In a text that lacks many important details and mostly new funding, the Commission yesterday submitted its proposal, which seeks to be a response to President Biden’s bailout package for US companies.

The Commission has proposed easing state aid rules, speeding up licensing procedures for energy transition projects, using the remaining funds from the Recovery Fund to support European industries, as well as putting more effort into developing related skills and forging stronger trade agreements.

EU warning

Commission proposals to be criticized by EU members. On Feb. 19, they want to form the basis of a European response to a $370 billion US package, known by the acronym IRA, which provides extensive subsidies and tax breaks for green technologies, but only when they are made in the US.

This caused alarm in the EU. for, admittedly, it runs the risk of attracting European industry to the superpower, leading to the de-industrialization of the Old Continent.

Thus, the Commission’s proposals are part of its efforts to compete with both the US and China, as the world’s two largest economies boldly subsidize new technologies for the transition to a green economy.

With regard to state aid rules, the Commission is proposing a temporary relaxation until the end of 2025 when it comes to investments in renewable energy or carbon removal technologies.

Loosening state aid rules, accelerating plans to transfer energy with funds left over from the Recovery Fund.

Considering that not all Member States have the same opportunities to support their industries, as Commission President Ursula von der Leyen acknowledged when presenting her proposals, it is proposed to use initially the 225 billion euros left over from the 800 billion euros of the Pandemic Recovery Fund. At the same time, the President of the European Commission plans to allocate 250 billion euros from the EU program for the same purposes. against the energy crisis to encourage industry to reduce emissions.

The thorny issue of funding had already caused friction long before concrete proposals were presented, as some countries pointed to the risk of widening inequalities between EU countries as Germany and France would be able to allocate more funds to help their industries, unlike countries such as Greece or Balkan countries. It is significant that of the 672 billion euros of state aid approved by the Commission for Economic Recovery after the Pandemic, 53% went to Germany and 24% to France. And the disagreements do not end there, but have already been expressed most strongly in any recently considered idea of ​​issuing a common debt to support European industry. In the next step, the Commission will propose the creation of a European National Sovereignty Fund to finance new technologies.

After all, in the coming months he is going to present his proposal to harmonize licensing procedures, the Clean Zero Industry Act, with a provision to speed them up on the technologies needed to achieve his goals against the climate crisis. : These include carbon capture and storage technologies, renewable energy, hydrogen production plants using renewable energy sources and the production of batteries for electric vehicles.

He will also introduce the Critical Raw Materials Act initiative, which aims to promote the extraction, processing and processing of raw materials of strategic importance.

This initiative is largely related to the efforts of the EU. achieve self-sufficiency in the rare earths and lithium necessary for the transition to electric mobility, and thus become independent from China, which has a near-global monopoly. To the same end, the Commission will seek new commercial agreements to ensure access to raw materials and markets.

Clean energy

More generally, the Commission’s proposals are part of the EU’s efforts. to secure a share of the global clean energy market, which, according to the International Energy Agency, should triple by 2030 to $650 billion and double jobs in the sector. According to the latest figures, EU green industry jobs already number at least 4.5 million, up from 3.2 million in 2000. In particular, the battery industry is expected to need to increase its workforce by 800,000 by 2025.