We face a major challenge that Europe must meet in order not to be completely de-industrialized, said SEB President Dimitris Papaleksopoulos, speaking on the sidelines of a Japan External Trade Organization event during Prime Minister Kyriakos Mitsotakis’s visit to Tokyo. Mr. Papaleksopoulos noted that the US IRA provides great incentives for industry by attracting European businesses to relocate. He acknowledged as positive that Europe has recognized the risk and is moving dynamically, but stressed that it needs to overcome significant obstacles and internal divisions, as the network of required legal provisions is important and extensive.

In addition, according to him, in Europe, along with incentives for investment in the energy transition, there are disincentives that create costs for the industry through the cost of emissions. Instead, the US has decided not to impose an emissions fine, and given that the cost of energy in the US is also much lower, production there has become very competitive. “A balance must be found in Europe and decisions must be made to invest industrial investment in green growth.”

The EU must accept the challenge not to be de-industrialized, said SEB President D. Papaleksopoulos.

Industry, commenting on the proposals of the Commission, noted that there are some points that are of interest, but express serious doubts about whether their implementation can make Europe an attractive place for industry.

Among other things, they note that it is not clear what he considers green investments and technologies, does not provide for new funding, and the announcement of a new European Fund does not come with a forecast of the funds it will have, as well as a timetable for its creation. They also note that in much of the text the Commission is trying to defend the policy it has already established and which has so far led to a reduction in European industry.