14. 11. 2024
AUTHOR: Linda Kalcher and Neil Makaroff
At times of geopolitical uncertainties, we need the European Commission to start working on 1 December. The tasks at hand are too urgent to be delayed: industry is under pressure and needs support, the competition by China is strong and will likely grow even more once the Trump administration takes office.
A few weeks remain until the second Trump administration will take office. This is precious time for the European Union to prepare its response. Any delays in approving the new European Commission will undermine the ability of Europeans to react to geopolitical tensions and design a powerful Clean Industrial Deal that quickly strengthens economic security.
The European Union already faces a series of challenges, most of them could be aggravated by the incoming Trump administration:
- Key strategic sectors such as the automotive, steel, heat pump, wind and batteries industries are struggling due to low demand, inflation and cheaper products entering the European market.
- Energy prices are two to three times higher in Europe than in the US and China. The increased dependence on US Liquified Natural Gas (LNG) might worsen this situation as the Trump administration could use LNG as a bargaining tool.
- Tough industrial competition with China: If the Trump administration will put a 60% tariff on Chinese imports, there is a high likelihood of even more products being exported to the EU instead.
- A significant investment gap that becomes even more urgent and relevant as both China and the US are protecting their markets and investing heavily.
This is not the time to delay the approval of the Commissioner-designates and prevent the new European Commission from taking office in two weeks. As the biggest political group, the European People’s Party has a special responsibility and duty to prioritise an operational European Commission that can address the concerns of the industry and citizens, the very core of its voter-base. Scrutinising the Commissioner designates is crucial, but the European Parliament risks undermining its credibility if this is not done on the basis of competence and shared values. Political preferences can be clearly voiced without undermining the spirit of constructive negotiations.
Given the geopolitical tensions and the pressure on EU industry, the political attention should focus on a solid Clean Industrial Deal that reindustrialises the economy and improves the EU competitiveness. A functioning pro-European majority can work together on these priorities.
Banner image copyright: Dati Bendo/ EU/Dati Bendo
