The political tensions of recent weeks in the European Parliament have finally been resolved with the support of MEPs for the new College of Commissioners designed by the head of the Community executive, Ursula von der Leyen. The urgency to start working in an increasingly polarized world characterized by greater geopolitical instability is now on the agenda for the next five years. The idea is to increase the penetration of clean technologies in the EU as part of efforts to boost the bloc’s industrial competitivenessso as not to lose sight of powers like the United States and China.
“Europe now faces a clear choice. A choice that will shape our work for five years and define our place in the world for the next fifty years. The choice comes down to whether we allow ourselves to be carried away by events and world around us or if we unite and we build our future for ourselves“, declared the head of the Community Executive before the European Parliament which had to support her in her mandate in July.
The entire strategy of the legislator has a lot to do with industrial competitiveness. High energy prices are precisely one of the factors hindering the bloc’s competitiveness in the race against the United States and China. Although the EU’s delay in this area is not new, such a situation dates back to the 1980s. This is now a competition in which green energies will have a lot to say, after so much. Washington and Beijing provided subsidies to their respective industriess. Added to this is the return to the White House of Republican Donald Trump, who clearly expressed, during the campaign, his promise to promote the extraction of oil and natural gas, something that Europe lacks and with which it can’t compete.
This is why Von der Leyen pledged this week before the European Parliament to advance European competitiveness. “I can announce that the first major initiative of the new Commission will be a Compass for Competitiveness. This compass will mark our work for the rest of the legislature. The Compass will be based on the three pillars of the Draghi report. The first is to fill the innovation gap with the United States and China. common decarbonization and competitiveness plan. And the third is to increase security and reduce dependencies. »
The German will begin the legislature by putting into practice the recommendations of former Italian prime ministers, Mario Draghi and Enrico Letta, who, to boost the competitiveness of the EU, recommended strengthening the ecosystem of technological, innovative companies and startups. To achieve this, it is no less important to progress in the capital market union with which it seeks to dissipate the fragmentation businesses faceboth at the regulatory and bureaucratic level, as well as the difficulties in raising financing in 27 different markets, compared to just one in the United States.
“Our freedom and sovereignty depend more than ever on our economic strength. Our security depends on our ability to compete, innovate and produce and our social model “It depends on a growing economy that faces demographic change,” the German said this week.
Already in July, he had outlined a plan whose ambition was to be realized during the first hundred days of his mandate, that is to say from Sunday this week. After the energy crisis resulting from the war in Ukraine, the EU had to take the lead to advance the transition to green technologies. As an extension of this plan, Von Der Leyen will present his Clean Industry Pact. This is a continuation of the European Green Deal of the previous legislature, which involves putting into practice the objectives of decarbonizing the economy by mid-century.
The idea, as explained in July, is to channel necessary investments into green infrastructure and industry, accelerate permitting for renewable projects and reduce consumers’ energy bills. It is about moving towards this objective of the European Green Deal, namely achieving a carbon-free economy in 2050 and this, by taking the reins of the energy consumed in the community bloc, after having learned the lesson of the blackmail exercised by Russia following the invasion of Ukraine.
Because geopolitical uncertainty is there. The Russian military invasion of Ukraine puts the EU on edge and has a support system deployed towards kyiv which does not prevent it from guarding its own borders. He deployment of troops to Ukrainian borders by North Korea Not that this exactly simplifies the situation. And Beijing, far from positioning itself in the conflict, acts as a supplier of military equipment to the Kremlin. Added to this is the instability in the Middle East, which creates a delicate international panorama.
In this context, the EU will give wings to its own defense industry during this mandate. “Europe cannot determine elections around the world, but it can choose invest in the security and defense of their own continent”indicated the German in July. At this stage, it is considered necessary to increase spending in this area, as well as to create a single market for the defense sector or to create projects at community level oriented towards security.
Trump’s return jeopardizes relations with Washington
Trump’s return to Washington is being presented as an earthquake for the EU. Its main trading partner will have as president a politician who has announced tariffs of up to 20% to European products. Trade tensions The experience experienced during the previous Republican legislature threatens to be repeated and could go further. This is why the EU must reflect on the need to break its dependence on Washington, mainly in the areas of security and defense, but also in the energy area. Furthermore, Brussels must pay attention to the repercussions that change in Washington could have on global dynamics.
The Republican’s promise is also to impose customs duties of up to 60% on imports from China. The context is simple, in reality, it will be a question of slowing down the economy of the Asian giant. But the implications of such an approach go further: Brussels will have to ensure that Chinese exports do not go to the United States be redirected to the EU and, furthermore, the blow this will bring to the Community economy.
