EU Commissioner Thierry Breton is calling for increased efforts to attract investments in green technologies in Europe.
(Photo: imago images / IP3press)
Mr. Breton, is the US government’s billion-euro investment program for a climate-neutral economy (IRA) an attack on Europe as a business location?
Yes, it is truly unfortunate that our so-called like-minded partners resort to such means. The IRA contains massive investment incentives for green economic sectors, the USA is actually opening a subsidy race and possibly discriminating against European providers. The result could be that companies move significant parts of their supply chains to America.
What sectors are you worried about?
It’s about battery production, the car industry, but also wind and solar power. American subsidies distort competition.
A task force between the Commission and the US government is to defuse the conflict. Does the EU still reserve the right to take legal action before the World Trade Organization?
My colleague in the Commission, Valdis Dombrovskis, is looking at this very closely. I strongly support tackling the problem within the framework of the WTO.
Does the European Union have the tools it needs to survive in a world where governments are becoming increasingly involved in the economy?
We must increase our efforts to attract investment in green technologies in Europe. We have already initiated many things. The European Investment Bank is supporting electrification with 1.6 billion euros over the next two years. The Corona reconstruction fund contains 19 billion euros for the change in the automotive and mobility sector.
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We also have two support programs, so-called IPCEIs, for batteries, which bring together six billion euros in state aid and 14 billion euros in private investment. That shows: We have our tools.
>> Read here: The US and the EU are approaching each other in the battery dispute
French President Emmanuel Macron is already proposing a Buy European Act in response to the American initiative. Is this the right way?
We need a Made-in-Europe strategy for the automotive sector, just as Commission President Ursula von der Leyen has called for. Let’s take battery manufacturing. Our regulatory proposal provides for high climate, environmental and social standards.
As the guardian of the internal market, I will be very strict. It would be extremely unfair to allow companies from outside the EU to sell cheap batteries that don’t comply with our rules. We welcome everyone to Europe – but on our terms. Ultimately, we are taking on this massive transformation to meet our global climate commitments.
However, some economists fear the deindustrialization of Europe. The automotive industry is particularly at risk. Do you share this assessment?
We are facing a massive industrial transformation, perhaps the largest in history. I will therefore set up a round table that brings everyone together: the big car manufacturers, small and medium-sized businesses, consumer organisations, battery producers and electricity suppliers. In it we will define specific success brands. For example, for coverage with charging stations for e-cars, increasing the electricity supply and the supply of raw materials.
There will be a meeting every three months. In 2026, an interim assessment will then be made as to whether we are still on the right track to achieving the goal of only allowing emission-free cars in Europe from 2035 onwards.
>> Read here: “Traitors, Bastards” – How the US alienated close allies
The green transformation calls for minerals, which Europe has to import and which are scarce worldwide. Will the EU get into similar dependencies as with fossil fuels?
We absolutely have to prevent that. In the future we will need 15 times more lithium, four times more cobalt and graphite, and three times more nickel. I therefore proposed the Raw Materials Act, which aims to strengthen domestic production, processing and recycling.
Mr Breton, thank you very much for the interview.
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