EU Industry Divided on Financing Solutions Amid Economic Talks
- EU industry ministers acknowledged the economic challenges facing Europe, including low productivity and high energy prices.
- Discussions on extending post-pandemic state-aid rules revealed a lack of consensus, with Germany supporting the extension while smaller member states opposed it.
- The ongoing debate highlights the sensitivity of financing issues within the EU, indicating a need for a unified approach to address investment needs.
During a meeting in Brussels on September 26, EU industry ministers discussed the economic challenges facing Europe, as highlighted by former European Central Bank President Mario Draghi. They acknowledged that low productivity, high energy prices, and excessive administrative burdens hinder Europe's competitiveness against global powers like China and the US. Despite this recognition, the ministers could not agree on how to address the bloc's significant investment needs. The conversation centered around the potential extension of post-pandemic state-aid rules, which Germany strongly supports. However, smaller member states expressed strong opposition, leading to a lack of consensus. Hungarian Minister of Industry Máté Lóga noted that the discussions resulted in only a reflection on the issues rather than actionable solutions. The debate also revealed deep divisions among member states regarding the financing of future investments. Some ministers, like Austria's Martin Kocher, argued against extending the EU budget or funding it through common debt, while others, such as Spain's Jordi Hereu i Boher, called for a unified European policy to support reindustrialization efforts. This ongoing discord highlights the sensitive nature of financing discussions within the EU, emphasizing the need for a cohesive strategy to address the bloc's investment challenges and ensure competitiveness in the global market.