#SOTEU: Industry must benefit from EU’s bold multi-sectoral initiatives

European Commission President Ursula von der Leyen has delivered her first keynote State of the European Union address setting out her political priorities for the next 12 months and underlining the objectives in her political guidelines.  

President Von der Leyen set out the delicate situation the EU faces due to the Covid19 pandemic, which has exposed deep structural fragilities touching all spheres from society to the environment to economy.  

In her address, Von der Leyen said the EU must respond with vitality to this multifaceted challenge and make change happen by design – not by disaster or by diktat from others in the world. “The EU must take its destiny into its own hands and set its future course. Now is the time to do so.” 

To deliver this vision, Von der Leyen has set out ambitious proposals for the next 12 months.

• On recovery, Von der Leyen said it was still at an early stage and helping Europe pull through would remain the European Commission’s number one priority. 
  
• Drawing the lessons from the global pandemic and fragmented national responses, Von der Leyen wants to build a stronger European Health Union, expanding EU competences on health. Measures include allocating more funding to health programmes, empowering the European Centre for Disease Prevention and Control (ECDC) and the European Medicines Agency (EMA), creating a European research and innovation agency mirroring the US BARDA, enabling cross-border sharing of health-data, and convening a Global Health Summit next year.
  
• On climate change and sustainability, the Commission is proposing to increase the 2030 target for emission reduction to at least 55%. This flagship initiative was widely anticipated. As a by-product of this proposal the Commission will also revise all EU climate and energy legislation to make it “fit for 55”. This includes enhancing emission trading, boosting renewable energy, improving energy efficiency and reforming energy taxation. Additional initiatives include the creation of new European Hydrogen Valleys to modernise industries and a European Bauhaus to help make the renovation wave a reality. She also reaffirmed the EU’s intent to deliver a Carbon Border Adjustment Mechanism in a WTO-compatible way.

• A rallying cry was issued to make this “Europe’s Digital Decade” in the EU’s quest for digital sovereignty. A key part of this was creating a European cloud and the possible introduction of a digital tax. The sum of 8 billion euros will be invested in supercomputing “made in Europe” and 20% of the recovery funds under Next Generation EU will be allocated to digital priorities to help deliver this vision.
  
• She also continued to position the EU as a champion of multilateralism, openness and high ambition in uncertain times and a volatile world. 

The vision, the plan and the investment needed for the EU to deliver change by design already exists, according to Von der Leyen. Now is the time to actually deliver. Next Generation EU – the EU’s recovery strategy with 1.8 trillion euros firepower – is Europe’s opportunity to make this a reality.

President Von Der Leyen also published her letter of intent for 2021 outlining key initiatives the Commission will pursue over the next year. 

FIPRA is expertly positioned to advise clients across sectors on the many implications of the State of the European Union 2020 address. Do not hesitate to contact our team who can assist in understanding what these policy announcements mean for your business.

Written by Alexander Braley (Sustainability) with input from Simon Gammeltoft (Competition), Jesus Olivares Guerrero (Healthcare), and Giacomo Pizza (Tech & Travel).