by Michalis Psilos

 

More subsidies, less regulation: The EU has to invest billions in green technologies to strengthen Europe as a business hub. According to Commission President Ursula von der Leyen, European Union is going to invest hundreds of billions of euros in climate-friendly technologies to save Europe as an industrial location. Von der Leyen proposed loosening state aid rules for investments in renewable energy or decarbonising industry, on a temporary basis, until end 2025.

 

The focus is mainly on manufacturers of wind turbines, solar cells, batteries, electronic cars and hydrogen industry. The International Energy Agency estimates that the global market for clean energy solutions will triple to around $650 billion by 2030. The number of jobs in this sector should more than double.

 

 

Europe as a business location is gradually losing its competitiveness . After 11 months of conflict, Europe is paying a high price for this. The energy crisis is not over and high costs are worrying the business world. However, for the time being, a relative relaxation of the energy pressure is visible.

 

European GDP has been sinking for 15 years compared to the US - and very unevenly between European partners.European industry has begun to migrate gradually to other regions of the world, such as America. In the last few days, dark clouds are getting thicker: Biontech has announced that it will completely withdraw the development of anti-cancer drugs from Germany and move the facilities to Great Britain. Ford Motor Company has announced that the development of electric cars will be done exclusively in the US,in the future. Bayer has announced that it will move its entire pharmaceutical business to the US.

 

 

The European Commission is hoping member states will back its plan at a Feb.9-10 summit but it faces a hot debate. The problem is that not all countries of European Union can spend as much money on this, as Germany or France, for example. While recognising that not all EU countries will be able to offer subsidies to the same extent as France or Germany, for example, Von der Leyen wants to avoid  greater inequality In the short term, unused loans from the Corona relief fund should therefore be leveraged and put to other uses. This is a bridge. In the long term, Brussels authorities consider a "sovereignty fund" necessary, which Germany has so far flatly rejected. Certain EU members insist that this plan could eventually entail further joint borrowing - which one senior EU diplomat said was "very close" to being ruled out. Von der Leyen didn't say how much money is needed to spend.