Politics

EU plans to boost industry by cutting red tape criticized by green groups

Photo by: Arterra/Universal Images Group via Getty Images
Photo by: Arterra/Universal Images Group via Getty Images
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Plans to slash bureaucracy and regulation are at the heart of a broad new industrial strategy unveiled by the European Union.

The new proposals, dubbed the ‘Competitiveness Compass,’ have been met with criticism by environmental groups, who claim they could weaken the bloc’s commitment to fight climate change.

The wide-ranging strategy aims to make Europe a more attractive place for industry and innovation, with the authorities admitting that the continent has “not kept pace with other major economies.”

One key measure is the proposal to lighten the paperwork load on small and medium-sized businesses by 35%, and other firms by 25%, by making the process of reporting to the authorities simpler.

Details are set to be laid out in February, but officials confirmed to the Reuters news agency that the plans include changing the rules around financial sustainability, due diligence and adherence to climate-friendly ambitions.

Environmental concerns

Some analysts have claimed that the deregulation drive will, in practice, lead to the reversal of recently introduced climate goals as part of the EU’s much-debated Green Deal.

In a press conference on Wednesday, the European Commission’s president denied suggestions that its carbon emissions targets – a 55% reduction by 2030 and zero by 2050 – would be undermined.

“We stay the course. The goals are cast in stone,” Ursula von der Leyen said.

“The goals stay, the objective stays, but we want to reach it better and faster. And for that, we have to reduce complexity.”

A planned Clean Industrial Deal is one pillar of the new strategy, which the commission says “will set out a competitiveness-driven approach to decarbonization” while also attracting industry – including energy-intensive sectors – to the EU.

It also suggests ways the bloc can intervene “to facilitate access to clean, affordable energy,” which it identifies as a key issue that is currently holding the economy back.

‘Blind deregulation’

But Climate Action Network Europe (CAN Europe), an environmental NGO, said that the new strategy merely “echoes” the bloc’s objective of becoming a carbon neutral economy and doesn’t set a course for an industrial transition and a fully renewable energy sector.

“The Competitiveness Compass recognizes the problem… but fails to provide an ambitious, coordinated and sustainable solution,” said Greg Van Elsen, CAN Europe’s spokesperson on industrial policy.

“If the EU wants to lead in the net-zero economy, it must recalibrate and back its progressive industries, including grid manufacturers, battery producers, and green steel, with a clear plan: joint investment, smart regulation, energy transition and strong climate targets.

“A blind deregulatory drive won’t get us there.”

‘Simplification shock’

Von der Leyen and her team is under pressure to boost Europe’s economy in light of potential sweeping changes to international trade following President Donald Trump’s return to power in the United States.

Stéphane Séjourné, the commission’s vice-president, said that the continent’s economy is in for a “a simplification shock without affecting environmental targets,” France24 reported.

“Competitiveness in every euro that we will spend, and in every initiative we will propose,” Séjourné added.

“From this ambition comes a threefold work program: simplify, invest, and accelerate on our economic priorities.

“The compass must signal a change of mindset for Europe and Europeans. It makes Europe more predictable, while maintaining the course of our European model – decarbonized, social and respectful of our values.”

Despite the commission’s insistence that carbon neutrality goals will be respected as part of its new industrial vision, some analysts say the anti-climate change agenda is taking a backseat.

European Parliament elections last year returned a less green-friendly European Parliament, as farmers led a wave of protests opposing the commission’s Green Deal.

There is also reluctance among the EU’s member states to adopt environmental policy, Reuters reported.

It says that Poland is among the countries wanting to delay a planned internal carbon market for transport and heating fuels, while Italy and the Czech Republic are opposed to plans to phase out combustion engine cars by 2035.
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