Resolution on an EU strategy to boost industrial competitiveness, trade and quality jobs
The European Parliament adopted by 310 votes to 155, with 100 abstentions, a resolution on an EU strategy to boost industrial competitiveness, trade and quality jobs.
The text adopted in plenary was tabled by the S&D, Renew, Greens/EFA groups and Members.
The resolution stated that in a changing geopolitical world, it is vital to strengthen European industrial competitiveness, to reduce European dependence on third countries for critical and strategic materials, products and technologies, as well as to provide for affordable, clean and secure energy for its industries.
Parliament welcomed the Commission communication of 1 February 2023 entitled ‘A Green Deal Industrial Plan for the Net-Zero Age’. It considered that the European industrial strategy should be designed both for securing European leadership in clean energy technologies and for improving the existing industrial base and supporting its transformation in the future to provide high-quality jobs and economic growth for all Europeans in order to achieve the objectives of the Green Deal.
The resolution stressed the importance of enhancing the EU’s manufacturing capabilities in key strategic technologies, such as solar and wind energy, heat pumps, electricity grids, batteries, long-duration energy storage, electrolyser manufacturing for renewable hydrogen and pre-fabricated sustainable building materials. It also underlined the importance of the Commission fully developing the Transition Pathways, setting out the actions and support measures needed to ensure all sectors maintain their competitiveness, while decarbonising in order to contribute to the Union’s climate and Green Deal objectives.
A simplified regulatory environment
The resolution stressed that European standards play a very important role in the functioning of the single market and can enhance the competitiveness of European industry, reduce costs and improve safety, as well as increase productive and innovative efficiency. It emphasised the importance of a strong European presence in the international standardisation bodies.
Parliament highlighted the need to ensure fast permitting procedures and predictability to set up new projects aiming to use clean and renewable energy sources and improving the sustainability of existing ones as quickly as possible, while reducing the administrative burden to a minimum and in full compliance with the regulatory framework. In this context, Parliament encouraged the Commission and the Member States to process applications for supporting measures related to the planning, construction and operation of such projects as rapidly as possible.
Energy and dependencies
Members called on the Commission the Member States to ensure energy supplies for next winter and to come up with additional and ambitious plans, to take all necessary measures to accelerate production capacities for affordable, secure and clean energy to be made available to EU industries and to increase energy savings and energy efficiency measures. They underlined the importance of kick-starting the hydrogen market, while working towards clean hydrogen, by assessing the role of its various types, making its production faster and less bureaucratic, and developing a plan to create the needed infrastructure as a matter of urgency.
Faster access to sufficient funding and the European Sovereignty Fund
The resolution highlighted that new political initiatives, objectives and tasks funded through the EU budget, including both EU-wide and cross-border projects, must be financed with additional fresh money. Parliament stated that the MFF mid-term revision is a timely and unique opportunity to incorporate any new funds into the EU budget.
Given the recent geopolitical challenges that the Union has been facing, Parliament stressed that the EU must take all necessary measures to ensure its open strategic autonomy, including in defence. The Fund should finance cross-border energy infrastructure, avoiding lock-in effects on fossil fuels, as well as funding renewable energy production and energy efficiency, reinforcing the path towards the European Green Deal, as well as cybersecurity, industrial competitiveness, the circular economy, food security and sustainable development. It should also increase European investments across the Union in key strategic sectors, including, among others, health, raw materials and space.
State aid
Parliament stressed that the Union's state aid rules should be simplified and allow for flexibility in order to achieve Europe's policy objectives. However, any flexibility should be targeted, temporary, proportionate and consistent with the Union's policy objectives. Indeed, a lack of coordination of State aid rules across Europe would hamper economic recovery and jeopardise the existence of the single market. The Commission should take into account the potential effect of any reform of State aid rules on the single market.
Enhanced quality jobs and skills
The Commission and the Member States are urged to make sure that the EU industrial plan can help to achieve the just transition and its objectives, including the creation of quality jobs with fair working conditions and good pay, the promotion of collective bargaining and respect for collective agreements.
Parliament called for the EU industrial plan to create synergies and connections with mainstream education policies owing to the high impact of this sector. Coordination is needed with the European strategy for universities in order to foster cooperation with the industrial ecosystem. The importance of vocational training is stressed in order to have qualified staff with green and digital skills in the industries.
Open and fair trade for resilient supply chains
The resolution recalled that one in five jobs in the Union depends on exports. Therefore, it called on the Commission, the European External Action Service and the Member States to promote new economic partnerships with democratic countries, so the Union and its partners can face climate change and the consequences of the Russian aggression together.
The Commission should assess current dependencies and find alternative sources to diversify Europe’s supply chains for critical technologies and raw materials. It should also adopt a stronger stance on tackling unfair global competition, such as that caused by unjustified State aid. Members called further on the Commission to propose a ‘new generation of partnerships in the world’, which would make full use of the EU’s economic and political leverage with its current trading partners to ensure the Union gets the most for its industry exports and imports, while promoting its values and standards, not least human rights and the European Green Deal.
The US Inflation Reduction Act
Expressing concerns about the provisions of the US Inflation Reduction Act (IRA), which discriminate against EU companies, Parliament called on the Commission and the Member States to swiftly assess the potential impact of the IRA on European industry and its competitiveness, taking into consideration the current challenges as regards stretched supply chains and the high costs of energy, transport and raw materials. The Commission is also called on to, inter alia, work with the USA to make the IRA’s implementation as compatible with European interests as possible.