May 26, 2025

The following is a press release:

The Clean Industrial Deal is a vital and long-overdue growth strategy to boost EU competitiveness. Placing regions and cities at the centre of industrial policy is essential to ensuring a successful and territorially balanced green transition across the EU. This is the main message of a draft opinion adopted during the meeting of the Commission for Economic Policy (ECON) on 23 May. ECON members also held an initial debate on a draft opinion on the European Defence Readiness Package 2030 and discussed the impact of current international trade disruptions on regions and cities.

Clean Industrial Deal

During the meeting, ECON members adopted a draft opinion on the Clean Industrial Deal, calling for a place-based industrial policy that recognises the diverse industrial strengths of Europe’s territories. Local and regional leaders underlined that local governments are key drivers in fostering competitive industries. They highlighted several critical tools to support industries in the clean transition, including the full implemention of EU measures for simplification and public procurement, the mobilisation of both public and private resources, targeted investment and state-aid frameworks, innovative and smart specialisation strategies, and stronger partnerships between public actors, enterprises, academia and skills providers. Members also emphasised the need to reduce energy costs by increasing the production of clean energy.

Rapporteur William Elofsson (SE/EPP), Second Deputy Mayor of Gävle, said: "Today, the ECON Commission adopts the Clean Industrial Deal report, which positions local and regional authorities as key enablers of Europe’s clean, competitive industrial transformation. The opinion calls for place-based strategies, simplified permitting, investment in skills, and fair energy policies, while urging coherent funding, innovation support, and technology-neutral approaches to drive decarbonisation and industrial development across the EU."

Defence Package

ECON members held a first exchange of views on a draft opinion on ‘European Defence Readiness 2030’. They stressed the importance of a stronger European preference for defence products and technologies developed within the European Union, and the need for EU instruments — such as the Security Action for Europe (SAFE) — to effectively reduce fragmentation in the defence market, where common procurements should involve at least two EU Member States. Removing national intra-EU administrative barriers will also be key to building a strong European defence industry, they argued. ECON members also emphasised that the use of Cohesion Policy funds for defence must go hand in hand with regional development goals.

Rapporteur Ricardo Rio (PT/EPP), Mayor of Braga, said: "As we shape the new European defence investment strategy, I strongly emphasise the critical role of local and regional governments in building resilient, sustainable, and inclusive defense mechanisms that not only protect our communities but also foster cohesion, competitiveness and stability across the regions of Europe.”

EU Trade Policy

During a debate on the impact of changing trade perspectives on regions and cities, ECON members stressed the urgent need for a place-based approach to trade resilience, warning that global tensions, increased tariffs and supply chain disruptions are creating uneven economic impacts across the Union.

A piloting use of AI tools

Members of the ECON also appointed the Chair of the commission and President of the Piedmont Region, Alberto Cirio (IT/EPP) as rapporteur on the Artificial intelligence (AI) Continent Action Plan, with which the EU is determined to become a global leader in AI. He said: "The use of AI is now part of our daily lives and its potential for public administration is enormous. In Piedmont we’re working hard, for example, to use AI systems to tackle the challenge of monitoring and reducing road transport pollution, through an innovative way of operating traffic lights. EU regions and cities must have their say on shaping the investment in AI computing infrastructures, strengthening AI skills and talents. The forthcoming opinion will be important input for the public sector part of the Apply AI Strategy, which the European Commission will present later this year."

A first opinion on challenges and opportunities of AI in the public sector, drafted by Mr Cirio, was adopted by the CoR in October 2024. For the first time ever during a CoR institutional event, AI technology was used to break down the topics discussed at the ECON meeting into clear and accessible information for citizens and stakeholders. The link to the AI tool for this meeting will be available here as of 4 June.

Background

Rewatch the meeting here.

On 25 February, the European Commission presented the Clean Industrial Deal, which outlines concrete actions to turn decarbonisation into a driver of growth for European industries. This includes lowering energy prices, creating quality jobs and the right conditions for companies to thrive.

The Commission presented on 19 March the White Paper for European Defence – Readiness 2030 and as part of the ReArm Europe Plan/Readiness 2030, an ambitious defence package providing financial levers to EU Member States to drive an investment surge in defence capabilities. While the ReArm Europe Plan/Readiness 2030 aims to strengthen pan-European defence capabilities with financial means, the White Paper frames a new approach to defence and identifies investment needs.

Contact

Theresa Sostmann

Tel: +32475999415

Theresa.Sostmann@cor.europa.eu

Matteo Miglietta

+32470 89 53 82

Matteo.Miglietta@cor.europa.eu