On 24 May, Jurģis Miezainis, Parliamentary Secretary of the Ministry of Economics, represented Latvia's position at the meeting of the European Union Competitiveness Council of Ministers on internal market and industry matters, held in Brussels, Belgium. At the sitting, the member states approved three draft Council conclusions concerning European industry, the single market and the European Court of Auditors' special report on public procurement in the EU.
The Council conclusions “A competitive European industry driving our green, digital and resilient future” are intended to set out guidelines for the development of industrial policy in the next legislative cycle of the European Commission, and consequently they cover a very broad range of issues. The conclusions pay particular attention to fostering innovation and to the availability of funding, so that EU industry does not lose its international competitiveness.
Latvia supported the adoption of the Council conclusions, stressing the need to ensure a strong and competitive EU industry driven by innovation. In the discussion, Parliamentary Secretary J. Miezainis of the Ministry of Economics set out Latvia's position and emphasised the role of state aid to businesses in keeping industry in Europe.
At the sitting, Jurģis Miezainis pointed out in particular that, while EU member states must not be drawn into a race with partner countries, a strong European state aid framework needs to be built. The EU should therefore focus on the following priorities:
- reducing the administrative burden in order to attract more investment;
- ensuring access to finance;
- establishing a supportive and well-targeted state aid system;
- lower energy costs;
- pursuing a trade policy that supports industry.
When it comes to the administrative burden, we must raise our ambitions – if we set ambitious targets, such as a 55% or greater reduction in emissions and other green objectives, we must go beyond the current target of cutting administrative and reporting requirements by 25%,” the Latvian representative said.
In Latvia's view, permitting issues for the roll-out of renewable energy sources (RES) should also be resolved more quickly if the environmental targets that have been set are to be met. As regards the implementation of Important Projects of Common European Interest (IPCEIs), procedures need to be simplified so that companies from smaller member states have greater opportunities to take part in them. State aid requires a system that ensures a level playing field and promotes overall economic development in every region of the EU.
In closing, addressing those present at the sitting, J. Miezainis stressed:
“It is important that the Competitiveness Council sends a clear message to our industries that we are all committed together to creating an environment that fosters innovation, supports sustainable development and improves the EU's global competitiveness.”
During the meeting, the member states' representatives also approved the Council conclusions “A single market for all”, which provide for the development of a new horizontal single market strategy with clear tasks and specific deadlines.
Latvia supported the Council conclusions and also submitted a proposal on the changes needed to align the reference to the Capital Markets Union with the European Council conclusions of 17–18 April 2024, which was backed by the Belgian Presidency and the member states. At the same time, Latvia stressed the need for the planned new single market strategy to set out concrete steps towards further integration and the removal of unjustified barriers, with clear deadlines. We also called for a more thorough examination of the integration of services, since services are essential to EU growth yet still face greater trade barriers within the EU than goods do.
We greatly appreciate the European Commission's commitment to reducing administrative barriers and reporting requirements by 25% and to removing other unnecessary administrative burdens. At the same time, I would point out that the growing number of regulations creates a growing administrative burden both for SMEs and for the authorities of the member states. Before introducing new regulations, we should therefore assess their impact on the market and the capacity of member states and SMEs to adopt them without creating confusion or an unnecessary burden,” J. Miezainis stressed at the sitting.
We believe that a fully functioning single market must be based on the principles of subsidiarity and proportionality, as it is essential to take national interests and differences into account. The single market must continue to be refined and developed with a view to the EU's future enlargement process, thereby strengthening the EU globally.