Von der Leyen announces ‘new phase’ climate plan with more attention to industry

After years dominated by pandemic, climate ambitions and war, Ursula von der Leyen’s message this Wednesday was clear: back to business.

In her so-called ‘State of the Union’, a kind of European speech from the throne, mainly played a leading role in promoting and protecting European companies and industry. “Europe will whatever it takes to maintain its competitive advantage,” said the President of the European Commission in Strasbourg.

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It is a signal that, after years of crisis full of grand plans, Von der Leyen has not forgotten that the EU is primarily a market where money has to be made. Von der Leyen did not give any hints about her own future – there will be European elections in June. But in the run-up to a decision on a possible second term as Commission President, she showed member states and MEPs, especially those from her own Christian Democratic party, that the economy is in good hands with her.

Her most important announcement on Wednesday can also be seen in that light: that the European Commission is launching an investigation into possible unfair competition through the import of cheap Chinese electric cars. France in particular has been calling for such an investigation for months, which could lead to new duties on Chinese cars. The fact that Von der Leyen is taking the first step now will be met with approval in Paris.

Climate plans

The Commission President also explicitly placed climate policy within an economic framework. In recent months, resistance to new climate policies has grown in various European countries and the European Parliament and there have been calls for a ‘green pause’. Von der Leyen did not go that far, but she did announce a ‘next phase’ of the so-called Green Dealin which implementation and industrial competitiveness must be central.

She did not comment on whether further improvements will be needed in the coming years. The crucial climate conference in Dubai at the end of November, where the EU must play a key role, also remained unannounced. Nor did she give any indications of a new climate target for 2040 – for which the Commission must make a proposal next spring.

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Von der Leyen did, however, extensively praise farmers who, despite difficult circumstances, “provide fresh food every day.” “I am convinced that agriculture and nature conservation can go hand in hand,” said the Commission President. The fact that she further called for “more dialogue and less polarization” and wants to talk to farmers about their future shows that agriculture has also become an important theme in Brussels – partly in response to the Dutch nitrogen discussion and the rise of the BoerBurgerMovement.

And although Von der Leyen also emphasized that the Green Deal remains ‘on course’ and ‘ambitious’, several MEPs on the right interpreted the speech as a weakening of climate policy. They also referred to the departure of Climate Commissioner Frans Timmermans, who recently left Brussels for The Hague. Former CDA minister Wopke Hoekstra is currently a candidate for European Commissioner to take over the climate portfolio, a change that left-wing MEPs also fear will herald a change of course.

In the coming months, the conversation in Brussels will mainly focus on EU enlargement and the possible decision to start accession negotiations with Ukraine and Moldova. Von der Leyen emphasized the importance of a thorough process and therefore failed to mention a target date for the membership of both countries – a stark contrast to President of the European Council Charles Michel, who recently announced that he was aiming for 2030.

It was also significant that the Commission President did not specify how many new Member States might be added. At the same time, she once again made it clear that she is in favor of ‘perfecting the Union’. This also means that the European Union must first prepare itself for a round of enlargement. For example, because the existing EU budget must be reformed, or the way in which member states vote. The Commission will present proposals for this early next year.

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