The heads of state and government of the European Union urged this Thursday to launch a plan to boost European clean industriesfacilitating public aid and accelerating permits for new projects, in order to deal with the massive subsidies that the United States or China offer the sector.
“We have to maintain our advantage in the development, manufacture and deployment of clean technologies.especially in the context of the (US) inflation reduction law,” said the president of the European Commission, Ursula von der Leyenin a press conference at the end of a meeting marked by the visit of the Ukrainian president, Volodimir Zelensky.
European leaders discussed the Green Pact Industrial Plan proposed last week by the Commission in response to the washington law and its $370 billion in subsidies to green production technologies American, who threaten to push some European companies to go to the other side of the Atlantic.
Although negotiations continue with USA In order for European firms to receive favorable treatment, the EU chose to adopt its own strategy to regain competitiveness against China, Japan or India, which foresee massive investments in the “green” industry.
“The EU will act decisively to ensure its long-term competitiveness, prosperity and role on the global stage”, affirm the conclusions approved by the leaders, who ask the Commission to work “urgently” to expedite State aid and mobilize the available European funds.
They supported the proposal to relax the rules on public aid to make it easier for governments to give subsidies, including tax breaksbut they insisted that the support must be “targeted, temporary and proportionate” and directed at strategic sectors affected by foreign subsidies or high energy prices.
Several States fear that the measure will lead to a allowance racenot only with third parties but within the European market itself, and give a disproportionate advantage to countries with more fiscal leeway, especially after having verified that Germany and France accounted for more than two thirds of the public aid guaranteed by Brussels in the pandemic.
Paris and Berlin are the main advocates of easingwhile the Netherlands and the Nordics are the most reluctant to a measure that Spain supports as long as it is temporary and limited to some sectors, according to government sources.
Spain believes that there is a risk of fragmentation of the single marketbut also that companies “go to the United States”, for which reason it is even open to allowing States to match the subsidies of non-EU countries when there is a danger that a company will leave the continent, something about which at the moment there is no consensus.
To compensate for this easing and balance the conditions in the Twenty-seven, the leaders called for the use of European funding from instruments that are already in place, such as the European Investment Bank.
“If we take into account what States can do with the adaptation of the State aid regime, in addition to existing European financing, there is a lot of money that can be directed to certain sectors,” said the President of the European Council, Charles-Michelwho assured that a “pragmatic” approach has been adopted.
In the long term, the Commission proposes to create a “sovereignty fund” with European fundingbut the proposal will arrive in summer and among the Twenty-seven the idea predominates that before creating new instruments, the existing ones should be exploited and the needs of the sector analyzed.
Beyond providing financing, the leaders asked the Community Executive expedite administrative procedures and permits for production, guarantee access to critical raw materials, modify the rules on public tenders to promote clean industries; and improve training.
They also advocated closing trade agreements with other countries to diversify supply sources, as well as using trade defense instruments against unfair practices.
Following the debate, the Commission will translate these initiatives into concrete legislative proposals ahead of the March summit.
(With information from EFE)
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Source-www.infobae.com