DUBLIN — British Prime Minister Keir Starmer has finally found a friendly voice
in the White House— albeit one that speaks with an Irish accent.
When Taoiseach Micheál Martin visited the U.S. presidential mansion on Tuesday
for St. Patrick’s Day, Donald Trump took the opportunity at their joint press
conference to renew his verbal attacks on Starmer over the U.K. leader’s
unwillingness to join the U.S.-Israeli air assault on Iran. Referencing a bust
over his shoulder of Britain’s World War II leader, the president repeated his
insult that Starmer “is no Winston Churchill.”
The ultra-diplomatic and soft-spoken Martin picked that moment to interrupt a
nearly 20-minute monologue from Trump bashing Iran and NATO.
Martin noted that he had just hosted a productive summit with Starmer and other
senior U.K. ministers in his home city, Cork. He credited the Labour leader with
doing much to repair Anglo-Irish relations ravaged by Brexit. And he gently
reminded Trump that not so long ago, he had been singing Starmer’s praises.
“Keir Starmer has done a lot to reset the Irish-British relationship. I just
want to put that on the record,” Martin told Trump, a crystal bowl filled with
shamrock on the table between them. “I do believe that he’s a very earnest,
sound person that you have a capacity to get along with. You’ve got along with
him before.”
Martin then pivoted to criticism of Iran in the hope of averting a hostile
comeback from his host. It appeared to work, as Trump resumed bashing NATO — and
didn’t utter a single syllable critical of Ireland, which doesn’t even belong to
the transatlantic military alliance.
Irish officials confirmed to POLITICO that Martin had been determined not to
repeat the perceived mistake of German Chancellor Friedrich Merz when he visited
the White House earlier this month. Merz failed to defend Starmer and other
European allies when Trump belittled them in similar terms, drawing sharp
rebukes from the Spanish government.
Martin pulled off a second display of polite pushback on Tuesday after Trump
repeated claims that Europe was threatened by immigration: “It’s a different
place. Bad things have happened to Europe.”
Martin tapped Trump on the thigh to get his attention.
“Europe is still a very good place to live,” Martin said, prompting laughter in
the room as Trump retorted: “I’m glad to hear that!”
Martin then expanded on why Europe is so popular with migrants, noting the EU’s
“free mobility of people” and how it allows Ireland to attract newcomers “from
Europe and beyond” to swell its rapidly growing workforce.
“Fundamentally, sometimes Europe gets characterized wrongly in terms of it being
overrun,” he said in apparent reference to claims the Trump administration has
made, including in the president’s sit-down interview with POLITICO last
December.
The visiting Irish press pack, perhaps disappointed to have no anti-Irish
comments from Trump, twice tried to ask him about Irish President Catherine
Connolly’s recent condemnations of the U.S.-Israel attack on Iran.
Connolly — elected in October on an anti-government mandate — is a largely
ceremonial head of state who plays no role in Ireland’s government.
But Trump made it clear he had no clue who Connolly might be, far less her
criticisms.
“Who said that?” Trump asked a reporter, only to be told, without reference to
Connolly’s gender, that it was Ireland’s president.
“Look. He’s lucky I exist, that’s all I can say,” Trump said.
Tag - mobility
Dr. Daniel Steiners
This is not an obituary for Germany’s economic standing. It is an invitation to
shift perspective: away from the language of crisis and toward a clearer view of
our opportunities — and toward the confidence that we have more capacity to
shape our future than the mood indicators might suggest.
For years, Germany seemed to be traveling along a self-evident path of success:
growth, prosperity, the title of export champion. But that framework is
beginning to fray. Other countries are catching up. Parts of our industrial base
appear vulnerable to the pressures of transformation. And global dependencies
are turning into strategic vulnerabilities. In short, the German model of
success is under strain.
Yet a glance at Europe’s economic history suggests that moments like these can
also contain enormous potential — if strategic thinking and decisive action come
together. One example, which I find particularly striking, takes us back to
1900. At the time, André and Édouard Michelin were producing tires in a
relatively small market, when the automobile itself was still a niche product.
