Jussi Mäkinen

Ursula von der Leyen's political guidelines: Speech in the European Parliament on 18 July 2024

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Jussi Mäkinen

The first plenary session of the tenth European Parliament culminated in Ursula von der Leyen presenting her policy priorities to MEPs, in a bid to be re-elected as President of the European Commission. If she is approved in her role, the so-called “Political Guidelines” she presented to the Parliament will underpin the work during her second term in office.

The first observations about the political guidelines for the Finnish technology industry are:

What was good? 

  1. A strong pledge to strengthen European competitiveness, including an ambitious initiative toreduce the administrative burden for companies and improve how EU laws are drafted.
  2.  A firm commitment to continue moving the green transition forward and reduce greenhouse gas emissions by 90 per cent come 2040. Von der Leyen also promised to present a “Green Industrial Deal” action plan during her first hundred days back in the Berlaymont. 
  3.  A promise to improve the availability of private investment through the creation of a genuine Capital Markets Union. Von der Leyen further promised a new “European Competitiveness Fund” dedicated to expanding Europe’s manufacturing capacity for strategic technologies. 

+ 1 Development of a Single EU Defence Market

These proposals are good news for the Finnish technology industry. Finnish companies are leading on the green transition and in many areas of critical technology. Our defense and aviation sector has much to offer when it comes to defence industry proper, but also in the field of dual-use products – be it communication, cybersecurity, and artificial intelligence technologies. This will strengthen our position as the internal market deepens.

What raised concerns or requires special attention?

Certain suggestions by von der Leyen raise questions over potential adverse effects on the Finnish technology industry, making it imperative for us to monitor the actions of a second von der Leyen Commission carefully in the future:

  1. The European Competitiveness Fund could prove to be a boon for European strategic technologies – however, in her speech, von der Leyen did not tie it to technological excellence, suggesting that it could include elements of regional development.
  2. The Green Industrial Deal offers many opportunities at first sight. However, with a view to energy, von der Leyen prioritised almost exclusively action to lower the price of energy. This must happen on market terms and be driven by investments, not national subsidies.
  3. Von der Leyen plans to go beyond the AI and Data Acts to further regulate the use of data and artificial intelligence in workplaces. While her message was measured and focused principally on the negative impact of new technologies on mental health, a new EU law could cover a very broad range of applications and thus have a significant impact on the competitiveness of European companies.
  4. European societies are ageing at a rapid pace and that makes attracting skilled workers pivotal for European industries. This was not reflected in von der Leyen’s speech, though immigration was only approached from the angle of security and control. The skills shortage was not discussed in the speech at all. 

+ 1  A  review of competition rules to enable European companies to scale. This was von der Leyen's remedy for the wound caused by the collapse of the Siemens-Alstom merger. The message was moderately delivered, but when it comes to turning rhetoric into action, the details will have to be very carefully scrutinised.

Parlamentti

What should the Finnish government especially focus on?

The EU policy priorities of the Finnish government should be reviewed in light of von der Leyen’s new Political Guidelines. That way, it can effectively influence the future Commission's Work Programme which is likely to be adopted in early 2025. The following items require special attention:

  1. European Competitiveness Fund. It is absolutely pivotal that Finland is able to ensure that any ECF money is disbursed on strategic technologies and that funds are distributed only on the basis of excellence. Here, the government needs to establish a clear position very quickly.
  2. Single Market for Defence. It is notable that von der Leyen delivered this section of the speech in French. Together with its fellow northern European NATO members, Finland must use all its influence to guarantee that the rules underpinning the internal market for defence ensure the full and equal participation of Member States, regardless of their sizes and in recognition of their different capabilities. 

Further information: 

Johtaja Jussi Mäkinen (EU-regulaatio)

puh. 040 900 3066, jussi.makinen@teknologiateollisuus.fi,

X: @Jussi_M