The European Commission presents the broad lines to promote the EU’s clean industry ahead of Washington’s subsidy law
The European Union has always been strong in times of adversity. The pandemic, the war in Ukraine and now the US law on green subsidies have led Brussels to create a Green Pact to boost clean industry on European soil. The plan proposed this Wednesday, which now needs to be discussed between member states and will be presented at the European summit in March, includes easing state aid, mobilizing European funds, creating a sovereign wealth fund and improving European supply chains. .
European Commission President Ursula von der Leyen stressed that Europe is experiencing “a decisive moment” and must “seize the moment” to accelerate the energy transition. “This decade will decide what the economy of the future looks like. We have a strong starting position, but we cannot stand still”, he stressed. Brussels is aware of the need for a common roadmap to achieve climate goals and to cope with the policies of major economies such as Japan, Canada and the US – the latter amounts to USD 369,000 million -.
Wednesday’s plan doesn’t go into details as the European executive awaits the opinion of European countries, but it does highlight four key pillars. The first relates to the appropriate framework to facilitate support for “key enabling technologies”. Brussels wants to relax state aid to “accelerate and simplify it”, with simple tax reduction models or specific incentives for clean technology production plants to deter displacement.
Funding will also be essential to boost Europe’s strategic sectors. In addition to state aid, which must always be targeted and temporary, “European funds must be mobilized”, Von der Leyen emphasises. Some time ago, Brussels pointed to the need to create a European sovereign wealth fund, a mechanism that it admits will “take some time” and could take up to six months to approve. At the same time, the Community Executive wants to mobilize the additional resources from the Next Generation Funds – which could amount to around EUR 250,000 million, as well as the excess funding from the EU REPower program and the European Investment and Innovation Funds, so that they are targeted to “key promote technologies.
The lack of qualified labor is already a problem for some manufacturing companies and the European plan aims to solve this problem by promoting training and in turn combating high youth unemployment.
The proposal is complemented by an international “ambitious agenda” to promote agreements with third countries. The European Commission considers it essential to speed up negotiations with Mexico, Chile, New Zealand and Australia and to unblock the Mercosur agreement. “We need to build supply chains that allow our industry to develop.”
Source: La Verdad
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