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“Come together as Europeans to defend industry”
EU members need to deploy joint strategies to defend industry in face of global competition that is not always fair, argues Philipp Lausberg, Senior Policy Analyst at the European Policy Centre, in an interview with The Mobility Times
0:00 The European Union needs to be much more assertive when it comes to supporting its industry. 0:11 The current global economic order is no longer based on the free exchange of goods, liberal markets and common rules. Instead, it is increasingly shaped by competition between major powers. 0:20 We see large economies such as the United States and China using economic relations as strategic tools. 0:32 This is putting pressure on Europe’s mobility industry. In areas such as electric vehicles, battery technology and software, the European Union is lagging behind. 0:44 We need to protect our industry more effectively. 0:46 The European Union already has instruments at its disposal, such as the Foreign Subsidies Regulation, the Anti-Coercion Instrument and a comprehensive investment screening framework. There is still much that can be done with these tools. 1:02 At the same time, Europe needs strong international partners to support its industries, particularly in the mobility sector. 1:09 The European Union should work much more closely with these partners to integrate value chains and strengthen its industrial base. 1:15 By building on shared value chains and deeper cooperation, Europe can better support the long-term competitiveness of its mobility industry.
The Mobility Times: What should the EU do to develop and protect its mobility sector?
“The European Union needs to be much more assertive when it comes to supporting its industry, promoting it via strategic investments, via a strategic and well-coordinated industrial policy that includes promotion of demand, support of industry and also massive investment in infrastructure. When it comes to battery technology, when it comes to software, the EU is behind, and also when it comes to infrastructure. China is increasingly dominating electric vehicle value chains, the United States with their tariff policy takes away export markets from the EU, and cheap Chinese exports to the EU in the mobility sphere are putting pressure on the European car industry and bus industry.”
Philipp Lausberg
Senior Policy Analyst, European Policy Centre.
What specific tools does the EU have to protect its industries?
The European Union has instruments like the foreign subsidies regulation. It has the anti‑coercion instrument. It has an elaborate system of investment screening.
Are those tools being used effectively?
They are not being applied enough and can be refined. So there's a lot to be done there. It has to do with political will among member states mainly. Member states need to forget a bit more about their individual interest, and come together as Europeans to defend their industry.
How should public procurement be used?
There's a case to be made to move away from just price criteria and use that lever that is 15% of European GDP in purchasing power to support European industry. That doesn't have to be done, for example, through direct localisation rules. It can also be done through standards in sustainability, in labour conditions. It can be done through reducing dependency on one particular provider and so on.
What about demand‑side measures to boost European mobility products?
One could argue for consumer subsidies, to promote procurement of made‑in‑Europe mobility products.
How does the global economic landscape affect EU mobility industries?
The current global economic order is not exactly to the advantage of the EU structures. The EU was not built for this order, which is no longer built on the free exchange of goods, on liberal markets and rules, but is increasingly dominated by great power competition and the use of economic instruments for increasing power relations.
Who are Europe's main competitors and what pressures do they exert?
There is massive investment in industrial policy, especially in the EU's main competitors, the US and China. China is pouring vast amounts of subsidies into electric vehicle value chains, into raw materials, into batteries and so on, and the US, for example, invests massively in AI. All these tools are relatively new, and they are putting pressure on the EU's mobility industry.
Should Europe seek more partnerships?
Europe needs strong partners in the world to support its industry, especially in mobility. These partners need to be reliable. Ideally, they should be like‑minded. The European Union should aim to integrate more closely with them when it comes to trade, when it comes to industrial policy, when it comes to standards, and also when it comes to foreign policy.
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