Tomislav Sokol started work on the EU industrial law: It should protect industry and jobs

“The new law on the acceleration of industrial production represents a major turning point in European industrial policy, as it foresees stronger protection of European production through public procurement, control of foreign investments, development of industrial zones and strengthening of European supply chains. The goal is to achieve that the Union’s manufacturing industry accounts for at least 20 percent of the Union’s gross domestic product. With this package of industrial measures, Europe will, for the first time in a decade, clearly it says that it no longer wants to be an open market, but also a strong industrial force that actively protects its own production, technology and jobs. The new European approach is based on a simple logic: in the area of public procurement, this means that European public money will no longer end up with producers from countries that themselves do not open their markets to European companies. If other large economies protect their own industry and use public incentives for the development of domestic production, Europe no longer wants to be the only large economy that does not do so.”

At the same time, Sokol emphasized that the change does not only apply to public procurement, but also to the broader way in which Europe wants to protect its own strategic interests in the future.

“The big change also refers to the rules for foreign investment. Europe no longer wants a model in which foreign investors can simply buy or take over strategic European industries. The new approach says: if you want access to the European market, part of the technology, production, research, knowledge and jobs are expected to remain in Europe. An equally important segment relates to the development of industrial zones and accelerating the issuance of permits for strategic projects. “For too long, it has been synonymous with slow administrative procedures and multi-year waits for permits for new factories, energy infrastructure, and industrial plants. With the new law, we are changing that. If Europe wants to compete equally with the USA and China, it must be able to build faster, invest faster, and produce faster,” said Sokol.