Debate: An EU strategy to boost industrial competitiveness, trade and quality jobs
Date: WEDNESDAY, 18 JANUARY 2023
Speaker: Jessika Roswall 
Language: EN

Now on the important topic of European competitiveness, the multiple crises we have faced in recent years have showed us that Europe needs a strong, efficient and forward—looking approach on its economy. Numerous disruptions in global value chains and a significant increase of energy prices have a very negative impact on the EU economy. In addition, the US Inflation Reduction Act is raising concerns across Europe. Although the ambitious green objectives are to be welcomed, its discriminatory provisions could – depending on how the law is implemented – have considerable negative effects on EU industry. It is clear that further engagement with our US friends is needed to minimise the negative consequences for EU industries, and I encourage the Commission to continue this dialogue. These different challenges call for a smart European policy response, based on the forthcoming Commission analysis of how the Inflation Reduction Act will affect European industry. Most importantly, we need to safeguard Europe’s economic, industrial and technological base and preserve the global playing field. To do so, we must continue to accelerate the green and digital transitions of our economy. Fortunately, European companies are global leaders in green technology. Going forward, we must continue to provide the right conditions for our companies to uphold this position and to push the boundaries further. Member States are asking for a more targeted industrial policy strategy that support this. Energy costs in Europe are high in a global comparison, which makes it difficult for European companies to compete with global peers. Europe needs more cheap, green energy in order to get that, so we must continue rolling out the REPower EU plan. In Europe, we have several assets: skills, cutting—edge research institutes and universities, first—rate infrastructure and our single market as the backbone. We should continue to build on these foundations. Our main goal should be to transform Europe’s strong fundamentals into more job opportunities, increased productivity, and stronger, more sustainable growth. On Monday, we celebrated the 30th anniversary of the single market. In this context, let us not forget that the single market is a key asset, with clear benefits for European citizens and industries. State aid can in some cases be useful to nudge development and innovation in a desired direction. But we should make sure that our rules are coordinated, balanced and based on proper analysis. And as many have pointed out, no one would gain from a subsidy race, neither between the EU and the US, nor between EU Member States. Finally, as suggested by the European Council conclusions from December, there is also a long—term work stream in relation to this. In other words, the short—term actions to mitigate consequences of the Inflation Reduction Act should not be counterproductive and pose an obstacle to long—term competitiveness. These work streams need to be aligned. The long—term competitiveness and productivity strategy is about the EU taking charge of its attractiveness and standing in the world economy. Businesses have long—term perspectives and therefore need predictable, competitive framework conditions for their investments. Ultimately, this is what will decide where future economic growth will take place. Thank you very much for your attention. I am really looking forward to this debate.