Sacrifice the Environment for Competitiveness – a New EU Requirement

The environment and sustainable solutions may become the losers when Europe tries to become more competitive. Tough demands for simplifications can lead to delayed and watered-down legislation.

» Published: January 29 2025

Sacrifice the Environment for Competitiveness – a New EU Requirement
Photo: Virginia Mayo/AP/TT

The EU must improve its competitiveness to avoid falling behind the USA and China, a mantra repeated in Brussels over the past year.

Now, it's time to turn this into something concrete, with the help of the competitiveness compass presented by the EU Commission to show the way towards a stronger economic union.

Not least, simpler rules are promised.

Too many companies are holding back investments in Europe due to unnecessary bureaucracy, lamented Commission President Ursula von der Leyen in a keynote speech at the World Economic Forum in Davos last week.

Abolish the green deal?

Clear opinions have already been expressed about what should be simplified.

Polish Prime Minister Donald Tusk is calling for a review of all EU legislation within the "green deal" to get cheaper energy.

France's EU Minister is demanding specifically that rules on increased corporate responsibility to prevent environmental crimes and poor working conditions outside the EU be put on hold.

The country's far-right is going even further, offering the conservative parties in Europe an alliance to completely bury the green deal.

Have some courage and think about France's competitiveness, our companies, and French workers, said National Rally leader Jordan Bardella in a New Year's speech.

Competitive advantage

The EU Commission, meanwhile, is sticking to the view that much of the green deal must be seen as a competitive advantage, especially in the long run.

If Europe is to be competitive, that's the way to go: to hold on to it and make sure we continue to transform, says Environment Commissioner Jessika Roswall at a Swedish press conference.

It's clear that it's possible to make it simpler, maybe around reporting. But I also hear from industry that we can't keep wavering. They want clarity, says Roswall.

"Failing"

From the Swedish government's side, Finance Minister Elisabeth Svantesson (M) emphasizes that they do not want to "lower the level of ambition" for the climate and environment.

But she also notes that reporting requirements and rules have been piled on top of each other within the EU.

Generally speaking, there are definitely too many rules. Compared to the USA, we are lagging far behind. They innovate for growth, while we try to regulate it, and it's not working, says Svantesson to TT.

EU Commission President Ursula von der Leyen presented three "cornerstones" for better competitiveness in the EU last week:

* Creating a functioning capital markets union, "which can turn savings into investments, especially for new technologies".

* Less bureaucracy and fewer national rules on the EU's internal market.

* Low and stable energy prices, primarily through renewable energy, but also nuclear power "in some countries".

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By TTTranslated and adapted by Sweden Herald

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