EU executive plans a major reset of economy as critics fear climate will
suffer
 [February 27, 2025] By
RAF CASERT
BRUSSELS (AP) — The European Union executive on Wednesday announced
plans for a major revamp of its economic strategy to meet demands of the
bloc's captains of industry who have long complained about excessive
taxation, sky high energy prices and an overbearing bureaucracy that
makes the bloc unattractive.
At the same time, environmental groups say that far-reaching
deregulation and the boosting of conditions for energy-intensive
companies will come at the cost to the EU's ambitious climate targets.
Speaking to a conference of industrial leaders in the Belgian port city
of Antwerp, EU Commission President Ursula von der Leyen said that “we
want to cut the ties that still hold you back. So that Europe can be not
only a continent of industrial innovation, but also a continent of
industrial production.”
EU Commissioner Wopke Hoekstra called it “a game changer for Europe’s
economy," adding the package of plans was the reaction needed to reverse
years of decline in the global marketplace.
“We’re all too aware that our slow economic growth, our dependencies and
the fragmented market we still operate in are increasingly a problem,
particularly against a backdrop of volatile geopolitics,” he said.
EU Commission Vice President Valdis Dombrovskis said that with the
United States becoming a more uncertain ally by the week, the plan
should be seen as a “call to action” to set EU industries free from
excessive constraints and provide them with aid where necessary.
"Put simply, we cannot hope or expect to successfully compete in a
perilous world with one hand tied behind our backs," Dombrovskis said.
Under such conditions there are fears climate commitments could suffer,
but Belgian Prime Minister Bart De Wever, who spoke ahead of von der
Leye,n insisted choices had to be made.
“There is no point in subjecting our industries to regulations that push
them out of the markets, forcing them to relocate to regions with less
strict climate policies. Neither our economy nor the climate benefits
from such an outcome,” he said.
[to top of second column] |
European Commission President Ursula von der Leyen speaks during the
European Industry Summit in Antwerp, Belgium, Wednesday, Feb. 26,
2025. (AP Photo/Virginia Mayo)
 In the package of plans ranging from
cutting red tape to containing energy prices, the executive
commission came up with investments totaling hundreds of billions
and savings totaling ten of billions of euros (dollars).
For example, Hoekstra said, plans include a
“industrial decarbonization” bank, which could raise up to 100
billion euros in the next 10 years. “But then, if you leverage that,
if you put private sector money next to that, you could easily add
up to a number of 400 billion.”
The plans will now go to the EU parliament and the capitals of the
27 member states for further assessment before they can be turned
into laws and regulations.
Environmental groups already rang the alarm, arguing the plans stand
to profit especially fossil fuel intensive companies like steel
plants and cement factories.
The European Environmental Bureau, which groups 180 nongovernmental
organizations in 41 countries, said that Commission President Ursula
von der Leyen had effectively reneged on her 2019 European Green
Deal, which was long seen as a global standard-bearer.
“The European Green Deal was hailed as a ‘man on the moon’ moment,”
the EEB said in a statement. “Today, the narrative seems tailored
primarily to energy-intensive industries and big corporations. But
industrial policy should prioritise public interest, not just
industry demands.”
Von der Leyen said she would make sure that the environment, or
social justice, wouldn't suffer from her deregulation plans.
“Let me be clear. Our climate and social goals do not change.
Because our commitment to the social market economy is unwavering,”
she said.
All contents © copyright 2025 Associated Press. All rights reserved |
