Global and European challenges fundamentally changing present political economy’s patterns in modern states’ governance. This article attracts attention to some most vital aspects in political economy’s transformations already initiated by the European Union institutions, such as “green deal”, competitiveness, digitalisation and energy.
= European Green Deal: a) industrial “clean transition” aimed at developing new growth strategies in each industrial system, including agriculture, energy and transport; b) the EU-wide wind-power legal package to help alleviate challenges of the European U’s wind industry, including fast-track permitting system and improved the auction facilities; c) launching an anti-subsidy investigation into electric vehicles coming from China; d) launching a EU-wide strategic dialogue on the future of agriculture.
The EU’s green transition is composed of numerous legal acts: e.g. the Net-Zero Industry Act, NXIA is an integral part of the Green Deal Industrial Plan to ensure that the green transition is not put at risk by the member states’ strategic dependencies in resources. Then, by setting an aggregate manufacturing capacity objective for 2030 and simplifying the regulatory framework for net-zero technologies, the NZIA is expected to make the EU an industrial leader in this specific “green market”.
In March 2023, the European Commission adopted three key initiatives supporting the Green Deal Industrial Plan: a) the European Critical Raw Materials Act, ECRMA; b) the Net-Zero Industry Act, NZIA; and c) the reform of the electricity market structure and design.
References to: = ECRMA https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/european-critical-raw-materials-act_en.
To NZIA’s clean technologies and “green jobs” in: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/net-zero-industry-act_en.
= On green deal industrial plan: https://commission.europa.eu/document/41514677-9598-4d89-a572-abe21cb037f4_en. The Green Deal Industrial Plan enhances the competitiveness of Europe’s net-zero industry and is accelerating the transition to climate neutrality. It does so by creating a more supportive efforts for scaling up the EU’s manufacturing capacity for the net-zero technologies and products required to meet Europe’s ambitious climate targets.
= “Social economy” and competitiveness: a) organising new social partners’ summit, to focus on modern challenges: including skills, labour shortages and changes stemming from artificial intelligence; b) appointing the EU-wide “envoy” for small and medium enterprises (reporting directly to Commission President); c) preparing legislative proposals to reduce the burden of corporate reporting requirements at the European level by 25 %, to make it easier to do business; d) drafting a report on the future of European competitiveness (by the former ECB president Mario Draghi) to stimulate the EU-wide competitive system while implementing “clean transition” in growth patterns.
Additionally: initiating EU-wide bio-technology and bio-manufacturing legislation; advancing strategic materials’ initiative for the European industrial leadership in the world; supporting European defense industrial strategy; and formulating medernised rules for the European Works Council.
= Digitalisation and artificial intelligence, AI: a) opening-up European system of high-performance computers to the start-ups in the states to train the developmental models; b) supporting creation of a global panel gathering scientists, technology companies and experts to identify opportunities and risks related to AI; c) facilitating adopting of minimum global standards for safe and ethical use of AI in business sectors. Additionally, the digital measures will help to adopt and implement the EU-wide space law and the continental strategy on “space data economy”.
Example in energy transition: hydrogen
Hydrogen is one of the key technologies of the European net-zero legislation and management: hence, it is extremely vital to decarbonise industrial development in the EU member states in order to reach the EU’s 2030 climate targets and, particularly ambitious 2050-goal in climate neutrality.
Thus, generally, – by 2050 – the EU-27 strategic goals in energy sector are aimed to increase: a) four times the deployment of renewables; b) six times the deployment of heat pumps, and c) fifteen times increase in the electric vehicles’ production.
More in: https://state-of-the-union.ec.europa.eu/index_en
By scaling up economic growth and producing electricity, the EU-27 states will, at the same time, reduce the use of fossil fuels in business, industries and serves. Hence, the European Hydrogen Bank, EHB created for that purpose, will support the uptake of renewable hydrogen in the states and manage imports from international partners.
The EHB’s ultimate aim is to unlock private investments in hydrogen value chains by efficiently connecting renewable energy supply to demand and addressing the initial investment challenges.
Finally, the EHB will create an emerging European hydrogen market, while offering new growth opportunities and quality job creation; it will also help in reaching the EU’s hydrogen goals, in line with the REPowerEU plan and the EU-wide path to climate neutrality by 2050.