Orgalim comments on the State of the Union address

14 September 2022

European Commission President von der...

European Commission President von der Leyen delivered today her third "State of the European Union" speech (SOTEU) which takes stock of the Commission’s work over the past year and sets out the agenda for the year ahead.

Orgalim welcomes the renewed emphasis on industry and manufacturing, and on smaller companies in particular, as the backbone of Europe’s economy. As the energy crisis continues to cause serious damage to Europe’s technology industries, coordinated EU action on providing emergency relief is desperately needed. And the case for a fundamental redesign of Europe’s electricity market is overwhelming.

We also welcome that considerable attention was given to renewing momentum on Free Trade Agreements, which are critical for our export-oriented companies. As we continue to strengthen the resilience of our supply chains, we will benefit from opening up new trade partnerships. Alongside the FTAs mentioned by President von der Leyen, implementation of EU-Mercosur Free Trade Agreement must remain a top priority.

In the context of the industrial policy measures announced in the SOTEU today, we note the risks inherent in far-reaching interventions in the market. These can undermine the competitiveness of our industries in the longer term and must therefore be limited to clearly defined and exceptional circumstances. We also caution about adding further onerous or disproportionate regulatory burdens at a time when many of our companies, who are critical enablers of the EU’s green and digital objectives, will be struggling for survival.

As a member of the European Commission’s Industrial Forum, and co-curators of its Task Force 5, Orgalim looks forward to working with the EU institutions, Member States, civil society and other industry partners on the priorities set out today.

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