The European Commission presented a new industrial strategy known as the Clean Industrial Deal (CID). This move is a direct response to the global return to stronger industrial policies and, in particular, to the loss of the EU's competitiveness against China and the United States, which was also highlighted by Draghi's 2024 report. Resources they state that CID represents a fundamental shift from previous market-oriented approaches to more targeted and proactive state intervention.

Triple objective and key elements

According to available sources, the CID is based on three central objectives: increasing competitiveness, mitigating climate change and strengthening economic resilience (security). To achieve these goals, the strategy defines six basic elements:

1. Available energy.
2. Lead markets.
3. Financing.
4. Circularity and access to materials.
5. Global markets and international partnerships.
6. Skills.

Sources emphasize that for this policy to be successful, it is essential not only to innovate but also to transform existing energy-intensive industries. A modern industrial policy should simultaneously seek new opportunities (e.g. in clean technologies) while maintaining employment stability in older sectors until the new ones reach the necessary scale.

Synergies and tensions in industrial tools

The implementation of CID brings various synergies, but also potential conflicts between the three main objectives. For example support for industrial clusters and investment in education are seen as clearly beneficial for both competitiveness and sustainability. On the other hand, tools such as import duties While they may protect domestic industry, they may slow down the transformation in the short term by increasing the prices of clean technology components imported from third countries.

The important point is acceleration of permitting processes for strategic projects, which is essential for the rapid development of renewables and new infrastructure. However, sources warn that this acceleration must not bypass democratic decision-making or environmental protection standards.

Energy dilemma

The CID also includes Affordable Energy Action Plan (AEAP). It aims to lower electricity costs for industry, which supports competitiveness and electrification. However, there is a risk that if low prices are achieved through subsidies without pressure on energy efficiency, this could slow down long-term innovation in energy saving and the circular economy. The sources therefore recommend that support should focus on energy efficiency and clean solutions rather than subsidizing consumption in inefficient operations.

Directionality From a sustainable transformation research perspective, sources emphasize the need for directionality. The public sector must clearly set ambitious visions and goals that will guide the development of markets and innovation. This includes the ability to "pick winners" through strategic investments in clusters, but while maintaining openness to different technical solutions at early stages.

An important aspect is also strengthening public sector capacities. Successful industrial policy requires competent officials able to experiment, learn from failures and coordinate policies across different domains such as trade, climate and security.

The Clean Industrial Deal is an ambitious framework that seeks win-win-win solutions for Europe. The key to success will be to maintain a balance between: Industrial policy must not sacrifice climate goals for short-term economic gains, because the EU's long-term stability and security directly depend on successful decarbonisation and protection of the natural environment. JRi

We can imagine it like navigating a ship in stormy seas: competitiveness is the engine that drives us forward, but sustainability and safety are the compass and hull of the ship that ensure we don't sink and arrive at the right destination.