Securing and financing of strategic forward-looking investments

Recommendations for the European legislative period 2024-2029

Europe wants to become sovereign. However, goals and guidelines alone are not enough to become more independent in terms of economic, technological and security policy. The EU must now act and invest strategically in its future - with consistent and comprehensive programs for the digital and green transformation.

Strengthen European support for private investments

Considering the intensified international competition for technology leadership and production in key technologies of the green and digital transformation, European support for private investment in these fields must become faster, simpler, more flexible, and stronger in volume. This applies especially to the hydrogen economy and battery technologies.

Anchor the transformation of the economy more firmly in EU economic policy

The transformation of the economy, of an industry that will remain competitive in the future, must be more firmly anchored in the EU's economic policy measures. This requires appropriate instruments for industrial policy. In the internal market, the EU institutions must establish lead markets that are flanked by a broad range of instruments consisting of standardisation, internal market law and procurement.

Ensure funding for security policy and strategically important projects

For security policy and strategically important projects, the EU institutions must define political guidelines for economic security, develop a systematic needs analysis, adopt suitable packages of measures to achieve these goals and incentivise private investment in resilience where it cannot be achieved independently on the market. To this end, existing financing instruments must be increased, or new ones created. With the proposal on economic security, the European Commission has at least partially initiated a corresponding review process. A corresponding program will only be able to be comprehensively anchored in a new medium-term EU financial framework. In any case, it cannot be achieved satisfactorily from existing cohesion, innovation, or internal market approaches.

Strengthen budget-financed EU programmes

Credit-financed transitional solutions such as the NGEU should be replaced by budget-financed programmes. It must be made clear that these public tasks can be better and more efficiently addressed at European level. The question of their financing should then also be tackled head-on. Naturally, this should involve not only the EU budget, but all EU (and member state) funding channels, including the EIB, InvestEU and the Innovation Fund.

Accelerate the integration of financial markets

The EU institutions should finally push ahead with the fundamental deepening of integration in the financial markets as part of the realisation of the banking and capital markets union. In terms of content, the introduction of a digital euro could and should pave the way for greater efficiency in payment transactions, including for companies, in the medium term.

Improve IPCEI procedures

IPCEIs are an essential instrument for safeguarding European competitiveness and technological sovereignty and for promoting market-orientated innovations. However, the authorisation procedures must be simplified and accelerated. The European Commission should provide sufficient capacity for this. The IPCEI processes in the individual Member States are currently not synchronised and sometimes take place in several waves. There is an urgent need for better coordination and appropriate harmonisation, even in the pre-notification and notification phase.

Regularly review temporary aid schemes

The measures provided for in the Temporary Framework for crisis management and shaping change must be regularly reviewed to ensure that they are up to date and necessary. Depending on economic developments and the level of electricity and gas prices, further adjustments may be necessary.