What companies want to feel more secure: a strategic EU fund for energy and raw material
Being Europe, in spite of everything. In spite of the eruption, on the European scene too, of short-sighted, national self-interests and populist-cum-sovreignist tensions, which could shatter a democratic and political equilibrium painstakingly achieved throughout the years. In spite of disagreements – those related to energy issues between France and Germany or those pertaining immigration between France and Italy. In spite of the too long delays in the EU’s attempts to find sound and effective arrangements concerning security, raw materials markets and sustainable development – while the war in Ukraine exacerbates political and social unrest, the recession looms closer and geopolitical rifts widen all over the world. Being Europe – a stronger, better Europe, so as not to upset the peaceful, democratic and wealthy balance that’s lasted for so long.
Being Europe, then, today means prioritising a well-planned EU strategy to ensure the competitiveness of its economic system and its enterprises, and promptly atone for its “three historical errors”: delegating its defence to the United States, contracting most of the energy supply to Russia, and developing an excessive technological dependence from China and – again – the United States (this brief outline is by Carlo Bonomi, president of territorial entrepreneurial institution Confindustria).
Some steps forward have been made, however. One is the BusinessEurope‘s document (the outcome of a meeting held at the end of November in Stockholm, which involved 40 leaders from European entrepreneurial associations ) reiterating the necessity to “act united” in tackling the current crisis and stand up to “divisive forces and egos that are undermining one of the founding values of the European Union – a supportive attitude.”
Another is the strategic agreement reached by Confindustria, MEDEF (the Movement of the Enterprises of France) and BDI (The Federation of German Industries), which met in Rome at the beginning of December for their fourth annual summit and asked the European Commission for a common European policy concerning energy and strategic raw materials; a financial umbrella for acquisition and supply of gas and oil, lithium, nickel and “rare earth” materials; and a number of EU instruments to protect member states from price and volume fluctuations and international speculation, as on global markets energy supplies are used as weapons to disrupt and rearrange the balance of power and security, which could be bad for Europe – due to the lack of raw materials.
Everyone is aware that if Europe loses economic competitiveness, its employment market and welfare model will be at risk, and a much more general crisis – a democratic one – might ensue.
This is why we need to act quickly with regard to the economy and EU regulations, which need to become more effective and lay the foundation for a budgetary policy able to stimulate public and private investments generating economic growth and sustainable development – still prioritising the latter, of course, but without “ideological approaches” holding back economy, businesses and social stability.
Europe is actually an industrial giant boasting record achievements as to the so-called environmental and digital twin transition, its territory is rife with extraordinarily ground-breaking enterprises, its market is strong and rich, its economic area – held together by trade, relationships and agreements – is a global player in terms of innovation and competitiveness. Yet, precisely because it’s lacking raw material, Europe is also fragile, and the absence of a common EU foreign policy focused on security and defence means that its political responses, intended to safeguard its values and interests, are rather troubled and scarcely effective.
The United States are also a cause for concern, with the Biden administration’s introduction of the Inflation Reduction Act, which is driving companies to buy American and as such is seriously undermining European businesses. Is there a risk of a new “trade war” between US and EU? Ursula von der Leyen, president of the EU Commission, reassures us that this won’t happen, as a conflict would adversely affect both parties and only benefit other economic giants – however, she’s equally categorical when defending European interests.
This is why, especially in periods of crises and tensions, it’s important that enterprises and their organisations continue to demand a strategic response placing the EU Commission first and aimed at consolidating a unity of purpose between Germany, France and Italy above all, in order to avoid unilateral temptations and, instead, foster unity and common decisions.
Indeed, there’s a recent precedent we could emulate, the unanimous decision to tackle the COVID-19 pandemic by sharing scientific research and industrial and logistical skills in order to produce vaccines and enforce effective health interventions, immediately followed by the implementation of the “EU Next Generation Recovery Plan”, financed by the international financial markets under EU guarantee, meant to withstand the economic and social crises unleashed by the pandemic and thus create, for the younger generation, a positive vision of sustainable development.
A similar approach pertaining energy and raw materials would be very useful now; a new European fund – again financed by the markets – for shared supplies, setting prices and conditions that would ensure the competitiveness of European businesses and easing the issues related to international competitors such as the United States and China (which are currently unaffected by high energy costs).
Of course, the EU budget and the new Stability and Growth pact should be amended accordingly, to obtain a forward-looking development policy for a sustainable and balanced Europe, able to safeguard and boost European values and interests – creating a strong bond between political democracy, an open and well-regulated market culture, entrepreneurial freedom and responsibility and widespread social security, a blend of competitiveness and social inclusion, productivity and solidarity.
Other issues are also on the agenda of the European entrepreneurial associations, such as less strict formal market regulations, in order to stimulate the growth and competitiveness of businesses; a more efficient single market; a series of EU decisions on international trade, to enhance the attractiveness of global investments in European countries; and a common industrial and fiscal policy to facilitate public and private investments in scientific research and technology transfers.
“We are experiencing an asymmetrical crisis, which is not affecting Asia and the United States. The threat of deindustrialisation is a very real one. And us European entrepreneurs are well aware that we face the risk to lose entire production chains – not just their know-how but also their social weight,” asserts Stefano Pan, Confindustria Delegate for European Affairs.
The EU is lending an attentive ear to these words, especially when uttered by two Commissioners as sensitive to development themes as Paolo Gentiloni and Thierry Breton are, as well as Ursula von der Leyen herself, who’s well aware of the close connection between a social and political balance and economic competitiveness. Essentially, Europe can win only if it remains united, and forward-looking – keeping its eyes on the “Next Generation”.