They could have focused simply on improving their product. Instead, they thought
bigger; not in silos, but in systems.
With the Michelin Guide, they created incentives and orientation for greater
mobility: workshop directories, road maps, and recommendations for hotels and
restaurants made travel more predictable and attractive. What began as a service
booklet for motorists gradually evolved into an entire ecosystem — and
eventually into a globally recognized benchmark for quality.
> In times of change, those who recognize connections and are willing to shape
> them strategically can transform uncertainty into lasting strength.
What makes this example remarkable is that the real innovation did not lie in
the tire itself or merely even a clever marketing idea to boost sales. It lay in
something more fundamental: connected thinking and ecosystem thinking. The
decision to see mobility as a broad space for value creation. It was the courage
to break out of silos, to recognize strategic connections, to deepen value
chains — and to help define the standards of an emerging market.
That is precisely the lesson that remains relevant today, including for
policymakers. In times of change, those who recognize connections and are
willing to shape them strategically can transform uncertainty into lasting
strength.
Germany’s industrial health economy is still too often viewed in public debate
in narrowly sectoral terms — primarily through the lens of health care provision
and costs. Strategically, however, it has long been an industrial ecosystem that
spans research, development, manufacturing, digital innovation, exports and
highly skilled employment. Just as Michelin helped shape the ecosystem of
mobility, Germany can think of health as a comprehensive domain of value
creation.
The industrial health economy: cost driver or engine of growth?
Yes, medicines cost money. In 2024, Germany’s statutory health insurance system
spent around €55 billion on pharmaceuticals. But much of that increase reflects
medical progress and the need for appropriate care in an aging society with
changing disease patterns.
Innovative therapies benefit both patients and the health system. They can
improve quality and length of life while shifting treatment from hospitals into
outpatient care or even into patients’ homes. They raise efficiency in the
system, reduce downstream costs and support workforce participation.
> In short, the industrial health economy is not merely part of our health care
> system. It is a key industry, underpinning economic strength, prosperity and
> the financing of our social security systems.
Despite public perception, pharmaceutical spending has remained remarkably
stable for years, accounting for roughly 12 percent of total expenditures in the
statutory health insurance system. That figure also includes generics —
medicines that enter the ‘world heritage of pharmacy’ after patent protection
expires and remain available at low cost. Truly innovative, patent-protected
medicines account for only about seven percent of total spending.
Against these costs stands an economic sector in which Germany continues to hold
a leading international position. With around 1.1 million employees and value
creation exceeding €190 billion, the industrial health economy is among the
largest sectors of the German economy. Its high-tech products, bearing the Made
in Germany label, are in demand worldwide and contribute significantly to
Germany’s export surplus.
In short, the industrial health economy is not merely part of our health care
system. It is a key industry, underpinning economic strength, prosperity and the
financing of our social security systems. Its overall balance is positive.
The central question, therefore, is this: how can we unlock its untapped
potential? And what would it mean for Germany if we fail to recognize these
opportunities while economic and innovative capacity increasingly shifts
elsewhere?
Global dynamics leave little room for hesitation
Governments around the world have long recognized the strategic importance of
the industrial health economy — for health care, for economic growth and for
national security.
China is demonstrating remarkable speed in scaling and implementing
biotechnology. The United States, meanwhile, illustrates how determined
industrial policy can look in practice. Regulatory authorities are being
modernized, approval procedures accelerated and bureaucratic barriers
systematically reduced. At the same time, domestic production is being
strategically strengthened. Speed and market size act as magnets for capital —
especially in a sector where research is extraordinarily capital-intensive and
requires long-term planning security.
When innovation-friendly conditions and economic recognition of innovation meet
a large, well-funded market, global shifts follow. Today roughly 50 percent of
the global pharmaceutical market is located in the United States, about 23
percent in Europe — and only 4 to 5 percent in Germany. This distribution is no
coincidence; it reflects differences in economic and regulatory environments.
