Category: Europe

B10‑0278/2025

European Parliament resolution on the Clean Industrial Deal

(2025/2656(RSP))

The European Parliament,

– having regard to the Commission communication of 26 February 2025 entitled ‘The Clean Industrial Deal: A joint roadmap for competitiveness and decarbonisation’ (COM(2025)0085),

– having regard to the Commission communication of 26 February 2025 entitled ‘Action Plan for Affordable Energy’ (COM(2025)0079),

– having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030),

– having regard to the Commission communication of 5 March 2025 entitled ‘Industrial Action Plan for the European automotive sector’ (COM(2025)0095),

– having regard to the Commission communication of 11 December 2019 on the European Green Deal (COM(2019)0640),

– having regard to the questions to the Commission [XXXXX],

– having regard to Rules 142(5) and 136(2) of its Rules of Procedure,

– having regard to the motion for a resolution of the Committee on Industry, Research and Energy,

A. whereas the Clean Industrial Deal was presented at a time of a serious competitiveness crisis; whereas it was supposed to represent the first step towards a decisive shift in pace and approach in EU policies, in order to safeguard businesses and industrial capacity across the EU;

B. whereas European industry is facing fierce competition from global players, with competitors benefiting from public investment, lower energy prices and a favourable regulatory environment, which are factors that provide significant advantages and encourage the relocation of EU enterprises to non-EU countries; whereas in recent decades, the policies pursued by the Commission, causing overregulation in industrial matters and setting unreasonable and unattainable environmental targets, have contributed to the massive relocation of EU production to non-EU countries, resulting in significant job losses, desertification and deterioration of living conditions in certain regions, as well as a transfer of knowledge and increased dependencies in strategic sectors;

C. whereas the implementation of the Fit for 55 package and other legislation under the Green Deal imposes stringent targets for the reduction of CO2 emissions, which undermine European industrial competitiveness; whereas the policies related to the Green Deal have shown serious drawbacks, especially in the current competitiveness crisis, such that a change of approach, including by revising the targets set and comprehensively reviewing the current legislation, appears to be crucial;

1. Notes the publication of the Clean Industrial Deal and the announcement of upcoming initiatives by the Commission; expresses concern about their potential ineffectiveness and the risk of further harming the competitiveness of EU businesses; believes that forcing market change through legislative measures, rather than allowing it to be driven by business-led innovation, is a fundamentally flawed approach; calls for a decisive change of pace from the previous legislative term, including a thorough revision and repeal of pieces of legislation adopted under the framework of the Green Deal;

2. Calls, in any case, for the implementation of the economically harmful policies of the Green Deal to be suspended, to enable a re-evaluation of their objectives and application; urges the Commission, moreover, to refrain from proposing a legislative initiative for an intermediate target of 90 % reductions in net greenhouse gas emissions by 2040;

3. Expresses concern about the way in which the Commission drafts its legislative proposals and conducts impact assessments, which reveals a lack of full stakeholder involvement and in-depth analysis of the effects, including long-term, on competitiveness; stresses the importance of ensuring effective consultation with all stakeholders, including local and regional entities, in order to improve the accuracy of impact assessments, thus avoiding the need to revise regulations shortly after their adoption and reducing uncertainty in an environment already marked by the crisis;

4. Urges the Commission to engage in structured sectoral dialogue with industry representatives, academia, social partners and relevant stakeholders from energy-intensive sectors, as well as cross-border regional industrial clusters, to ensure that policies are aligned with real industrial needs and challenges; affirms that well-targeted industrial policy, starting from a review of the EU decarbonisation objectives, is crucial to ensure a strong industrial base and to create and maintain high-quality jobs in the EU; affirms its commitment to fostering stable and predictable industrial policies that take into account the impact on the competitiveness of EU companies, and commits to upholding the principle of technology neutrality when adopting such policies, as a cornerstone for building competitive European industry;

