Competitiveness Council (internal market and industry), 24 February 2022, 24 February 2022

Main results

Industrial mobility ecosystem

Ministers held a debate on the future of the industrial mobility ecosystem in the context of the green transition.

Decarbonising our means of transport is crucial to tackling climate change. In this context, we need to anticipate the impact that the Green Deal and Fit for 55 will have on transport, for example in the automotive, rail and air sectors. Because these texts will require extraordinarily far-reaching transformations of our production chains and our skills needs. This will only be achieved through substantial support and investment. We would like to have EU countries’ initial views of the indicators and the tools we should use to complete these transformations.

Agnès Pannier-Runacher, French minister with responsibility for industry

The member states welcomed the fact that the Competitiveness Council was to play an important role in guiding the various policies for speeding up the EU’s green transition, in view of the associated industrial challenges.

Ministers addressed the specific challenges that implementing the ‘fit for 55’ package would pose for the mobility industries. They discussed their estimation of the scale and cost of the green mobility transition, but also its long-term benefits and the actions required to support the transition.

• Presidency note

Critical raw materials

The presidency returned to the discussions that had taken place at the informal meeting of ministers for industry on 31 January and 1 February 2022 in Lens, France. Ministers had had the opportunity to exchange views on how to secure internal and external supplies of critical raw materials to European industry in order to strengthen the Union’s strategic autonomy.

The presidency stressed that it was important to make progress in three areas: (i) securing supplies outside the European Union, (ii) developing recycling and innovation to improve consumption of existing raw materials in Europe, and (iii) creating a framework for extraction in Europe.

Foreign subsidies

Ministers held a policy debate on the regulation on foreign subsidies distorting the internal market.

Fair competition which is not distorted by foreign subsidies is a prerequisite for the competitiveness of our companies and the sustainability of European industrial projects that help strengthen our strategic autonomy. This proposal is therefore a key element in the deployment of our European industrial strategy. Agnès Pannier-Runacher, French minister with responsibility for industry

The aim of this proposal is to address the distortions created in the single market by subsidies granted by third-country public authorities to companies carrying out an economic activity in the European Union.

Ministers agreed on the need to monitor subsidies paid by third countries in the same way as member states’ subsidies. A number of ministers supported the European Commission as the only body empowered to enforce the regulation, while some stressed the need for the member states to have a more active role in the implementation of the regulation.

• Watch the recording of the public debate here
• Presidency note

Semiconductor package (Chips Act)

The Commission briefly presented to ministers the semiconductor package, or ‘Chips Act’, which had been published on 8 February 2022.

Since the semiconductor industry is of paramount importance for the European economy, this topic will again be on the agenda of a forthcoming Competitiveness Council meeting.

• Watch the recording of the public debate

Corporate sustainability reporting (CSRD)

The Council adopted unanimously a general approach on the proposed Corporate Sustainability Reporting Directive (CSRD).

The adoption, under the impetus of the French Presidency, of a common position by the Member States on this text represents a major step forward for the green transition of our businesses. This is a further step towards more responsible capitalism. Europe will be a future reference point for non-financial standards.

Olivia Grégoire, French Minister of State for the Social, Solidarity and Responsible Economy.

The proposal aims to address shortcomings in the existing rules on non-financial reporting, which were of insufficient quality and insufficiently comparable to enable them to be properly taken into account by investors.

Such shortcomings hinder the transition to a sustainable economy. Furthermore, the abundant nature of today’s non-harmonised data requests creates a significant burden for businesses that needs to be streamlined.

• Council general approach
• Council adopts position on Corporate Sustainability Reporting Directive (CSRD) (press release, 24 February 2022)
• Watch the recording of the public debate

Other topics on the agenda

Common charger

The presidency provided information on the state of play of the examination of the Commission’s proposal for a common charger for radio equipment. It informed ministers about the negotiating mandate adopted by the Council’s Permanent Representatives Committee on 26 January.

The presidency explained that, given the direct impact on the everyday comfort of European consumers and on the reduction of electronic waste, it will make every effort to advance the discussions as far as possible.

• Council negotiating mandate
• Council adopts position on a common charger for electronic devices (press release, 26 January 2022)
• Watch the recording of the public debate

Sustainable corporate governance and due diligence

The European Commission presented to ministers the proposal on sustainable corporate governance and due diligence.

This proposal was adopted on 23 February 2022. It aims to help companies better manage sustainability issues in their operations and value chains, with particular reference to social and human rights, climate change and the environment.

• Information from the Commission
• Watch the recording of the public debate

The European Commission provided information on the EU standardisation strategy. This strategy is a key tool for the internal market, the digital and environmental transition and, more generally, for European competitiveness on a global scale.

• European Commission communication – standardisation strategy

The European Commission also presented its annual report on the single market. This report describes the state of the single market, focusing in particular on economic recovery after the COVID-19 crisis and identifying investment needs that would make the single market more resilient. The European Commission also presented the report on dependencies.

• Annual single market report 2022 (European Commission)
• Report on dependencies (European Commission)

The Council also adopted without discussion the items included in the lists of legislative and non-legislative ‘A’ items.