At the same time, political pressure is growing on countries that benefit from
the American innovation engine without offering an equally attractive home
market or recognizing the value of innovation in comparable ways. Discussions
around a Most Favored Nation approach or other trade policy instruments are
moving in precisely that direction — and they affect Europe and Germany
directly.
For Germany, the implications are clear.
Those who want to attract investment must strengthen their competitiveness.
Those who want to ensure reliable health care must appropriately reward new
therapies.
Otherwise, these global dynamics will inevitably affect both the economy and
health care at home. Already today, roughly one in four medicines introduced in
the United States between 2014 and 2023 is not available in Europe. The gap is
even larger for gene and cell therapies.
The primacy of industrial policy: from consensus to action — now
Germany does not lack potential or substance. We still have a strong industrial
base, a tradition of invention, outstanding universities and research
institutions, and a private sector willing to invest. Political initiatives such
as the coalition agreement, the High-Tech Agenda and plans for a future strategy
in pharmaceuticals and medical technology provide important impulses, which I
strongly welcome.
> A fair market environment without artificial price caps or rigid guardrails is
> the strongest magnet for private capital, long-term investment and a resilient
> health system.
But programs must now translate into a coherent action plan for growth.
We need innovation-friendly and stable framework conditions that consider health
care, economic strength and national security together — as a strategic
ecosystem, not as separate silos.
The value of medical innovation must also be recognized in Germany. A fair
market environment without artificial price caps or rigid guardrails is the
strongest magnet for private capital, long-term investment and a resilient
health system.
Faster approval procedures, consistent digitalization and a determined reduction
of bureaucracy are essential if speed is once again to become a competitive
advantage and a driver of innovation.
Germany can reinvent itself, of that I am convinced. With courage, strategic
determination and an ambitious push for innovation.
The choice now lies with us: to set the right course and unlock the potential
that is already there.
Germany’s Friedrich Merz and Poland’s Donald Tusk are among a group of EU
leaders urging Brussels to tighten visa rules for Russian nationals with combat
experience in Ukraine.
In a letter to European Council President António Costa and European Commission
President Ursula von der Leyen, eight leaders warned that Moscow’s war on
Ukraine is creating longer-term internal security risks for the EU’s Schengen
free-movement area.
They argue that demobilized or rotating combatants, including thousands
recruited from prisons, could seek to travel to EU countries, potentially
fueling organized crime, violent offences or hostile state activity. They say
rising numbers of visas issued to Russian nationals add urgency to the issue.
Russian nationals filed some 620,000 to 670,000 Schengen visa applications in
2025, according to travel-industry estimates, ranking among the top five
nationalities seeking entry to the EU. Roughly four in five applicants received
a visa.
“Any entry may therefore have serious consequences for the security of a Member
State or the entire Schengen area,” the letter states.
The initiative, also backed by Estonia, Finland, Latvia, Lithuania, Romania and
Sweden, calls on the Commission to prepare targeted visa restrictions and
explore changes to EU rules enabling coordinated entry bans. EU countries have
already tightened access in recent years, with most visas now issued for shorter
stays and more limited validity.
BRUSSELS — The EU and U.K. must overcome historic gripes and “reset” their
relationship to be able to work together in an increasingly uncertain world, the
bloc’s top parliamentarian said.
European Parliament President Roberta Metsola used an address to the Spanish
senate on Tuesday to call for closer ties with the U.K. as London steps up
efforts to secure smoother access to European markets and funding projects,
after the country voted to leave the bloc in 2016.
“Ten years on from Brexit … and in a world that has changed so profoundly,
Europe and the U.K. need a new way of working together on trade, customs,
research, mobility and on security and defense,” Metsola said. “Today it is time
to exorcize the ghosts of the past.”
Metsola called for a “reset” in the partnership between Britain and the EU as
part of a policy of “realistic pragmatism anchored in values that will see all
of us move forward together.”
Her speech comes after British Prime Minister Keir Starmer said he intended to
try and ensure his country’s defense industries can benefit from the EU’s
flagship SAFE scheme — a €150 billion funding program designed to boost
procurement of military hardware.
