All hands on deck: Charting a course towards a clean industrial strategy
One year ago, Mario Draghi warned that Europe was becalmed in treacherous waters. Fading competitiveness, trade disputes to east and west, and a growing political mutiny against the green transition make the way forward hard to navigate. This year, however, the EU has begun to find its bearings – guided by the Competitiveness Compass, with decarbonisation as the north star of the Clean Industrial Deal.
But knowing the general direction is not enough. Europe needs a map of the seas to chart safe routes and avoid hidden rocks – and for all 27 members of the crew to be pulling in the same direction. So far, this has not been the case. Green industrial policy has lacked clear priorities at EU level, while Member States have often pursued uncoordinated national measures that weaken collective action.
Before the end of the year, the European Commission will propose a new initiative to make the journey ahead a success: the Competitiveness Coordination Tool. In our latest I4CE paper, we outline how it can chart a course towards industrial competitiveness while keeping that decarbonisation north star always in sight.
Progress will stall if half the ship tacks to port and the other to starboard. The CCT can help steer a common course, setting shared industrial priorities and strengthening coordination, while drawing on lessons from past successes such as The European Semester and Energy union. With a clearer sense of direction, the EU and Member States can channel scarce public funds towards investments that support both climate and competitiveness goals.
With clear priorities, coordinated action, and effective investments, the EU has a chance to right the ship – and press forward with the wind in its sails.
