Brussels – Doing things right, together, for European competition with the rest of the world and not between member states. The economic ministers of the European Union, the one with and without a single currency, agree to resist the temptation to act in random order, every country for itself. Instead, they see the coordination of industrial policies as the key to becoming truly competitive and innovative again. It’s the joint statement at the end of the Eurogroup meeting in the enlarged format with those not yet in the eurozone.
“Differentiated use of industrial policies, particularly at the national level, should be avoided as it risks undermining the single market,” stress the economic and finance ministers of the 20+7. The key lies precisely in the shared need to complete and strengthen the single market, and having differentiated industrial policies would go against this principle. Of course, governments avoid completely tying each other’s hands by recognizing, “in specific cases,” the possibility of proceeding in a national manner to “address market failures and enhance open strategic autonomy.” However, these are exceptions to be “carefully defined” as well as “properly implemented to avoid risks such as rent-seeking, misallocation of resources and trade distortions.”
The watchword is and remains “coordination”. There are no alternatives when looking at the global scenario. “Over the years, the productivity gap has widened between the EU and its trading partners, as in the case of the United States, while emerging economies like China continue to increase competitive pressure.” The ministers know that the EU is in the Sino-US grip, and in the face of this they consider it a “priority to address Europe’s under-performance in productivity by facilitating the conditions for European companies to invest and innovate.” Without triggering an all-intra-European struggle.
English version by the Translation Service of Withub
