TQ 03_2024

Have you heard the saying that if you ask three solicitors, you will get four different opinions? Translated to our sphere of interest this means that the more confusing the situation and the more complex the decision-making process, the more incoherent the view of possible solutions. This becomes even more pronounced where a strategic decision may potentially lead to conflicting objectives that need to be bridged.

Our survey on the priorities for EU policy over the next five years arrived at the following finding:

There was a clear consensus across industry for matters such as the Green Deal or cutting red tape. However, in other key issues (energy, foreign policy, strategic autonomy, etc.), there are clear conflicts of objectives and a synchronised view of those matters is still lacking.

Green Deal: Yes, but ...

• The results from the survey show that the majority of respondents prioritise the competitive­ness of companies and that economic con­siderations are their top priority. They do not question the validity of the Green Deal as such but think that it needs considerable tweaking.
• The clear emphasis on competitive­ness shows that policy­makers should implement measures to support economic stability and growth more actively.
• This means that a frame­work needs to be created that enables businesses to remain competi­tive despite the environ­mental require­ments.

Energy supply: Squaring the circle

• Expanding renewable energy capacities and improving availability is vital for almost all businesses.
• However, the energy supply must be sufficient, stable and secure 24/7 – and energy prices need to be considerably lower than they currently are.
• A significant and rapid expansion of grid and storage capacities is there­fore the only solution to this current conflict of objectives.

State funding: No thanks!

• A clear response from the industry: They would rather see less state funding since it only leads to more bureaucracy.
• Private investments could flow more easily if there was significantly less bureaucracy involved.
• Access to finance is obviously not the problem, unlike the bureaucratic obstacles encountered on a daily basis by businesses.

Subsidies and fair play: A haphazard approach?

• Business representatives are in favour of massive subsidies to stay competitive, but at the same time insist on fair competition – a contra­diction that shows that clear priorities are still lacking.
• The company representatives’ ambivalence, who are unsure whether policy ­makers should go on the offensive (invest­ments) or the defensive (protective measures), is clearly reflected at the political level.
• Without a clear direction in terms of its location policy, the EU risks becoming even more dependent on countries outside the union and being left behind the rest of the world completely in terms of competitive­ness.

WTO rules, but sovereignty, not dependency

• Businesses want to continue to reap the benefits of a WTO-regulated free trade, but support in this regard is no longer considered sufficient.
• The aggressive trade policies of the United States and China force businesses to strengthen Europe's economic independence – a clear response to global insecurities and the need for a more robust EU strategy.
• Without its own innovative strength and independent production capacities, Europe will remain a pawn in the hands of global powers such as the United States and China.
• Europe needs to decide whether it will take charge and become more independent or it risks dropping down into the second tier of the world economy for years to come.

Ongoing conflicts of objectives require new forms of dialogue and collaboration

Businesses are calling on the EU to set clear priorities in terms of competitiveness and reducing bureaucracy from the EU, but environmental and geopolitical concerns are frequently at odds. The EU is at a crossroads. It needs to react decisively to these pressure points and initiate a strategic change or will be at risk of losing its economic and geopolitical relevance. The clashing expectations within the business community inevitably lead to conflicting objectives that can only be resolved through decisive political measures.

Where the direction of travel is already clear, energy should be channelled into driving it forward with determination. However, in areas where the path has not been mapped out, the focus is on creating processes that enable the different parties to reach a common understanding through dialogue.

Currently, a clear political agenda that sets priorities to overcome the economic challenges is still lacking. It is high time to develop this agenda.