Thu. Mar 27th, 2025

Main results of the EU Competitiveness Council – Internal market and industry

Mar 13, 2025 , , ,

Brussels, 12 March 2025

European industry – the competitiveness compass and the clean industrial deal

Ministers held a debate on ways to push for a more competitive European industry. The discussion was held following the publication on 29 January of the competitiveness compass, and the clean industrial deal on 26 February. Ministers supported many of the measures proposed in these documents including decarbonisation, increasing industrial competitiveness, circular economy (to recover critical materials and reduce waste), diversification of energy supplies, more investment in grids and storage infrastructure, the creation of lead markets for green products (including public procurement), creation of high quality jobs, protection of skills, avoiding fragmentation of the single market and international agreements to secure access to raw materials, supply chains and free trade.

The European economy is at a turning point. Our industry faces a perfect storm: high energy prices, unfair competition from third countries, and a growing innovation gap with global rivals. Today, we pick up the baton from the Commission. It’s time to move from words to action – from debate to real solutions. There’s still much to do, but we are on the right path to unlock the full potential of the European economy. – Krzysztof Paszyk, Polish minister for economic development and technology

 

Towards a horizontal strategy for a modernised single market: the need for an action plan for services

Ministers held a political debate on the forthcoming strategy for the single market, with a special focus on an action plan for services. The debate followed the publication of the annual single market and competitiveness report (ASMCR) on 29 January. The discussion provided concrete input for the new horizontal single market strategy, which the Commission plans to deliver in May. Among other issues, ministers supported the idea of including in the strategy a services roadmap with smart objectives and clear timelines.  Many delegations underlined the importance of professional qualifications mutual recognition and mobility of workers. Several ministers underlined the importance of efficient permitting processes, the construction sector and the steady implementation of EU rules, especially for services directive. Several delegations also called for the full use of all available digital tools to boost the integration of services in the single market.

 

A comprehensive EU toolbox for safe and sustainable e-commerce

Over lunch, ministers held a discussion on the communication entitled ‘A comprehensive EU toolbox for safe and sustainable e-commerce’ that had been presented by the Commission on 5 February.

 

First omnibus simplification packages

Ministers discussed on the simplification measures proposed by the Commission on 26 February (the so-called Omnibus packages) and whether the ‘Omnibus method’ can deliver swift simplification on the ground, and how to ensure that simplification measures are also prioritised at European and national levels. Ministers focused on other areas of European legislation that also require simplification measures to strengthen the competitiveness of EU companies, in particular SMEs. The Omnibus simplification packages presented by the Commission on 26 February (one on sustainability measures, and a second one on financing) are the first in a series of measures promised by the Commission to reduce by 25% reporting obligations for companies (and 35% for SMEs).

 

A competitive and decarbonised EU industry in the context of the CBAM

Ministers exchanged views on industrial policy and on the carbon border adjustment mechanism (CBAM, the EU tool for placing a fair price on the CO2 of carbon-intensive goods entering the EU, and encourage cleaner production in non-EU countries). Ministers discussed ideas to strengthen the CBAM regulation such as the reduction of administrative burden, the appropriate scope, the coverage of downstream products, the fight against carbon leakage, the prevention of circumvention practices and the fight against indirect emissions.

 

Other business

A blueprint for the new horizontal single market strategy

The debate on the single market strategy was followed by an information point tabled by Czechia, Germany, Estonia, Finland, Croatia, Ireland, Lithuania, Latvia, Malta, the Netherlands, Portugal, Romania, Sweden, Slovenia, Spain and Slovakia. Those delegations proposed specific measures to improve the single market, ahead of the forthcoming single market strategy.

 

Revitalising Europe’s industrial future: strengthening competitiveness and resilience

Portugal, Spain, Slovakia and Slovenia called for an industrial pillar in the announced European competitiveness fund to foster technological leadership, secure supply chains and ensure that Europe remains a key global industrial player.

 

The automotive industry action plan

The Commission presented the ‘industrial action plan for the European automotive sector’, which had been made public on 5 March.

 

The alarming situation facing the European chemicals industry, a strategic sector that needs a dedicated EU critical chemicals act

Czechia, France, Hungary, Italy, the Netherlands, Romania, Slovakia and Spain drew attention to the crisis that the chemical industry is currently facing (with a 12% drop in production and the risk of losing 50 000 jobs in the petrochemical business alone) and proposed  measures to support the sector.

 

Preparatory documents
Outcome documents

 Source – EU Council

 

 

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