“The broader challenge we face is how to make more in Europe and to strengthen Europe’s own production base as a central pillar of our industrial strategy (...). A European preference is a necessary instrument that contributes to this objective”, acknowledged the President of the European Commission, Ursula von der Leyen, on Monday 9 February, in a letter addressed to the European leaders meeting informally on 12 February in Alden Biesen to discuss European competitiveness and the health of the single market.
This European preference, which should, in principle, be developed in an initial regulation on Industrial Acceleration, scheduled for around 25 February, “can help create lead markets in strategic sectors and support the scaling-up of European production capabilities”, adds the President.
But this concept is part of a set of tools, with the President having first of all insisted in her letter on the ongoing effort to simplify regulations and pursue trade agreements.
In addition, the use of European preference must be “underpinned by robust economic analysis and aligned with our industrial priorities, while engaging constructively with trusted partners”, says the President.
While this letter is good news for some diplomats, because it marks “recognition of the need for a European preference”, says one of them, and represents “a game-changer”, others were less enthusiastic and wanted to focus on the priority given by the President to the strategy of pursuing regulatory simplification and trade agreements, which occupy a large part of her letter.
On the subject of simplification, the President recalled the actions taken so far by the Commission to simplify the life of European businesses, such as the first so-called ‘omnibus’ programmes to simplify legislation, which will already generate savings of €15 billion by 2025. She promised business leaders that “this agenda is far from complete. Several further simplification measures will follow, including additional omnibus packages. In parallel, the Commission is doubling down on making the day-to-day operations of businesses easier through the reform of permitting procedures, which will significantly accelerate project delivery across the Union”.
“Beyond targeted adjustments, we will undertake a comprehensive regulatory deep house cleaning of the EU acquis communautaire. This exercise will aim to systematically eliminate outdated provisions, overlaps, inconsistencies, and redundant procedural requirements. It will also include a renewed and determined effort to withdraw legislative initiatives that fail to secure sufficient support in the EU Council and the European Parliament”, promised the President.
“Simplification must also be the mindset applied to everything we do going forward. Each new EU initiative must be simpler by design and must reduce the administrative burden for both businesses and citizens. In practical terms, this includes but is not limited to, favouring Regulations over Directives, limiting the use of implementing and delegated acts”. The Commission also invites “both co-legislators to ensure that amendments proposed do not undermine simplification objectives”.
Another message from the President, with regard to competitiveness, is that while it is preferable to agree and move forward together, willing member countries should not prevent themselves from moving forward with enhanced cooperation if they deem it necessary.
The letter also looks at the measures taken to encourage the development of AI in the EU and the new European financial instruments, such as the European Competitiveness Fund and the new Horizon Europe programme, which have been given increased resources.
Link to the letter: https://aeur.eu/f/knd (Original version in French by Solenn Paulic)