That push has been far from smooth, with a meeting of EU governments on Monday
night failing to sign off U.K. access to SAFE, despite France — which has
consistently opposed non-EU countries taking part — supporting the British
inclusion.
Starmer has also signaled in recent days that he is seeking closer integration
with the EU’s single market. Brussels has so far been reluctant to reopen the
terms of the U.K.’s relations with the bloc just six years after it exited.
While those decisions lie with the remaining 27 EU member countries, rather than
the Parliament, Metsola’s intervention marks a shift in tone that could bolster
the British case for closer relations. In the context of increasingly tense
relations with the U.S., capitals are depending on cooperation with British
intelligence and military capabilities and in key industries.
Europe must take “the next steps towards a stronger European defense, boosting
our capabilities and cooperation, and working closely with our NATO allies so
that Europe can better protect its people,” Metsola said.
German industrial giant Bosch on Friday confirmed plans to cut 20,000 jobs after
profits nearly halved last year, underlining the mounting strain on Germany’s
once-dominant manufacturing sector and increasing the pressure on politicians in
Berlin to find a solution.
Official data released Friday also showed Germany’s unemployment rate,
unadjusted for seasonal factors, rising to 6.6 percent — the highest level in
twelve years. The number of unemployed people surpassed three million in
January.
“Economic reality is also reflected in our results,” Bosch CEO Stefan Hartung
said, describing 2025 as “a difficult and, in some cases, painful year” for the
company, which is a leading supplier of parts for cars.
The move lands amid a deepening slump in the country’s automotive industry, long
the backbone of German manufacturing. The sector has been shedding jobs rapidly:
A 2025 study by EY found that more than 50,000 automotive positions were cut in
Germany last year alone.
Germany’s automotive downturn has become a wider political test for the
government in Berlin and Europe more widely. Once the economy’s crown jewel, the
industry is now being challenged by current policy on electric vehicles, energy
costs and aggressive competition from Chinese manufacturers.
As suppliers weaken, the risk is shifting from lower profits to a lasting loss
of competitiveness. With layoffs rising and investment decisions being delayed,
Chancellor Friedrich Merz’s government is coming under growing pressure from
workers, unions and industry leaders to rethink Germany’s industrial strategy —
as doubts spread domestically and across Europe about the country’s ability to
remain an economic powerhouse.
The U.S. has launched a series of large-scale air and missile strikes on Islamic
State targets in Syria in retaliation for the killing of two U.S. soldiers in
the country this month.
The strikes are being conducted by F-15 and A-10 aircraft and High Mobility
Artillery Rocket System rockets, and have already hit over 70 targets, according
to a U.S. military official who spoke on the condition of anonymity to discuss
an ongoing operation.
The operation is being called “Hawkeye Strike” in acknowledgement of the two
Iowa Army National Guard soldiers and a U.S. civilian working as an interpreter
who were killed Dec. 13 in an ambush the U.S. has blamed on ISIS.
Defense Secretary Pete Hegseth wrote on X late Friday that “this is not the
beginning of a war — it is a declaration of vengeance.”
U.S. Central Command said in a statement this week that operations against ISIS
over the past six months have killed 14 insurgents and captured 119.
While the official wouldn’t comment on a timeline for the strikes, Hegseth wrote
that “today, we hunted and we killed our enemies. Lots of them. And we will
continue.”
LONDON — British students will once again be able to take part in the EU’s
Erasmus+ exchange scheme from January 2027 — following a six-year hiatus due to
Brexit.
U.K. ministers say they have secured a 30 percent discount on payments to
re-enter the program that strikes “a fair balance between our contribution and
the benefits” it offers.
The move is one of the first tangible changes out of Keir Starmer’s EU “reset,”
which is designed to smooth the harder edges off Boris Johnson’s Brexit
settlement while staying outside the bloc’s orbit.
In an announcement on Wednesday Brussels and London also confirmed they were
formally beginning negotiations on U.K. re-entry into the EU’s internal market
for electricity.
