The Socialists and Democrats in the European Parliament welcome the Clean Industrial Deal – the EU Commission’s plan for the reindustrialisation of Europe – adopted by the College of Commissioners today. Revitalising European industry will only be possible if energy bills are brought down, as this will have a significant impact on households and the creation of new jobs throughout the EU. The Socialists and Democrats call for the creation of leading markets for climate-friendly materials and clean technologies through targeted procurements. Furthermore, circularity could improve the competitiveness of European industry worldwide through investments in recycling, the substitution of virgin raw materials and clear product requirements. The S&D Group reminds the European Commission that the decarbonisation of our economy and industry has to remain the principle driver of European competitiveness. In this regard, the Socialists and Democrats call on the Commission to maintain a high level of ambition when it comes to the emission-reduction goals.

Mohammed Chahim, vice-president of the S&D Group for the Green Deal for Industry, Energy and Climate, said:

“In order for the EU to revitalise its industry and jobs, we urgently need short-term measures to protect both citizens and industries from high electricity prices, to ensure stable energy markets and prevent speculation-driven price volatility. The S&D Group has long been advocating for this, even before Russia’s illegal invasion of Ukraine and its impact on energy prices. We have to remove all the obstacles hindering the progress towards clean energy. We call for greater transparency and monitoring of electricity traders and energy commodity markets. In addition, decoupling fossil fuel prices from electricity prices is essential for reforming energy markets, reducing price shocks, and providing consumers with better protection. A cap on electricity prices would also offer greater security against price surges.

“EU industry can only be sustainable if we are energy resilient. We have to improve market integration and boost the production and use of renewable energy through investments in energy infrastructure, interconnections and grid reinforcement. We call for the extension of market correction mechanisms to better prepare for future energy crises.

“Our Group welcomes the efforts of the European Commission to deal with persisting problems for industries aiming at decarbonisation. Among these problems are the slow process of issuing permits for production in many member states and difficulties with access to EU money. The efforts of the Commission in this regard include EU funding for technical assistance for industry, and incentives for less bureaucracy at national level in the permitting process. We also welcome initiatives that reduce taxes for energy intensive industries that decarbonise their production. Every person, community and business should benefit from the clean and just transition – and this needs to deliver quality jobs, empower people and provide financial assistance to citizens to access core clean products. In this sense, it is critical to facilitate the subsidised leasing of electric cars, heat pumps and other clean technologies.

“An effective use of state aid policy and boosting private investments will also be key for EU reindustrialisation. The EU state aid rules have to support a real European industrial strategy by providing a predictable legal environment. It has to aim at the acceleration of green investments and the reduction of inequalities within the EU while enhancing European competitiveness. As many EU member states have limited public resources, our Group calls for the assessment of the Temporary Crisis and Transitional Framework under EU state aid rules. We need measures to bring high energy prices down, reduce energy consumption and aid the green transition – without fragmenting the Internal Market.

“We would like to see more commitment from the European Commission on monitoring the implementation of existing legislation – for example, the Energy Efficiency Directive; the Renewable Energy Directive; the Revision of the Energy Performance of Buildings Directive. This legislation can be a key driver for investments in the context of the Clean Industrial Deal.”