威力彩玩法

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14 Sep 2023, 13:36
Benjamin Wehrmann

France, Germany vow to cooperate on industry transformation, back EU probe into Chinese EVs

"The Franco-German friendship in action" - French economy minister Le Maire (centre) posted a picture of himself together with German counterpart Robert Habeck (left) and finance minister Christian Lindner on social media outlet 'X'. Source: X / Bruno Le Maire
"The Franco-German friendship in action" - French economy minister Le Maire (centre) posted a picture of himself together with German counterpart Robert Habeck (left) and finance minister Christian Lindner on social media outlet 'X'. Source: X / Bruno Le Maire

Increasing international competition in the transition to a more sustainable economy will require tight-knit cooperation among EU countries and a tough stance on defending the bloc from unlawful trade subsidies abroad, the economy ministers from Germany and France have stressed in a joint statement. Following an announcement by the EU Commission to open investigations into Chinese state support for electric vehicles, the ministers Robert Habeck and Bruno Le Maire reiterated their countries鈥 determination to cooperate on key industrial, energy and climate policy. They vowed to use their combined strength to better position Europe in the international race for creating a successful and competitive low-carbon economy.

In a amid mounting challenges to Europe鈥檚 role in the global economy, ministers from France and Germany have resolutely backed efforts by the European Union to for electric vehicle production. Both sides stressed their determination to generally strengthen the two countries鈥 cooperation on industrial transformation: 鈥淓urope has to make sure its interests are being safeguarded,鈥 German economy minister Robert Habeck said at a press conference in Berlin together with his French counterpart, Bruno Le Maire. The joint statement followed an Ursula von der Leyen to start a probe into possible distortion of competition by the Chinese government through illicit subsidies for its booming electric vehicle industry.

A key EU policy aim is the transition to a low carbon economy, with France and Germany being among the greatest advocates for such a push. Both countries are hoping to reinvigorate national industries in the process. They have sought close cooperation to streamline efforts to obtain access to relevant EU support programmes, despite differences over key aspects of the energy transition, particularly regarding nuclear power. However, Paris and Berlin also share many industrial interests and have promised to intensify cooperation in light of the recent energy crisis and increasing protectionist tendencies in international trade.

Habeck said the 鈥渕any subsidies鈥 available in the EU should be better focused on supporting industrial transformation. Reducing regulation and speeding up procedures and licensing are among the steps both ministers said their countries will better coordinate in the future and integrate into wider EU efforts of the Net Zero Industry Act. 鈥淚t鈥檚 not only about expanding renewables faster, but also expanding those industries that make those renewables faster,鈥 Habeck said.

Speaking in German, Le Maire called the regular meetings between French and German ministers 鈥渁 useful tradition鈥 that underpins the 鈥渃lose and efficient cooperation of France and Germany in matters of climate action, competitiveness, energy, innovation or growth.鈥 Faced with competition from China and a fast-recovering US economy, Europe must close its ranks to defend its position on global markets, Le Maire argued. 鈥淲e cannot be satisfied with investments in innovation that are inferior to those in China or the US,鈥 he added. Ensuring access to low-carbon energy 鈥渁t attractive prices鈥 for all member states is a topic that will preoccupy the EU for some time, the French minister said. This would be one of the conditions to enable 鈥渁n equal game鈥 with other major economic powers, he added. 鈥淚鈥檓 sure that we will be able to come to a common understanding with Germany about the energy issue and a reform of Europe鈥檚 energy market.鈥

EU "must defend economic and industrial interests鈥 and 鈥渢hink big鈥 about joint projects

Historically differing positions between the two countries鈥 energy systems should not stand in the way of a joint push, Le Maire stressed. The French minister explicitly backed an EU probe into possible violations of international trade laws, arguing that France continued to be open to cooperate with China on the basis of 鈥渇air competition.鈥 While not mirroring his French colleague鈥檚 eagerness to open proceedings against China鈥檚 business practices, German minister Habeck agreed that an investigation is needed. 鈥淣ot doing anything is not possible,鈥 he said. The ministers鈥 joint statement comes after months of difficult negotiations between France and Germany regarding the EU鈥檚 strategy to achieve carbon neutrality by mid-century. The energy crisis revealed cracks in the countries鈥 energy policies that need to be overcome in order to 聽improve the bloc鈥檚 chances of staying on course to meet its climate targets while protecting its economic prowess.

鈥淓urope must defend its economic and industrial interests鈥 and 鈥渢hink big鈥 about joint projects to translate its ambitions into action, such as the battery production initiative France and Germany launched together in the past, LeMaire argued. 鈥淲e are in the process of building up a battery production line that is just as competitive and innovative as that of China.鈥 Paris and Berlin could mirror these successes in other areas too, including artificial intelligence, solar panel production, space exploration, raw materials or hydrogen. 鈥淚鈥檓 convinced of the power of the Franco-German partnership,鈥 which by combining the clout of the EU鈥檚 two biggest economies would give every member state a better chance to stay afloat and address economic competition in the 21st聽century, Le Maire added.

German finance minister Christian Lindner stressed that 鈥渁 solid economic foundation鈥 is needed to 鈥渕aintain Europe鈥檚 social standards and ecologic ambitions.鈥 Lindner too said that a review of bureaucratic standards in Europe is needed to realise the flexibility required in a rapidly changing economic environment. Additionally, reforms and better alignment of Europe鈥檚 national capital markets would be needed to channel the vast private capital available in the EU into transformation projects. France and Germany sketched a joint roadmap for better common capital market across Europe that improves access to funding for small and medium-sized enterprises in particular. Integrating sustainable finance principles would play a major role in these efforts, the German treasurer added.

German energy industry association BDEW commented that the EU Commission president鈥檚 promise for implementation of the EU鈥檚 Green Deal is a welcome move in light of the challenges posed by the energy crisis and industrial transformation. Projects such as reforming the EU鈥檚 power market, a gas supply package, or the launch of a European hydrogen industry should be initiated before the European elections in 2024, said BDEW head Kerstin Andreae. 鈥淚t鈥檚 equally important to reduce bureaucracy and achieve leaner procedures,鈥 Andreae added. 鈥淭hese are currently among the greatest hurdles to the energy transition.鈥

Chemical industries association VCI also said excessive bureaucracy continued to be one of the biggest challenges for industrial companies in Europe. 鈥淲e need a Burden Reduction Act,鈥 said VCI head Wolfgang Gro脽e Entrup, arguing that the EU Commission had 鈥渒illed off every last detail of the transformation through regulation鈥 in the past four years. 鈥淲e must quickly end a situation where our companies think about investing outside of the EU on grounds of costs and regulations.鈥

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