Industry urges EU crisis management for economy like for Covid-19

European Commission President Ursula von der Leyen (C) poses with industry leaders and workers for a group photo of the European Industry Summit in Antwerp. Jonas Roosens/Belga/dpa

Leading European industry representatives urged the European Union to adapt the same determined leadership approach to revive the ailing economy as the bloc did to handle the Covid-19 pandemic.

“We urge you take measures that show the urgency is felt in times of crisis,” a declaration issued on Wednesday at the end of a gathering of around 500 industry representatives in the Belgian port city of Antwerp said.

“With your leadership the COVID crisis was overcome and measures could be taken that were not deemed possible before,” the statement read.

“We need the same approach for industrial competitiveness. We urge you to move from diagnosis to delivery, and from plans to results, with a single objective: Save our industry. Not next year, not next week, but today.”

The plea for help comes on the eve of an EU summit focused how to respond to stifling global competition and how to take on internal challenges like high energy prices and extensive red tape to unlock growth.

Less red tape vs ‘BuyEuropean’ vs joint debt

While EU leaders agree that the European economy needs policy reforms to thrive, approaches to addressing these issues differ across EU countries.

German Chancellor Friedrich Merz has been advocating for less red tape to ease the reporting burden on businesses.

French President Emmanuel Macron supports the ideas of giving preference to European companies in certain cases as well as taking on joint debt to boost investments.

Macron criticized the fact that Europeans often invest in non-European solutions.

“So many times we invest and finance non-European solutions. We are crazy, literally,” Macron told business representatives in Antwerp.

The German government had previously rejected Macron’s call for new joint borrowing.

In Antwerp, Merz backed the idea of a European preference but spoke out in favour of a less far-reaching approach than that envisaged by Macron.

“We should use European preference rules, but in a smart way, only for critical strategic sectors and only as last resort,” Merz said in a speech following Marcon’s address.

European Commission President Ursula von der Leyen voiced support for Macron’s push for a European preference in public procurement in her address in Antwerp.

Von der Leyen also urged EU countries to invest more revenues from the EU Emmissions Trading System (ETS) in innovation to reduce CO2 from industry.

Von derLeyen pushes unified European capital market

Addressing EU lawmakers in Strasbourg, France, earlier on Wednesday von der Leyen pushed to simplify the European Union’s capital market to reduce fragmentation and boost competitiveness, even if not all 27 members of the bloc are on board.

“Here in Europe, we don’t only have 27 different financial systems, each with its own supervisor. But also more than 300 trading venues across our Union,” von der Leyen said.

“That is fragmentation on steroids. We need one large, deep and liquid capital market,” she said.

On the contrary, the United States has “one financial system, one capital market and a handful of other financial centres.”

The European Commission has proposed streamlining national rules to create a so-called savings and investment union. Harmonizing financial rules in Europe has, however, proven difficult in the past.

Von der Leyen urged lawmakers to make swift progress, but stressed that she was willing to go ahead with the legislation if not all EU countries were ready to cut back their national rules.

“Our companies need capital right now. So let’s get it done this year,” she said.

“We have to make progress, one way or the other, to tear down the barriers that prevent us from being a true global giant.”

(L-R) BASF CEO Markus Kamieth, Belgian Prime Minister Bart De Wever and EU Commission President Ursula von der Leyen attend the European Industry Summit in Antwerp. Jonas Roosens/Belga/dpa