Both sides hope the move, which was called for by industry in both sides of the
Channel, will cut energy bills while also making it easier to invest in North
Sea green energy projects — which have been plagued by Brexit complications.
They also pledged to finish ongoing talks on linking the U.K. and EU carbon
trading systems, as well as a new food and drink (SPS) deal, by the time they
meet for an EU-U.K. summit in 2026.
The planned meeting, which will take place in Brussels, does not yet have a date
but is expected around the same time as this year’s May gathering in London.
The announcements give more forward momentum to the “reset,” which faltered
earlier this month after failing to reach an agreement on British membership of
an EU defense industry financing program, SAFE. The two sides could not agree on
the appropriate level of U.K. financial contribution.
The pledge to finalize carbon trading (ETS) linkage next year is significant
because it will help British businesses avoid a new EU carbon border tax — CBAM
— which starts from Jan. 1 2026.
While the tax, which charges firms for the greenhouse gas emissions in their
products, begins on Jan. 1, payments are not due until 2027, by which time the
U.K. is expected to be exempt.
But it is not yet clear whether British firms will have to make back payments on
previous imports once the deal is secured, and there is no sign of any deal to
bridge the gap.
WIDENING HORIZONS
EU Relations Minister Nick Thomas-Symonds, who negotiated the agreement, said
the move was “a huge win for our young people” and would break down barriers and
widen horizons so that “everyone, from every background, has the opportunity to
study and train abroad.”
European Parliament President Roberta Metsola welcomes British Minister for the
Constitution and European Union Relations Nick Thomas-Symonds. | Ronald
Wittek/EPA
“This is about more than just travel: it’s about future skills, academic
success, and giving the next generation access to the best possible
opportunities,” he said.
“Today’s agreements prove that our new partnership with the EU is working. We
have focused on the public’s priorities and secured a deal that puts opportunity
first.”
The expected cost of the U.K.’s membership of the Erasmus+ program in 2027 will
be £570 million.
Skills Minister Jacqui Smith said Erasmus+ membership is “about breaking down
barriers to opportunity, giving learners the chance to build skills, confidence
and international experience that employers value.”
Liberal Democrat Universities Spokesperson Ian Sollom also welcomed U.K.
re-entry into the exchange scheme but said it should be a “first step” in a
closer relationship with the EU.
“This is a moment of real opportunity and a clear step towards repairing the
disastrous Conservative Brexit deal,” he said.
“However while this is a welcome breakthrough, it must be viewed as a crucial
first step on a clear roadmap to a closer relationship with Europe. Starting
with negotiating a bespoke UK-EU customs union, and committing to a youth
mobility scheme for benefit of the next generation.”
HELSINKI — Eight EU countries on the front line with Russia demanded Tuesday
that Brussels accelerate its upcoming counter-drone and border defense
initiatives amid ongoing opposition to the projects by some European capitals.
Their call for “immediate prioritization” of two projects proposed by Brussels
as part of its plans to make the bloc war-ready by 2030 comes ahead of a crucial
summit of the EU’s 27 countries on Thursday that could determine their fate.
“Russia remains a threat to Europe today, tomorrow and in the near future,” said
Finnish Prime Minister Petteri Orpo, who convened Tuesday’s gathering. “The
build-up of European defence will not happen or continue unless we, as states on
the EU’s eastern border, make our voices heard.”
The two so-called flagship projects, dubbed the Eastern Flank Watch and European
Drone Defence Initiative, were first floated by the European Commission in
October as part of its “roadmap” to make the EU ready for war with Russia by the
end of the decade.
Referencing the projects and the bloc’s broader defense plans, Orpo said he was
“confident that we will continue this discussion at the upcoming European
Council later this week.”
But an official from the French Elysée told reporters Tuesday that “discussions
on flagship defense projects are not planned” at Thursday’s meeting. Instead,
the official added, countries are “organizing ourselves intergovernmentally and
through the NATO process.”
