The Socialists and Democrats in the European Parliament warmly welcome the proposals to overhaul the EU's state aid rules, presented today by the European Commission. This critical step forward delivers on a commitment made in July 2024 to adapt our economic tools to an evolving global landscape and the urgent need for a green transition. It replaces the temporary frameworks established in the aftermath of the Covid-19 pandemic and the Russian invasion of Ukraine.
The S&D Group commends the initiative of Teresa Ribera, executive vice-president of the Commission, to align the revised rules with the EU’s ambition to be climate neutral in 2050.
We firmly believe that effective EU competitiveness can only be rooted in sustainable economic development and a leading role in clean technologies. This overhaul is a crucial step toward ensuring that our industrial policy supports a just, green transition across the Union.
The S&Ds will scrutinise the proposals and work with all stakeholders to ensure that the new state aid rules genuinely serve the interests of all Europeans – promoting social justice, environmental protection, and a resilient, prosperous economy.
Gaby Bischoff, S&D vice-president for sustainable economy and social Europe, said:
"The Commission's proposals aim to strike a vital balance between achieving our overarching EU objectives, providing necessary speed and security for businesses, and upholding our commitment to social and regional equality. This framework provides the legal predictability our industries need to invest in a sustainable future.
"State aid remains a powerful tool to shape our industrial policy, but it needs to be used in a targeted way to alleviate the risk of distortions and fragmentation of the internal market. Therefore, it is of utmost importance to carefully assess the conditions under which state aid can be granted, and align these conditions with our European goals.
"However, state aid alone is insufficient to achieve our European priorities. We remain steadfast in our call to establish a robust new European investment instrument. This will be key to ensuring that all EU countries, regardless of their financial resources, can participate fully in the green transition."
Mohammed Chahim, S&D vice-president for the Green Deal for industry, energy and climate and financing the Just Transition, added:
"We commend the European Commission for advancing an ambitious Clean Industrial Deal that reaffirms that competitiveness goes hand in hand with our climate objectives, placing clean technologies at its core.
"While Europe has consistently led in pioneering breakthrough innovations, it continues to face challenges in scaling these solutions into industrial leaders of tomorrow. It is clear that we need to catch up on all fronts – from accelerating the rollout of renewable energy infrastructure to further fostering leading technologies.
"We welcome incentives that increase demand for clean products. Market creation for sustainable products is one of the key priorities for the S&Ds."
