EU should create regulatory breathing space to strengthen competitiveness and respond effectively to IRA

31 January 2023 - On Wednesday, the European Commission will present its proposals on how the EU can strengthen its competitiveness. To this end BusinessEurope President Fredrik Persson stated: “the EU should create regulatory breathing space to strengthen competitiveness and respond effectively to the IRA”.

"The European Commission has finally recognised the urgency to act on Europe’s worsening competitiveness. BusinessEurope urges the EU to create regulatory breathing space for companies to sustain the crises instead of continuing to burden businesses with further regulations. European companies are still up to their necks in the face of high energy prices, inflationary pressures, supply chain disruptions and ongoing geopolitical tensions. The U.S. Inflation Reduction Act (IRA) puts another real challenge on European industries.

To give businesses more certainty, the European business community expects a comprehensive answer to the IRA. A subsidy race must be prevented. The answer needs to simultaneously address the push factors resulting from higher energy and regulatory costs as well as lengthy permitting procedures, and counter the financial pull factor created by the IRA. If the EU fails to deliver on all those aspects, we will lose even more ground on global competitiveness.

With her announced Green Deal Industrial Plan, the EU Commission President is showing leadership. Words and good ideas must now be swiftly followed by concrete deeds. The EU should do everything in its power to improve investment conditions in Europe to transform all industrial sectors. Faster and simpler planning and approval permits must be top priority for a successful transformation of the European economy.”