The initiatives need endorsement from EU leaders before they can be launched
early next year. Alongside France, the projects also previously received a
lukewarm reception from countries like Germany and Hungary, who see the plans as
a potential power grab by Brussels.
EU leaders failed to endorse the initiatives at the last summit in October, and
so far, have not indicated they would shift their stance, according to draft
summit conclusions seen by POLITICO and dated Dec. 16.
There was more consensus among the countries attending Tuesday’s summit —
Finland, Sweden, Poland, Estonia, Lithuania, Latvia, Romania and Bulgaria — who
also agreed the flagship projects should ideally fund ground combat
capabilities, drone air and drone defense, border protection efforts and easing
military mobility across the bloc.
“This is one of the most solid and responsible political formats,” Polish Prime
Minister Donald Tusk told reporters after the summit. “We have very challenging
neighborhood countries and we understand each other really, really perfectly …
It means that it’s pretty easy for all of us to cooperate.”
FROZEN OUT
That display of unity was somewhat overshadowed by one anomaly in the group.
Last week, Bulgaria signed a letter, alongside Malta and Italy, voicing its
opposition to the EU’s plan to unblock a €210 billion loan for Ukraine drawing
on Russia’s frozen assets — a proposal that’s likely to be determined at the
meeting of the bloc’s 27 countries on Thursday.
In the closed-door meeting of the frontline leaders on Tuesday, Bulgaria’s
outgoing Prime Minister Rosen Zhelyazkov remained silent as his counterparts
expressed their support for the frozen assets plan, according to a person inside
the room, who was granted anonymity to speak freely.
But others played down that division. “I’m not frustrated because Bulgaria
internally has been in a very difficult situation politically,” Latvian Prime
Minister Evika Siliņa said in an interview, referencing the fact Zhelyazkov
resigned last week amid mass protests against his government.
“It’s good that actually the prime minister came today and showed his unity
because it’s important that we can work together,” she told POLITICO.
Gabriel Gavin contributed to this report from Brussels.
Europe’s chemical industry has reached a breaking point. The warning lights are
no longer blinking — they are blazing. Unless Europe changes course immediately,
we risk watching an entire industrial backbone, with the countless jobs it
supports, slowly hollow out before our eyes.
Consider the energy situation: this year European gas prices have stood at 2.9
times higher than in the United States. What began as a temporary shock is now a
structural disadvantage. High energy costs are becoming Europe’s new normal,
with no sign of relief. This is not sustainable for an energy-intensive sector
that competes globally every day. Without effective infrastructure and targeted
energy-cost relief — including direct support, tax credits and compensation for
indirect costs from the EU Emissions Trading System (ETS) — we are effectively
asking European companies and their workers to compete with their hands tied
behind their backs.
> Unless Europe changes course immediately, we risk watching an entire
> industrial backbone, with the countless jobs it supports, slowly hollow out
> before our eyes.
The impact is already visible. This year, EU27 chemical production fell by a
further 2.5 percent, and the sector is now operating 9.5 percent below
pre-crisis capacity. These are not just numbers, they are factories scaling
down, investments postponed and skilled workers leaving sites. This is what
industrial decline looks like in real time. We are losing track of the number of
closures and job losses across Europe, and this is accelerating at an alarming
pace.
And the world is not standing still. In the first eight months of 2025, EU27
chemicals exports dropped by €3.5 billion, while imports rose by €3.2 billion.
The volume trends mirror this: exports are down, imports are up. Our trade
surplus shrank to €25 billion, losing €6.6 billion in just one year.
Meanwhile, global distortions are intensifying. Imports, especially from China,
continue to increase, and new tariff policies from the United States are likely
to divert even more products toward Europe, while making EU exports less
competitive. Yet again, in 2025, most EU trade defense cases involved chemical
products. In this challenging environment, EU trade policy needs to step up: we
need fast, decisive action against unfair practices to protect European
production against international trade distortions. And we need more free trade
agreements to access growth market and secure input materials. “Open but not
naïve” must become more than a slogan. It must shape policy.
