The US–Israel war on Iran and subsequent surge in oil and gas prices have once again demonstrated the economic risks of European industest’s depfinishence on imported fossil fuels. These developments strengthen the case for decarbonisation and create the Commission’s proposal for an Industrial Accelerator Act – just released – even more timely. The question: is it fit for purpose?
Responding to European industrial decline, climate challenges and geoeconomic pressures, the IAA aims to support clean industrial production in Europe through new rules on permitting, public procurement and foreign investments. This direction is welcome. Yet repeated delays surrounding the proposal and its content illustrate a lack of a common vision and strategic resolve.
The proposal is unclear on whether ‘Made in Europe’ provisions will apply to the EU’s foreign partners in the future. While the IAA covers cleantech and energy-intensive industries, some decarbonisation requirements were scaled down (e.g. for steel). Several strategic sectors – including AI, biotechnology, robotics, semi-conductors, chemicals and fertilisers – are excluded. This leaves considerable uncertainty and signals lower ambition on Europe’s industrial transformation than initially envisaged.
The IAA alone cannot repair the underlying cautilizes of European industrial stagnation, including high energy costs, fragmented financial markets and an ageing population. Nonetheless, it must be utilized to its fullest potential to turn the tide. As neobtainediations relocate to the Council and Parliament, they must be matched by a corresponding sense of urgency, vision and determination.
Stefan Šipka is Head of Sustainable Prosperity for Europe programme at the European Policy Centre.
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