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Industrial policy: Will the EU have the money to finance its ambitions?
(EurActiv, 24 Mar 2023) The European Commission put forward ambitious proposals last week to position the EU as a global leader in green industry growth, yet how the industrial development should be financed on a European level remains an open question.
The Commission presented the Net Zero Industry Act and the Critical Raw Materials Act last Thursday (16 March), specifying its goals to establish an industry for climate-friendly technologies in Europe.
These ambitious legislative files have one key objective: recentre the EU as a green industry powerhouse along the entire value chain, from mining to solar manufacturing.
Financing has so far focused on the national level and the short-term – and the Commission relaxed the state aid framework earlier this month and simplified companies’ access to public money within the limits of existing budgets to support green tech investments.
However, extending national subsidies through relaxed state aid rules bears considerable risks, as it disproportionally benefits larger member states with more financial firepower and could lead to a subsidy ‘race to the bottom’ within the EU.
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EurActiv, 24 Mar 2023: Industrial policy: Will the EU have the money to finance its ambitions?
