Production hall of an industrial enterprise – illustrative photo.
Brussels – In response to massive American and Chinese state subsidies, the European Union is preparing to allow temporary and limited state support for companies making up the so-called green economy. At an extraordinary summit in Brussels last night, the leaders of the member states agreed on the outlines of a plan to support the economies, but left the details, including possible financing, for the next summit meetings. France and Germany in particular sought the widest possible support for companies, but other countries urged caution. Czech Prime Minister Petr Fiala said after the meeting that support for industry must not be a subsidized plant.
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European countries are currently trying to cope with the expected effects of the unprecedented hundred billion investments that the United States is preparing to support the fight against climate change. At the same time, the EU wants to help companies with the effects of high energy prices and to motivate them to switch to renewable sources more quickly. sectors strategic for the green transformation of the economy. At the same time, however, it will maintain equal conditions in the EU single market.
It is precisely the inequality of state aid allowed so far that many EU states point to. Roughly three-quarters of the money pumped into economies by the states as part of the relaxation of the rules so far was supported by Germany and France, which is the main supporter of the new support. However, other politicians at the summit expressed a more cautious approach.
“EU leaders recognized that industry support must not become a subsidy race between individual countries,” Fiala told reporters after the meeting, according to which state support must not distort the conditions of the single market .
The summit agreed that EU countries will simplify administration and speed up access to financing for companies from the aforementioned strategic areas, which include renewable energy technologies in particular.
Draft rules, which should keep the EU at the top of their world production, the European Commission should present in March. According to its head, Ursula von der Leyen, the leaders will have them on the table at the next summit at the end of March, where they should advance the discussion on the financing of economies more significantly than now.
