Koenders initially calls Joe Biden’s initiative positive due to the climate imperative, but notes that the US and Europe are part of the battle for raw materials, markets and manufacturing. “They’re competitors.”
According to Koenders, Europe should be sharper about this and ask itself what its dependencies are; ‘Where are the vulnerabilities, how can we avoid being squeezed between China’s growing power and a policy of big subsidies.’ ‘We also have state aid schemes in Europe. Now Von der Leyen also wants to actively initiate subsidy flows into Europe. It is important that you sit down very quickly with the United States without illusions and naivety.’
According to Koenders, the Americans have a strong competitive advantage over Europe with their cheaper energy, and at the same time they have “very tough legislation to reduce dependence on China.”
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Loosen state aid rules
According to Koenders, Europe must ask itself what the implementation of the IRA will actually mean. “We’ve been presented with a fait accompli because that law is hard to change.” According to Koenders, one possible answer is that Europe will also ease state aid rules, which will primarily benefit countries with deep pockets like France and Germany. ‘The question is where does the Netherlands stand in this. That battle is on, Holland has to position itself within it.’
And the Netherlands shouldn’t wait too long to do so, Koenders thinks, things are going too slowly and too hesitantly at the moment. Although Minister Kaag says he is fighting for a good balance between European and national interests, Koenders stresses the importance of starting early. “We are already late.” In particular, it is the role of government in its relations with the market; “The hesitant attitude of the Netherlands has to go, it’s going very fast.”
Listen to the full episode of BNR’s Big Five here
According to Koenders, the Netherlands should look at where the vulnerabilities are and be much more “precise”. “If industrial policy is involved, let’s see what exactly that means in terms of the amount of money, which sectors are included and which are not.” Finally, Koenders indicates what, according to him, should be the two most important spearheads in such an industrial policy: reasonable digitization and greening.
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