Von der Leyen’s six priorities for reindustrialisation. Words and deeds

Brussels. In her first speech following the summer recess, Ursula von der Leyen showed her determination to steer her Commission’s policy towards an industrial focus. “Mario Draghi has charted the course. Following in his footsteps, our ambition is clear: to make Europe a continent that produces, invests and protects” and “to put industrial capacity back at the heart of our actions”, von der Leyen said yesterday before an audience of industrialists in Paris. It was as if she were seeking to reassure the sceptics, who note the Commission’s delay in implementing the recommendations of the Draghi report. It was almost as if she were responding to the creation of the new think tank co-chaired by the former President of the European Central Bank and former Italian Prime Minister, whose aim is to reverse the decline in the European Union’s competitiveness. Within the Commission, the “Rhine Group” – with Patrick Collison, the CEO of Strike, as the other co-chair and the economist Luis Garicano as executive director – has caused some embarrassment. According to “Draghi Watch” – an observatory monitoring the implementation of his report – 60 recommendations have been implemented, 98 only partially, and 225 are still at an early stage. Von der Leyen acknowledged that “France has contributed significantly” to a change of course from the Commission’s past economic orthodoxy. However, whilst demonstrating great determination, von der Leyen spoke of six areas where work has already begun.

Von der Leyen’s first priority in revitalising European industry is tackling unfair competition, particularly from China. The Commission President reiterated her commitment to continuing dialogue with Beijing, but on condition that it yields ‘results’. If dialogue fails, ‘we must be prepared to make full use of our trade defence instruments’, said von der Leyen. The second priority is business financing, because “Europe lacks neither technology nor savings. What it lacks is the capacity to help its businesses grow”. According to von der Leyen, the Savings and Investment Union can “unlock up to €470 billion in additional investment”. The third priority is the completion of the Single Market in the services, energy, telecommunications, finance and digital sectors. The solution: the 28th regime for businesses, less stringent merger control rules to facilitate acquisitions, and a preference for European suppliers in public procurement.

The fourth priority area is energy. The Commission President has confirmed her intention to accelerate the transition to electrification, but has also acknowledged that businesses cannot be expected “to switch to electricity when it costs on average almost three times as much as gas”. In addition to recent proposals to secure more ETS emission allowances, von der Leyen wants to take action on taxation to ensure that electricity cannot be taxed more heavily than gas. The fifth priority area is artificial intelligence, because “Europe cannot depend on other powers for the technologies that will power its businesses, infrastructure and services”. Von der Leyen’s slogan is to “produce and disseminate” AI. However, she has not explained how she intends to catch up with the United States and China. The sixth priority is the diversification of free trade agreements to counter Trump’s tariffs and make supply chains more secure. Mercosur, India, Australia: this is perhaps the only area in which von der Leyen’s work has yielded concrete results.