BRUSSELS — On Wednesday, the European Union’s executive branch revealed comprehensive plans aimed at overhauling its economic strategy to address long-standing concerns from industrial leaders within the bloc. These leaders have often cited issues like hefty taxation, soaring energy costs, and burdensome regulations as deterrents to the region’s appeal. Meanwhile, environmental advocates worry that such sweeping deregulation and favorable conditions for energy-heavy industries might compromise the EU’s ambitious climate efforts.
Speaking to industrial leaders at a conference in the Belgian port of Antwerp, EU Commission President Ursula von der Leyen remarked, “We wish to eliminate the barriers holding you back, so Europe can emerge as not just a hub of industrial innovation, but also as a powerhouse of industrial production.”
Wopke Hoekstra, an EU Commissioner, hailed the new strategy as a critical pivot for Europe’s economic landscape. He described it as the necessary countermeasure to curb the sustained downturn observed in the international market. “Our slow economic growth, reliance on others, and fragmented market structure increasingly pose challenges, especially in an era of unpredictable geopolitics,” he noted.
Vice President of the EU Commission, Valdis Dombrovskis, emphasized the significance of the plan, especially with the United States’ alliance seeming ever more unpredictable. He termed the initiative as a “clarion call” to liberate EU industries from excessive limitations and extend support where needed. “We can’t expect to thrive in a dangerous world with constraints holding us back,” affirmed Dombrovskis.
In this push for deregulation, there’s apprehension regarding resultant setbacks on climate pledges. Nonetheless, Belgian Prime Minister Bart De Wever underscored the importance of thoughtful decision-making, asserting, “Subjecting our industries to regulations that force them out of markets only to relocate to areas with laxer climate policies offers no advantage to either our economy or the climate.”
In its vast array of proposals, the commission suggested measures from simplifying bureaucratic processes to stabilizing energy costs. The initiative encompasses investment plans running into hundreds of billions and projected savings amounting to billions of euros. For instance, Hoekstra detailed plans for an “industrial decarbonization” bank, projected to amass up to 100 billion euros over the next decade. “With the infusion of private sector investments, this could potentially reach an impressive 400 billion,” he added.
These proposals are set to undergo evaluation by the EU parliament and the capitals of the 27 member nations, eventually paving the way for law and regulation enactments.
However, environmental bodies expressed concern, noting that the plans appear to predominantly favor fossil-fuel-reliant industries, such as steel and cement sectors. The European Environmental Bureau (EEB), comprising 180 NGOs across 41 nations, criticized von der Leyen for seemingly retreating from her 2019 European Green Deal commitments. The EEB stated, “The European Green Deal, once regarded as a pioneering movement, now seems skewed in favor of energy-intensive industries and large corporations. Industrial policy should align with public interest, not solely cater to industrial demands.”
Addressing these concerns, von der Leyen assured that neither environmental objectives nor social justice would fall by the wayside in her deregulation plans. “Our commitment to climate and social aspirations remains steadfast because our dedication to the social market economy is unwavering,” she concluded.
