German industry calls EU Clean Industrial Deal new basis of competitiveness

Germany's industry association BDI has called the EU's Clean Industrial Deal plan an important first step in the right direction to ensure the future competitiveness of the bloc's industrial sector.  "Only through targeted investment in climate-friendly industry and the pooling of European and national funds can the EU fulfil its role as a global pioneer in climate protection," said BDI head Peter Leibinger. "A comprehensive reduction in regulatory burdens must be an absolute priority so that Europe can once again become a robust international competitor," he added.

The Clean Industrial Deal, unveiled on 26 February, is the European Commission's strategy to strengthen the EU's industrial competitiveness and help it decarbonise. The European Commission president, Ursula von der Leyen, had promised to present it within the first 100 days of her administration taking office. The strategy comes at a time of growing geopolitical tensions and increased competition from the U.S. and China. Main elements of the plan include a focus on affordable energy, for example by speeding out the rollout of clean energy and accelerating electrification; boosting demand for clean products; mobilising capital to support EU-made clean manufacturing; and stepping up circularity.

The BDI supports the clear focus the plan has on developping of a fully integrated European internal energy market as a long-term measure, but called for short and medium-term relief from the next German government, for example by reducing the electricity tax to the European minimum level for the manufacturing industry or by co-financing transmission grid fees. The association also called for stable and reliably lower electricity prices, the consolidation of the European internal market, new free trade deals and bureaucracy cuts as important areas to address to make European industry more competitive.

"Europe must reinvent itself and once again focus on its strengths: the power of the internal market, the diverse research landscape and, above all, the innovative industrial base. Today, the EU has laid a good foundation for this," said Wolfgang Große Entrup, head of the German Chemical Industry Association (VCI). "The EU and the new German government must work together to eliminate the EU's competitive disadvantage in terms of energy prices as quickly as possible."

The European Commission also presented its "Omnibus package" – the union's plan to reduce bureaucracy and simplify its legal framework for sustainability, which was welcomed by both associations.

The European Union is under pressure to strengthen its industrial competitiveness and plot a viable pathway to a net-zero economy. While it made progress with its flagship European Green Deal in the last mandate (2019-2024) and later proposed the Green Deal Industrial Plan, there are still big gaps regarding industrial decarbonisation.