On Wednesday, EU economy ministers gathered in Brussels to discuss ways to enhance European industrial competitiveness. Simultaneously, they agreed to maintain the “Clean Industrial Deal”, an initiative aimed at supporting high-CO2 emitting sectors during their transition to more sustainable production.
Luxembourg was represented at the summit by Economy Minister Lex Delles.
Given the current challenging geopolitical landscape, European businesses not only need support but also reinforcement, particularly with the introduction of US tariffs on various European products. According to Delles, the solution should not be retaliatory tariffs. Instead, he emphasised the importance of strengthening the European internal market, believing there to be significant potential for improvement in this area.
In this context, Delles highlighted the challenges of market restrictions within the EU, citing price differences at the Luxembourg-Germany border as an example. He noted that beauty products are often available at significantly lower prices in Germany than in Luxembourg, even at wholesale rates. This, he argued, underscores regulatory barriers that prevent goods sold in one country from being freely marketed in another – an issue he believes should be addressed to strengthen the EU’s internal market.
Although Luxembourg might not be a major industrial player, the Grand Duchy still maintains an industry that requires protection within the Clean Industrial Deal framework, according to Delles. “I’m particularly concerned about the steel industry”, he added. “With the Carbon Border Adjustment Mechanism in place, we must carefully assess whether we can continue guaranteeing jobs in green steel here in Luxembourg.”
Jobs among auto suppliers are also at risk, as these suppliers typically follow car manufacturers in case of relocation. Therefore, Delles asserts, it is crucial to adapt the Clean Industrial Deal to ensure that industries – which may not immediately decarbonise at 100% rate – still receive the necessary support while transitioning towards greener practices.
