The Competitiveness Council on Friday 24 May failed to give any clear direction on how to provide financial support for European industry. The conclusions adopted by the EU27 ministers at the end of the meeting do not differ from those of the European Council of 18 April. Asked by Agence Europe ahead of the meeting whether they could go further than their leaders, the Flemish Minister for the Economy and Innovation, Jo Brouns, who chaired the meeting, replied that they could not.
Above all, the meeting served to highlight the differences of opinion between Member States on the issue of public investment. A few days earlier, the Spanish, Greek and Portuguese delegations had called, in an information note, for a new European financing instrument (see EUROPE 13414/5).
Spain supported its request during discussions between ministers, prompting the other delegations to react. In addition to the two countries that have co-signed the note, other countries have expressed their support for the ideas set out in it: Italy, France, Cyprus and Poland.
Interviewed by Agence Europe on his arrival at the Council, Slovenia’s Secretary of State for the Economy, Matevž Frangež, also spoke in favour of increasing the European budget to tackle the challenges of competitiveness. “There are initiatives such as the Strategic Technologies for Europe Platform (‘STEP’) to give Member States flexibility in the allocation of existing European funds. However, in Slovenia, we have already allocated the recovery plan funds that were allocated to us, as well as the cohesion funds. So I am personally very much in favour of a European mechanism for joint investment”.
Unsurprisingly, Sweden, Finland, the Netherlands and Denmark were more cautious on this issue. In their view, the discussion should first take place as part of the review of the MFF. They reiterated their vision of a competitive Europe that does not rely on massive subsidies. The Danish and Dutch ministers suggested looking into the rationalisation of existing funds.
Despite this, the French Minister Delegate for Industry, Roland Lescure, said he was confident that these countries could be brought on board. “We’re running out of time. The ambitions are there, but the resources must be there too”, he told Agence Europe.
The compromise
This impasse has led to a text of conclusions that remains very general on the question of public investment. The ministers call on the Commission “without pre-empting the next Multiannual Financial Framework, to evaluate and, if necessary, improve existing European funding mechanisms”. This should then lead it to “assess whether the financing toolbox for industry is effective to reach the Union’s common goals in a timely manner”.
As at the April European Council, the emphasis is more on mobilising private capital, a subject on which there is consensus.
The ministers also agreed on a wording on State aid. These must guarantee fair competition within the internal market. The EU27 are not venturing to revise the rules governing state aid, as suggested by Enrico Letta in his report. They are, however, calling for simpler and faster notification procedures to the European Commission, as well as an evaluation and improvement of State aid instruments.
Reducing the administrative burden
Like their respective leaders, the ministers were united on the need to reduce the regulatory burden on businesses. The objective of reducing reporting obligations by 25% is repeated, as is the need to simplify permit procedures for projects that contribute to the Union’s dual transition objectives.
The ministers also discussed the biotechnology sector. Several delegations called for the regulatory framework and licensing procedures to be simplified, and for research in this area to be supported.
Green Deal
This part has been the subject of lengthy discussions over the last few days, but the ministers have agreed to give pride of place to the ‘Green Deal’ in their conclusions on the future of industry. In particular, they stress the need to “create favourable conditions for demand for sustainable, net zero, low carbon and circular products and materials”.
To see the conclusions, go to https://aeur.eu/f/cd6 (Original version in French by Léa Marchal)