(Photo Getty Images)
Being Europe, in spite of everything. In spite of the eruption, on the European scene too, of short-sighted, national self-interests and populist-cum-sovreignist tensions, which could shatter a democratic and political equilibrium painstakingly achieved throughout the years. In spite of disagreements – those related to energy issues between France and Germany or those pertaining immigration between France and Italy. In spite of the too long delays in the EU’s attempts to find sound and effective arrangements concerning security, raw materials markets and sustainable development – while the war in Ukraine exacerbates political and social unrest, the recession looms closer and geopolitical rifts widen all over the world. Being Europe – a stronger, better Europe, so as not to upset the peaceful, democratic and wealthy balance that’s lasted for so long.
Being Europe, then, today means prioritising a well-planned EU strategy to ensure the competitiveness of its economic system and its enterprises, and promptly atone for its “three historical errors”: delegating its defence to the United States, contracting most of the energy supply to Russia, and developing an excessive technological dependence from China and – again – the United States (this brief outline is by Carlo Bonomi, president of territorial entrepreneurial institution Confindustria).
Some steps forward have been made, however. One is the BusinessEurope‘s document (the outcome of a meeting held at the end of November in Stockholm, which involved 40 leaders from European entrepreneurial associations ) reiterating the necessity to “act united” in tackling the current crisis and stand up to “divisive forces and egos that are undermining one of the founding values of the European Union – a supportive attitude.”
Another is the strategic agreement reached by Confindustria, MEDEF (the Movement of the Enterprises of France) and BDI (The Federation of German Industries), which met in Rome at the beginning of December for their fourth annual summit and asked the European Commission for a common European policy concerning energy and strategic raw materials; a financial umbrella for acquisition and supply of gas and oil, lithium, nickel and “rare earth” materials; and a number of EU instruments to protect member states from price and volume fluctuations and international speculation, as on global markets energy supplies are used as weapons to disrupt and rearrange the balance of power and security, which could be bad for Europe – due to the lack of raw materials.
Everyone is aware that if Europe loses economic competitiveness, its employment market and welfare model will be at risk, and a much more general crisis – a democratic one – might ensue.
This is why we need to act quickly with regard to the economy and EU regulations, which need to become more effective and lay the foundation for a budgetary policy able to stimulate public and private investments generating economic growth and sustainable development – still prioritising the latter, of course, but without “ideological approaches” holding back economy, businesses and social stability.
Europe is actually an industrial giant boasting record achievements as to the so-called environmental and digital twin transition, its territory is rife with extraordinarily ground-breaking enterprises, its market is strong and rich, its economic area – held together by trade, relationships and agreements – is a global player in terms of innovation and competitiveness. Yet, precisely because it’s lacking raw material, Europe is also fragile, and the absence of a common EU foreign policy focused on security and defence means that its political responses, intended to safeguard its values and interests, are rather troubled and scarcely effective.
The United States are also a cause for concern, with the Biden administration’s introduction of the Inflation Reduction Act, which is driving companies to buy American and as such is seriously undermining European businesses. Is there a risk of a new “trade war” between US and EU? Ursula von der Leyen, president of the EU Commission, reassures us that this won’t happen, as a conflict would adversely affect both parties and only benefit other economic giants – however, she’s equally categorical when defending European interests.
This is why, especially in periods of crises and tensions, it’s important that enterprises and their organisations continue to demand a strategic response placing the EU Commission first and aimed at consolidating a unity of purpose between Germany, France and Italy above all, in order to avoid unilateral temptations and, instead, foster unity and common decisions.
Indeed, there’s a recent precedent we could emulate, the unanimous decision to tackle the COVID-19 pandemic by sharing scientific research and industrial and logistical skills in order to produce vaccines and enforce effective health interventions, immediately followed by the implementation of the “EU Next Generation Recovery Plan”, financed by the international financial markets under EU guarantee, meant to withstand the economic and social crises unleashed by the pandemic and thus create, for the younger generation, a positive vision of sustainable development.
A similar approach pertaining energy and raw materials would be very useful now; a new European fund – again financed by the markets – for shared supplies, setting prices and conditions that would ensure the competitiveness of European businesses and easing the issues related to international competitors such as the United States and China (which are currently unaffected by high energy costs).
Of course, the EU budget and the new Stability and Growth pact should be amended accordingly, to obtain a forward-looking development policy for a sustainable and balanced Europe, able to safeguard and boost European values and interests – creating a strong bond between political democracy, an open and well-regulated market culture, entrepreneurial freedom and responsibility and widespread social security, a blend of competitiveness and social inclusion, productivity and solidarity.
Other issues are also on the agenda of the European entrepreneurial associations, such as less strict formal market regulations, in order to stimulate the growth and competitiveness of businesses; a more efficient single market; a series of EU decisions on international trade, to enhance the attractiveness of global investments in European countries; and a common industrial and fiscal policy to facilitate public and private investments in scientific research and technology transfers.
“We are experiencing an asymmetrical crisis, which is not affecting Asia and the United States. The threat of deindustrialisation is a very real one. And us European entrepreneurs are well aware that we face the risk to lose entire production chains – not just their know-how but also their social weight,” asserts Stefano Pan, Confindustria Delegate for European Affairs.
The EU is lending an attentive ear to these words, especially when uttered by two Commissioners as sensitive to development themes as Paolo Gentiloni and Thierry Breton are, as well as Ursula von der Leyen herself, who’s well aware of the close connection between a social and political balance and economic competitiveness. Essentially, Europe can win only if it remains united, and forward-looking – keeping its eyes on the “Next Generation”.
(Photo Getty Images)