According to the President of the European Commission, Ursula von der Leyen, the EU should focus more on investment and innovation. This allows Europe to invest more money in its industries, especially in clean technologies. Brussels is ready to set up a special fund for this and to loosen state aid rules. You said so at the World Economic Forum in Davos, Switzerland.
Von der Leyen argues that the EU must become more investment- and innovation-friendly to compete with China and the US. Both countries heavily subsidize their own companies, putting the EU at a disadvantage. Brussels is in talks with “American friends” to find a solution, Von der Leyen said. He warned China that the EU will not hesitate to launch an investigation if it believes markets are distorted by such subsidies.
commercial powers
The debate on how the EU should compete with other trading powers without disrupting the internal market has occupied member states for a long time. France, in particular, wants strong action and supports the granting of “massive state aid” for strategic sectors, Minister Bruno Le Maire (Finance) said in Brussels.
The EU executive board has announced that it will present proposals, but first it would like to collect as many whistles as possible in the same direction. European Commissioner Margrethe Vestager (Competition) has sent Member States a questionnaire on the revision of European rules on state aid, to which she expects a reply by 25 January. In your letter you ask for “a strong European response”. You also propose to set up a common fund to support less wealthy Member States. According to Von der Leyen, it will take “some time”.
Kaag
Countries like Germany and the Netherlands don’t see much in a new fund, for which the committee may want to borrow again on the capital market. Finance Minister Sigrid Kaag did not want to respond to all of Brussels’ plans. The Netherlands do not want a new fund while there is still a lot of unused money in Brussels, but they are awaiting the commission’s proposal. “We don’t have a definitive position yet,” he said.
Source: BNR
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