the opportunity to discuss the new support measures announced by the Commission for SMEs (see EUROPE 13248/21).

The ambition is to bring about a global policy to reduce administrative burdens, which was already announced by Ursula von der Leyen in September and publicly supported by France and Germany as well as Parliament (see EUROPE 13248/32, 13299/16).

Space and research

Finally, a number of other discussions on the agenda are expected to keep the ministers busy on Friday, notably on space and European research. The main aim of these debates is to develop a general vision, both of a European space policy and of the importance of research and innovation within the EU in boosting European competitiveness. (Original version in French by Isalia Stieffatre)

Contents

ECONOMY - FINANCE - BUSINESS
FUNDAMENTAL RIGHTS - SOCIETAL ISSUES
SECTORAL POLICIES
EXTERNAL ACTION
INSTITUTIONAL
Russian invasion of Ukraine
SOCIAL AFFAIRS
NEWS BRIEFS