5. Notes the affordable energy action plan; strongly stresses the need for action aimed at reducing volatility and lowering the high energy prices that impact heavily on businesses and consumers; urges the Commission and the Member States, following adequate impact assessments and consultation with the stakeholders, to put forward ways to decouple electricity prices from fossil fuel prices; warns against Commission initiatives that could circumvent Treaty provisions assigning competence over the energy mix to the Member States;

6. Expresses concern about the overly excessive focus of EU policies on electrification and renewables, which has been reaffirmed with the Clean Industrial Deal; states the need to promote a diversified energy mix that includes clean and low-carbon energy, in order to ensure security of energy supply and competitiveness; emphasises that relying solely on electrification will be extremely challenging for energy-intensive industries; stresses the indispensable role that natural gas will continue to play in the energy mix; reiterates the need to develop measures to ensure gas supply at a mitigated cost and calls on the Commission to ensure an improved, stable and certain regulatory framework; deplores the proposal to eliminate all subsidies for fossil fuels;

7. Acknowledges that the electricity grid infrastructure plays an essential role in achieving the EU’s strategic autonomy; calls on the Member States to fully explore, optimise, modernise and expand their electricity grid capacities, including transmission and distribution, with technological neutrality as a core principle; considers electricity grids to be a central element in the transition to a competitive economy;

8. Recalls the large-scale blackout that affected the Iberian Peninsula on 28 April 2025, leaving over 50 million people without electricity for several hours and causing severe disruption to transport, telecommunications and essential services; underlines that, at the time of the incident, renewable energy accounted for approximately 70 % of Spain’s electricity mix, and that only a few days earlier, on 16 April, the Spanish grid had operated entirely on renewable energy; highlights the fact that the blackout was caused by multiple factors, including the excessively high share of variable renewables, which contribute less to grid inertia compared to conventional power plants, making it more difficult to manage sudden frequency changes; strongly affirms, as a consequence, the need to adopt a technologically neutral approach in the planning, development and strengthening of electricity networks, in order to enable the safe integration of all technologies that support grid stability, especially in the context of growing energy demand; calls on the Member States to strengthen risk assessments related to systemic electricity shocks and to promote resilient, secure and technologically diversified grid models;

9. Stresses the fundamental role that low-carbon hydrogen can play; calls for the swift adoption and implementation of a simple, technology-neutral and investment-friendly definition of low-carbon hydrogen in the upcoming delegated act[1], while ensuring that such a definition is robust and science-based, and incentivises hydrogen production; recognises that carbon management, including capture, storage, transport and utilisation, can play a role for hard-to-abate sectors;

10. Supports the proposal to strengthen a European preference in public procurement processes, in the context of the revision of the public procurement framework in 2026, to the benefit of European businesses; considers this to be essential for enhancing supply chain security and fostering a resilient EU industrial base; remains strongly sceptical about the announced industrial decarbonisation accelerator act and about the extension of new sustainability criteria to the EU budget and national support programmes, as well as to public and private procurement benefiting energy-intensive industries; remains critical of the proposal to introduce new environmental criteria in addition to the many that are already in place, as well as the introduction of environmental labelling for industrial products, which risks creating additional administrative burdens for companies;

11. Affirms the need to create a favourable environment for investment that is capable of discouraging the relocation of industrial activities outside the EU; recognises the importance of increasing and encouraging both public and private investment in the energy, industry and transport sectors; takes note of the announced creation of a competitiveness fund and calls for this to be an instrument of genuine support for businesses; calls for an EU State aid framework in support of industrial transformation and modernisation, in line with the principle of technology neutrality, also enabling existing plants to access funding for technology upgrades, thereby safeguarding employment and economic stability; expects the new framework to address these needs; expresses its firm opposition to any new own resources and EU-level taxes;

12. Notes the plan for the automotive sector and the measure for additional flexibility for the calculation of manufacturers’ compliance with CO2 emissions performance standards; considers this insufficient and largely inadequate to address the challenges faced by the sector; urges the Commission to promptly review Regulation (EU) 2019/631[2], particularly by lifting the ban on combustion engine vehicles and removing the sanctions regime; strongly emphasises that technological neutrality is crucial for ensuring sustainable and competitive industry, and calls, therefore, on the Commission to revise the regulation accordingly by fully considering all relevant technological developments, including biofuels;

