Lhe relationship between competitiveness and the ambitions of the European Green Deal is currently at the heart of the European Union (EU) agenda. The EU’s flagship policy is currently facing a barrage of attacks, not only from farmers, who have taken to the streets in France, the Netherlands, Germany and elsewhere to protest the demands imposed on them, but also from leading figures within the EU, including the Belgian Prime Minister, Alexander De Croo.
Mr De Croo, like others in the EU-27, has proposed deregulating green policies, as part of a campaign aimed at Belgium’s struggling chemicals sector, which has played a key role in the Antwerp declaration in favor of a European industrial pact. However, such a change and dilution of the Green Deal carry risks. The deregulation of green policies endangers Europe’s competitiveness.
As Ursula von der Leyen said, before her election as Commission President in 2019, “the European Green Deal is [la] new growth strategy [de l’UE] », and green policies have already created business opportunities in Europe. Some, like offshore wind, are well established. Other innovations are already starting to bear fruit, such as energy transmission technologies or the production of low-carbon steel, notably ” green steel » Swedish, and various circular economy solutions.
Create favorable conditions for innovation
Current concerns about competitiveness are understandable, especially when it comes to energy-intensive industries. As indicated by the European Commission in its rannual contribution to the single market and competitiveness, published on February 14, there is still much to do: more investment in research and innovation, a better functioning of the energy market and strengthening of skills. But a modern industrial policy cannot consist of protecting all existing sectors of the economy. It must also create favorable conditions for innovation and new arrivals.
This is why a simplistic view of regulation can harm competitiveness. The European Commission has shown that well-thought-out regulations can play a key role in the development of innovative green technologies. Just look at how fuel economy standards for vehicles have led to new lightweight solutions, or the rapid development of renewable energy technologies. This approach has the potential to create markets for other innovative technologies, such as low-carbon steelmaking.
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