According to Ursula von der Leyen’s Commission, the EU must invest hundreds of billions of euros in climate-friendly technologies to save Europe as an industrial location.
The local industry is under great pressure, not least because subsidies in countries such as the USA and China distort the competitive conditions, according to recommendations presented by the authority. This requires expanding and accelerating access to funding for climate-neutral industry.
Von der Leyen did not say exactly how much money is needed. She wants to make a proposal for a so-called sovereignty fund towards the middle of the year. This should ensure that funds are available for climate-friendly technologies across the EU. However, the Commission also emphasizes that hundreds of billions are available in existing funds for a climate-friendly conversion. “At the moment we have to work with what we have right now,” von der Leyen said.
Von der Leyen: “We can’t wait too long”
In addition, the EU Commission wants to give the EU states more freedom to grant subsidies. However, these are limited to certain areas and limited in time. It is envisaged that the state aid rules could be relaxed by the end of 2025. “We need this first step of financing now, so we can’t wait too long,” von der Leyen said, referring to state aid.
Because of these financial injections, there are fears in the EU that domestic companies could set up new locations in other regions of the world or relocate jobs there if they are not also supported here with taxpayers’ money. At the same time, the EU Commission wants to use the initiative to strengthen climate-friendly energy production in Europe.
But there are also concerns within the EU that large countries like Germany, which can invest more money than others, could now distort competition. The Commission’s proposal would help Germany and France extremely, says Green MEP Rasmus Andresen. He “actually doesn’t help at all” for many other states. “That can lead to more inequality,” said the spokesman for the German Greens in the European Parliament.
More EU funds needed for green transformation of industry
The EU Commission addresses this debate in its proposals. She emphasizes that more EU funds are needed for the green transformation of industry. This is intended to avoid aggravation of regional differences and to close gaps between different levels of financial strength.
Angelika Niebler, co-chair of the CDU/CSU group in the EU Parliament, emphasized: “Unfortunately, the answers presented today only make sense to a limited extent.” The announced further softening of the subsidy rules should not be used as an excuse for new debt funds. On the other hand, Bernd Lange, trade politician for the SPD, says: “The measures are going in the right direction and have been chosen so precisely that they will not result in new trade conflicts.” The proposals could become a “game changer”.
The Commission’s proposals are to be discussed with the member states at an EU summit next week. In March, legislative proposals are to be presented, which the EU heads of state and government are then to discuss again.
