Geert Bourgeois on the European “Industrial Green Deal”: “A good thing, but Europe must not become protectionist”

The European Commission proposes the Green Deal Industrial Plan in response to the American Inflation The increase in the general price level. The original meaning (literally “to blow up”) is monetary inflation, which means that the amount of money increases. Today, inflation primarily refers to price inflation. This means an implicit monetary depreciation. This causes the purchasing power to drop. Inflation Reduction Act. That plan includes provision for more flexible rules on state aid, in response to the protectionist plans of the US. Geert Bourgeois, head of the European N-VA group delegation, is pleased that Europe is finally taking steps to strengthen the internal European market, but warns against excessive protectionism and debt accumulation. “The measures must be targeted, for example, for research and innovation.”

“In fact, it is unfortunate that Europe is only taking these measures now and in response to US plans. We should have done this on our own years ago. I have been striving for this for years, even when I was still Flemish Minister-President,” says Geert Bourgeois in a reaction on the De Ochtend radio show.

“It is finally about industrial policy”

“It is good that industrial policy is finally being discussed, about creating extra prosperity, jobs, etc. The EU has not done anything about them for far too long. There are good things in the Green Deal Industrial Plan. Most importantly, the EU is now fully completing its internal market. That will lead to additional growth and the expansion of the digital, energy, and transport markets.”

Still too many rules

However, there are still stumbling blocks, Bourgeois says: “The European regulatory burden must be reduced. The EU has managed to make ever more rules. That leaves no room for experiments, for new developments and permits. Things go much more smoothly in the US, which is why companies often move there.”

Watch out for internal competition within the EU

The agreement provides for easier rules on state aid. Here, too, Geert Bourgeois sees possible danger: “A level playing field is the crown jewel of the Union. At the time, we were able to convince smaller countries to join the EU, precisely by giving guarantees on the equal application of rules on state aid. With these new plans, we run the risk that particularly Germany and France might open up their wallets. We must watch out that this does not lead to internal competition within the European Union itself. So we must not simply let go of those rules on state aid.”

More debt or more taxes

The European Commission also wants to introduce a new fund for the Deal. “That can only lead to two things: either more debt or more taxes,” says Geert Bourgeois. “That plan goes too far. It is better to shift existing budgets – for example, from the Recovery Plan – and put much more effort into research and development. Those figures are lagging behind. Flanders is doing much better there, for example.”

No European protectionism

Finally, Bourgeois also warns against excessive protectionism on the part of the EU. “We are the last fighter for global rules-based free trade. That is better for stability in the world. Protectionism is detrimental to growth.”