> Our producers comply with the strictest safety and environmental standards in
> the world. Yet resource-constrained authorities cannot ensure that imported
> products meet those same standards.
Europe is also struggling to enforce its own rules at the borders and online.
Our producers comply with the strictest safety and environmental standards in
the world. Yet resource-constrained authorities cannot ensure that imported
products meet those same standards. This weak enforcement undermines
competitiveness and safety, while allowing products that would fail EU scrutiny
to enter the single market unchecked. If Europe wants global leadership on
climate, biodiversity and international chemicals management, credibility starts
at home.
Regulatory uncertainty adds to the pressure. The Chemical Industry Action Plan
recognizes what industry has long stressed: clarity, coherence and
predictability are essential for investment. Clear, harmonized rules are not a
luxury — they are prerequisites for maintaining any industrial presence in
Europe.
This is where REACH must be seen for what it is: the world’s most comprehensive
piece of legislation governing chemicals. Yet the real issues lie in
implementation. We therefore call on policymakers to focus on smarter, more
efficient implementation without reopening the legal text. Industry is facing
too many headwinds already. Simplification can be achieved without weakening
standards, but this requires a clear political choice. We call on European
policymakers to restore the investment and profitability of our industry for
Europe. Only then will the transition to climate neutrality, circularity, and
safe and sustainable chemicals be possible, while keeping our industrial base in
Europe.
> Our industry is an enabler of the transition to a climate-neutral and circular
> future, but we need support for technologies that will define that future.
In this context, the ETS must urgently evolve. With enabling conditions still
missing, like a market for low-carbon products, energy and carbon
infrastructures, access to cost-competitive low-carbon energy sources, ETS costs
risk incentivizing closures rather than investment in decarbonization. This may
reduce emissions inside the EU, but it does not decarbonize European consumption
because production shifts abroad. This is what is known as carbon leakage, and
this is not how EU climate policy intends to reach climate neutrality. The
system needs urgent repair to avoid serious consequences for Europe’s industrial
fabric and strategic autonomy, with no climate benefit. These shortcomings must
be addressed well before 2030, including a way to neutralize ETS costs while
industry works toward decarbonization.
Our industry is an enabler of the transition to a climate-neutral and circular
future, but we need support for technologies that will define that future.
Europe must ensure that chemical recycling, carbon capture and utilization, and
bio-based feedstocks are not only invented here, but also fully scaled here.
Complex permitting, fragmented rules and insufficient funding are slowing us
down while other regions race ahead. Decarbonization cannot be built on imported
technology — it must be built on a strong EU industrial presence.
Critically, we must stimulate markets for sustainable products that come with an
unavoidable ‘green premium’. If Europe wants low-carbon and circular materials,
then fiscal, financial and regulatory policy recipes must support their uptake —
with minimum recycled or bio-based content, new value chain mobilizing schemes
and the right dose of ‘European preference’. If we create these markets but fail
to ensure that European producers capture a fair share, we will simply create
new opportunities for imports rather than European jobs.
> If Europe wants a strong, innovative resilient chemical industry in 2030 and
> beyond, the decisions must be made today. The window is closing fast.
The Critical Chemicals Alliance offers a path forward. Its primary goal will be
to tackle key issues facing the chemical sector, such as risks of closures and
trade challenges, and to support modernization and investments in critical
productions. It will ultimately enable the chemical industry to remain resilient
in the face of geopolitical threats, reinforcing Europe’s strategic autonomy.
But let us be honest: time is no longer on our side.
Europe’s chemical industry is the foundation of countless supply chains — from
clean energy to semiconductors, from health to mobility. If we allow this
foundation to erode, every other strategic ambition becomes more fragile.
If you weren’t already alarmed — you should be.
This is a wake-up call.
Not for tomorrow, for now.
Energy support, enforceable rules, smart regulation, strategic trade policies
and demand-driven sustainability are not optional. They are the conditions for
survival. If Europe wants a strong, innovative resilient chemical industry in
2030 and beyond, the decisions must be made today. The window is closing fast.
--------------------------------------------------------------------------------
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