By Andrea Mazzoni

6/06/2025

 

“The European economy is at a turning point”. It was with these words that Poland's Minister for Economic Development and Technology, Krzysztof Paszyk, described the crucial moment that Europe's industrial economy is currently experiencing, during the Competitiveness Council for Internal Market and Industry meeting held on 12 March, 2025 (Council of the European Union, 2025).

The problems are clear, as the minister describes, “High energy prices, unfair competition from third countries, and a growing innovation gap with global rivals.”

 

The discussion in the Council revolved around the presentation by President Ursula Von Der Leyen of the new Clean Industrial Deal (CID). The plan is designed to support and promote decarbonisation of European industries in order to make Europe independent and globally competitive.
With the launch of the plan on 26 February 2025, the European Commission aims to make decarbonisation not only an environmental necessity, but also a strategic lever to revive industrial growth in Europe, relaunching the goals of the 2019 Green Deal, to cut fossil-fuel emissions by 90% by 2040.

 

These measures mainly aim to meet the needs of the current geopolitical situation, as Europe's economic success depended largely on access to cheap resources from Russia. A succession of Russian invasions, Ukraine, and imposed sanctions have affected the EU's energy balance, which cannot keep up with its main global competitors, the US and China.
This leads to a greater need for strategic European autonomy in energy production and energy cleaning.

 

But what are the main proposals of the Clean Industrial Deal?
The measures taken by the European Commission are aimed at supporting energy-intensive industrial sectors such as steel, heavy metals and chemical industries. These would be the sectors most sensitive to high costs, complex regulations and unfair global competition. Indeed, industries operating in the above-mentioned sectors face a double burden: on the one hand investing in technological improvements for decarbonisation, and on the other hand energy prices, which create structural disadvantages for European industry.

 

The two key elements for the achievement of the goals, according to the directives of the European Commission Presidency, are circularity and clean technology, which are essential for reducing waste and industrial transformation.
To support the development transition, the CID aims to mobilise more than 100 billion to implement the Innovation Fund with the proposal of an Industrial Decarbonisation Bank. Also from a regulatory point of view, it proposes a series of measures to make the regulatory environment more efficient, reducing bureaucratic charges for companies operating in the sector.

 

Nonetheless, as raised by the European Economic and Social Committee (EESC) during a debate organised just ahead of the EU Council, “Can the deal truly support Europe's clean-tech sector, energy-intensive industries and the strategic autonomy?” 

 
In this context, it was discussed that, firstly, we have to take into consideration that the goals imposed by the pact will require the complex cooperation between the triad: member states, European institutions and industry.
Although the European Investment Bank has promised financial measures to improve European energy networks, national governments will also have to mobilise additional financial resources.

 

Secondly, we must also consider the social impact this transition has on society. Mainly representatives of civil society have questioned the consequences that the reduction of energy taxes may have on the budget allocations for education and health.

 

On the optimism of the pact proposed by the Commission, legitimate doubts subsequently emerged on the realistic ability to meet the challenges highlighted. Of fundamental importance for industrial growth are speed of implementation and simplification of procedures.
But what remains a real problem that is difficult to solve is the fragmentation of national policies: a problem that, if left unresolved, risks making us miss a crucial opportunity for the alignment of European industrial policy.

 

Indeed, Europe's strategic autonomy must not only be seen as military or border policy, but must also include energy independence and technological leadership, two essential factors in defining Europe's industrial future.
Furthermore, reindustrialisation must be socially fair. The transition must take into account workers and local authorities and create new job opportunities in the field.

 

As this week European leaders, experts and stakeholders were meeting in Brussels for the EU Green Week 2025, the hope is that actual action will be taken to boost the Clean Industrial Deal, to promote its core principles and, who knows, perhaps even outline concrete directions that could lead to a turning point for European industry.

 

 

References:

 

  • Council of the European Union. (2025, March 12). Competitiveness Council meeting. https://www.consilium.europa.eu/en/meetings/compet/2025/03/12/
  • European Commission. (2025). Clean industrial deal. https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_it
  • European Commission. (2025, March 20). Deal verde per l’industria pulita: la Commissione propone un nuovo quadro strategico. https://ec.europa.eu/commission/presscorner/detail/it/ac_25_640
  • European Economic and Social Committee. (2025, March). EESC Info – March 2025. https://www.eesc.europa.eu/en/news-media/eesc-info/eesc-info-march-2025/articles/128320
  • (2025, March). Europe’s clean industrial deal needs more than just ambition [Opinion]. https://www.euractiv.com/section/eet/opinion/europes-clean-industrial-deal-needs-more-than-just-ambition/
  • Rankin, J. (2025, February 26). EU sets out climate goals for industry in ‘clean industrial deal’. The Guardian. https://www.theguardian.com/world/2025/feb/26/eu-climate-goals-dirty-industries-clean-industrial-deal
  • The Parliament Magazine. (2025, March). Op-ed: Green agenda must be the heart of a clean industrial deal. https://www.theparliamentmagazine.eu/news/article/oped-green-agenda-must-be-the-heart-of-a-clean-industrial-deal
  • The Parliament Magazine. (2025, March). What to know about the EU’s bid to revitalise its green industry. https://www.theparliamentmagazine.eu/news/article/what-to-know-about-the-eus-bid-to-revitalise-its-green-industry