Czech Business Today

There is an intensive discussion in the EESC after the publication of Proposal for a regulation of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act).

The EU is no longer an international forerunner and continues to lose influence, power and competitiveness. Its industrial companies suffer from fatally high energy prices, complex regulation, and problems with access to raw materials, as well as distorting subsidies for industry in other global economies.

To cope with the geoeconomic, technological, demographic, and environmental developments, the EU must provide its industry with the best conditions to innovate, invest, employ, operate and trade. To this end, policymakers need to align different policies to fundamentally strengthen the competitiveness of EU enterprises, across all industrial sectors and ecosystems:

• increase and accelerate investment in research and innovation and enhance the development of skills, talent and entrepreneurship, to respond to the current and future needs of industry,
• facilitate industry’s access to energy and raw materials at reasonable prices, by enhancing well- functioning energy and raw material markets and favourable investment conditions,
• ensure the functioning of the Single Market and use its potential in enhancing and accelerating trade agreements based on reciprocity and a level playing field,
• promote faster permit procedures to enable investments in industrial production and infrastructure and to facilitate labour migration,
• make sure that the regulatory and fiscal framework is supportive for EU industry’s international competitiveness and its ability to effectively drive the digital and green transition.

Industry and its value chains form the foundation of the EU economy and prosperity. Industry is an integral part of the digital and green transition. To thrive and remain a global player, it needs favourable conditions to innovate, invest, employ, operate and trade. This requires a level playing field with international competitors, in terms of regulatory and fiscal burden and access to the markets of products and production resources. When reconciling different policy objectives, competitiveness must be given increased attention and weight.

Industrial companies play a decisive role in greening the economy and responding to the global need to combat climate change, environmental pollution and loss of biodiversity. They improve the environmental performance of their own operations and products and create solutions for reducing the environmental impacts of other businesses and whole society, with many “traditional” companies providing necessary raw materials and components or an innovation platform for new products and solutions.

Labelling individual sectors or product groups of industry as “greening” or “clean” ones, is thus not meaningful. All kinds of industries participate in the green transition and need policy conditions that maintain and strengthen their competitiveness while incentivising greening. Excellence and level playing field are key!

Source: David Sventek: EESC Member of Employers’ Group