Industrial policy: Orgalim position on Strategic Value Chains and IPCEIs

Orgalim has followed with great interest the work developed by the Strategic Forum on Important Projects of Common European Interest (IPCEIs) launched by the European Commission in Spring 2018. 

As the Strategic Forum is moving towards the finalisation of its Report, with a clear link being developed to the Report of the High-Level Industry Roundtable (HLIR) where Orgalim is represented by its President, we would like to provide our comments to the horizontal chapter. We have also provided separately our input to some of the chapters devoted to the six Key Strategic Value Chains selected by the Forum. 

As a champion for many years of an EU Industrial Policy that builds on Europe’s strengths to unlock future growth and provides solutions to societal challenges, Orgalim supports the initiative and the debate on “Strategic Value Chains” (SVCs). Many sectors of our industries are at the core of strategic value chains which will play an important role in addressing the three Strategic Imperatives defined in our “Industry Vision for a renewed Europe”. 

One instrument at the EU’s disposal to support SVCs, where the Member States are instrumental, are the Important Projects of Common European Interest (IPCEIs), for the execution of which the granting of state aid might under certain conditions be considered as compatible with the Internal Market as stated in Art 107 TFUE, particularly 3(b). As recalled in the Commission Communication 2014/C 188/02 of 20 June 2014, an IPCEI is a project that, in the absence of less distorting instruments to address a market failure, has to comply with a number of cumulative and specific criteria to be eligible to receive state aid. This includes notably contributing to EU objectives, involving several Member States, having positive spill-over effects beyond the companies or the sector concerned, and having a large research and innovation dimension or be of great importance for the environmental, energy or transport of the EU or contribute significantly to the Internal Market. Any state aid granted to an IPCEI must be notified to the Commission. 

Beyond the requirements set out under the EU treaties, we believe that a number of strategic considerations should guide the EU’s future approach to IPCEIs. To read our recommendations in full, please download the position paper above.