The global race for industrial leadership is intensifying, and Europe risks falling behind. While the European Commission’s Clean Industrial Deal (CID) is a positive step, its approach must be refined to succeed in today’s competitive environment.
The CID aims to strengthen Europe’s industrial base while driving the green transition. This is not just about reducing emissions; it’s about ensuring Europe’s survival in a rapidly changing and unpredictable global landscape.
Industrial strength is essential for Europe’s resilience, security, and sovereignty. Europe cannot afford to depend on others for energy, raw materials, or defense. Industries that cannot thrive within the EU cannot protect the EU.
The CID recognizes this need. It focuses on energy-intensive sectors, clean technologies, and strategic value chains. I support efforts to lower electricity costs through grid expansion and power purchase agreements (PPAs), speed up permitting, and improve the investment climate, especially through the European Investment Bank and InvestEU.
However, certain elements of the legislation need further review. The European People’s Party (EPP) emphasizes a technology-neutral approach, allowing member states to select their own clean energy mix to meet climate targets. This will ensure innovation is not hindered, and the most effective technologies can be applied across regions.
Additionally, simplifying regulations is crucial to enhancing EU competitiveness. Reducing bureaucracy will help businesses thrive and innovate, creating a better environment for growth.
The CID plans to allocate over €100 billion to support clean manufacturing within the EU. It’s essential that these funds are directed to the right, market-driven projects quickly and efficiently. Reducing red tape will allow more companies to benefit from this opportunity.
As the European Parliament’s rapporteur in the Budget Committee for the Omnibus II regulation, which focuses on the InvestEU loan guarantee program – a key pillar of the CID – I am committed to ensuring the program receives more funding and is accessible to businesses.
I also support the CID’s focus on circularity. The Circular Economy Act, along with the goal of making 24% of materials circular by 2030, is vital for reducing reliance on global supply chains and creating high-quality jobs. Finland, with its clean energy and innovative circular economy solutions, is well-positioned to lead this transition.
However, we must be cautious about the financial risks. The proposed funding model heavily relies on revenues from the EU Emissions Trading System and the Carbon Border Adjustment Mechanism. While these should support long-term industrial renewal, we must find ways to increase funding stability. Sustainable and predictable investment models are essential.
Most importantly, we must avoid large-scale public subsidies, which could distort the single market, undermine competition, and reward inefficiency. Instead, the focus should be on creating enabling conditions: smart state-aid rules, regulatory certainty, and a unified internal energy market. A seamless, competitive internal market is Europe’s greatest asset.
The CID also includes promising initiatives like the European Critical Raw Materials Centre and a “Made in Europe” procurement framework. These measures can enhance strategic autonomy, as long as they are implemented swiftly with clear, measurable goals.
Finally, the regulation rightly highlights the importance of skills. Without a skilled workforce in strategic industries, even the best industrial strategy will fail. The proposed Union of Skills must meet the needs of both businesses and workers.
The Clean Industrial Deal has the potential to reshape Europe’s industrial future, but success will not come from good intentions alone. We must act decisively to ensure it strengthens the single market, encourages private innovation over public reliance, and delivers tangible benefits for both citizens and companies.
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