13. Notes that raw materials supply remains a strategic vulnerability, with the EU heavily dependent on non-EU suppliers for critical raw materials, requiring an urgent scaling-up of domestic mining, refining and battery recycling capabilities in a technology neutral, publicly accepted way; recalls the need to implement the Critical Raw Materials Act[3] and the Net Zero Industry Act[4] properly and to significantly strengthen industrial and raw materials diplomacy to access new markets via trade and partnership agreements, as well as special critical raw materials access agreements; stresses the crucial importance of catalysing investment to develop a domestic supply chain, ensuring its competitiveness and strategic autonomy;

14. Stresses that the European Court of Auditors has highlighted[5] the Commission’s inability to achieve the target of capturing 20 % of the global semiconductor market by 2030 through the Chips Act[6]; calls, therefore, on the Commission to confront reality and revise its strategy accordingly, by setting clearer and more measurable objectives, ensuring proportionate and secured funding and promoting the integration of small and medium-sized enterprises (SMEs) throughout the entire semiconductor value chain;

15. Stresses that EU industry is struggling not only a result of European environmental policies but also because of the overregulation that characterised the previous legislative term; urges the Commission to launch a broad process of genuine simplification and, where appropriate, deregulation; endorses simplification and digitalisation for speeding up administrative procedures; notes the omnibus simplification packages recently presented by the Commission; observes that these highlight flawed or missing impact assessments in the adoption of a number of major legislative measures during the previous term, such as the Corporate Sustainability Reporting Directive[7] and the Corporate Sustainability Due Diligence Directive[8]; affirms the need, in the current context of overregulation and excessive administrative burdens, as well as heavy obligations on businesses, to repeal this legislation; underlines, in any event, the importance of safeguarding smaller enterprises;

16. Affirms the need to create a truly enabling environment for SMEs, which have been particularly affected by the crisis and represent 99 % of all European businesses; recalls the importance of avoiding any form of discrimination against small businesses that choose to remain small, while continuing to contribute to the economic and social prosperity of the territories in which they operate; calls for accessible funding for SMEs and small mid-caps and further improvements and harmonisation to simplify funding applications, reduce reporting obligations and fast-track small projects; stresses that the new EU-level statute for small mid-caps must not compromise or alter the current classification of micro, small and medium-sized enterprises; underlines that the establishment of the small mid-caps category should not divert attention or resources away from micro and small enterprises, which have distinct needs and priorities; calls, therefore, on the Commission to adopt the necessary measures and safeguards, and to establish thresholds that reflect the actual conditions regarding turnover and number of employees in the Member States;

17. Notes the proposed simplification of the carbon border adjustment mechanism (CBAM) in the first omnibus package; recalls that the CBAM was introduced to compensate for the effect of the EU emissions trading system (ETS) in order to tackle carbon leakage; underlines that the CBAM, as currently designed, in parallel with the phasing out of the ETS free allowances, will not ensure a level playing field and will undermine competitiveness by increasing production costs and the administrative burden for EU companies; calls for the ETS and the CBAM to be entirely reassessed in the upcoming revision;

18. Expresses concern about the ongoing negotiations on the reform of Regulation (EU) 2019/452[9], which establishes a framework for the screening of foreign direct investment into the Union; is particularly concerned about the excessive centralisation of control in the hands of the Commission at the expense of the authority of Member States, including those that already have effective national measures in place to protect strategic sectors that are crucial to national interest; underlines that national security and maintenance of public order are, in fact. exclusive Member State competences;

19. Stresses the critical importance of preserving industrial activity and employment in the EU; warns that misguided industrial policies can have severe repercussions on jobs; underlines the urgent need to equip the European workforce with the necessary skills to adapt to the ongoing digital and industrial transformations, especially in remote and rural areas; calls for increased investment and a comprehensive industrial skills strategy; calls for the adoption of effective measures to address the alarming phenomenon of brain drain;

20. Instructs its President to forward this resolution to the Commission, the Council and the governments and parliaments of the Member States.