Tackling energy costs, reducing the EU’s dependence on supplies of critical materials, putting in place as quickly as possible a “28th regime” for innovative companies, but also breaking down existing barriers in the single market, in particular by continuing to simplify regulations, which some believe is not going fast enough.
These are some of the avenues for action reiterated on Thursday 26 February in Brussels by the Member State Ministers responsible for Competitiveness as part of their debate on the Commission’s latest annual report on the single market and competitiveness (see EUROPE 13798/2).
Stéphane Séjourné, the Commission Vice-President responsible for Prosperity and Industrial Strategy, said that in these troubled geopolitical times, “the single market is a safe haven”. And the remedies for strengthening it are well known: industrial policy, trade diversification policy and an ambitious investment policy, he said. As far as simplification is concerned, it is also necessary to “work on national legislation in a coordinated manner”, with the same method being used in all Member States.
“Competitiveness starts with a strong and well-functioning single market, one that has no unjustified barriers, ensures effective enforcement and provides a predictable framework for businesses and consumers alike”, also summed up the day’s proceedings, at the end of which the Cypriot Minister for Energy, Trade and Industry, Michael Damianos, spoke. “Strengthening Europe’s competitiveness and completing the single market requires reinforcing our internal strengths, unlocking new sources of growth and reducing strategic dependencies. (...) A key part of this effort is strengthening SMEs”, added the Minister.
Competitiveness Fund. As far as SMEs are concerned, the Ministers were invited by the Cyprus Presidency of the Council of the EU to discuss support for SMEs under the new European Competitiveness Fund.
During a public debate, several countries stressed the need for complete geographical coverage and for selection criteria for funded projects based on impact and quality.
Upon arrival at the meeting, Lithuanian Minister Edvinas Grikšas asked that account be taken of the EU’s eastern neighbouring countries, which border on Russia and therefore face greater costs and difficulties.
Sweden, along with a number of other countries (Austria, Denmark, Finland, France, Germany, Ireland, the Netherlands, Luxembourg and Spain), has also argued, in an informal note, in favour of strict criteria for selecting only quality projects that have an impact and real potential for innovation. Paris followed suit, calling for the Fund to be used only for technological priorities with global ambitions and not to be lost “in an infinite number of issues”.
The French Minister Delegate, Sébastien Martin, called for due consideration to be given to SMEs and intermediate-sized establishments.
Nor does he want to repeat the failure of the European Recovery Plan, where “almost 10% of the funds went to Chinese industries”.
For Finland, the Fund should target areas such as quantum technology, microprocessors, 6G and bio-based solutions.
As for Berlin, the European Competitiveness Fund will have to meet five conditions: - real European added value, and not a solution “simply to remedy the shortage of national budgets”; - create more growth in Europe; - continuously promote more innovation; - facilitate access for SMEs; - support the best possible projects; - mobilise more private capital, summarised Secretary of State Thomas Steffen.
Link to the informal note on the ECF: https://aeur.eu/f/kxs (Original version in French by Solenn Paulic)