Road to EU 2024

Fostering protection for EU industries: Séjourné’s stance against China’s industrial capacities

15
November 2024
By Editorial Staff

This week, the vice presidency hearings took place in the European Parliament. Amid the six meetings remaining for the new composition of the European Commission, the one of Stéphane Séjourné was one of the most important and he highlighted the need of protecting EU industries from excessive Chinese production and unfair competition from products that do not comply with EU standards.

One of the most relevant role for the new European Commission

“The excess capacity of China is killing our industry,” said Séjourné on China. In a strong defense of EU industry, the 39-year-old former French foreign affairs minister emphasized the urgent need to shield the European manufacturing sector from China’s overproduction and unfair competition, particularly from imports that fail to meet EU standards.

Throughout the hearing, he handled questions from a wide range of lawmakers on topics like competitivenessinvestmentsubsidies, and strategic sectors. Despite the tough questioning, particularly from political rivals like Manon Aubry (The Left) and Virginie Joron (Rassemblement National), he remained composed, leveraging familiar talking points and displaying a strong command of the issues, avoiding any significant missteps. His close ties with French President Emmanuel Macron and his confident performance underscored his political acumen.

“Europe needs to speed up, or it risks falling behind, with Europeans then feeling the consequences. This analysis is even more relevant since Donald Trump was elected. My goal is prosperity, and the common challenge will be competitiveness”, claims Séjourné.

Competitiveness through the single market

How is it possible to be competitive if “we currently have 27 markets instead of a single one”? That was one of the main focus on his hearing, as he adapts the discussion on the importance of having “a single, but most importantly a simple, market”.

“Our industrial policy – continues Séjourné – should be based on three key principles: simplification, smart investment, and strategic action. Competitiveness and industrial policy should not be pitted against each other; it must be about simplification. Throughout this term, I will prioritise SMEs and propose an SME passport to reduce the burden on businesses from having to provide repeated proofs. I want”.

To boost our innovation and economic growth, he said that “the Competitiveness Fund will play a key role in the Multiannual Financial Framework (MFF). The aim is to amplify investment. There will also be a competitiveness coordination tool to ensure we are all aligned”.

He was asked how big the European Competitiveness Fund should be and which aspects should be prioritized: “We will have to work on private funding to complement public funding. We need to explore innovative financial instruments. I hope that the fund will be able to target strategic policies effectively”.

In order to enhance competitiveness, he ends by saying that “Competitiveness starts by addressing companies’ needs, which is why we are focused on simplification. We want to jumpstart innovation. We cannot achieve autonomy if we are not competitive, and we need progress in both areas. The right tools, such as the Competitiveness Fund, will be essential”.

Public procurement deal

Séjourné has pledged to prioritize the long-awaited reform of EU public procurement rules, with consultations to begin soon. He echoed progressive lawmakers’ calls to focus on creating “quality jobs” and expressed openness to implementing mandatory social conditions in public tenders. Given that public procurement accounts for 14% of the EU’s GDP, the stakes are high, with trillions of euros involved.

The reform is aimed at bolstering Europe’s industrial base, particularly its struggling manufacturing sector, which has faced intense global competition. Séjourné highlighted strategic industries like steel, aluminum, and chemicals, signaling these could receive greater protection under the revised rules. This approach aligns with left-wing priorities of enhancing social conditions and securing better jobs while strengthening EU industrial capacity.

Conclusion of the hearing

In his closing remarks, Stéphane Séjourné painted a picture of a struggling European industry, noting that key sectors like clean tech, the circular economy, and digital industries are not growing quickly enough. He acknowledged an “urgent need for support in some areas” and stressed the importance of swift action to help these industries catch up.

Shifting to a broader perspective, Séjourné reflected on the current “turbulent times” but reminded the audience of Europe’s resilience, citing the creation of the European Steel and Coal Community after World War II. Despite differing views on the future of the EU, he emphasized a shared responsibility to work together for the sake of future generations.