On Thursday, German Chancellor Olaf Scholz said he would strive to enhance European competitiveness at an E.U. summit in Brussels next week by making state support more flexible and completing capital markets and banking unions.
Scholz told the German Parliament that the E.U. must cooperate on various subjects, including the Inflation Reduction Act, a massive U.S. subsidy program for sustainable technologies.
Cooperation has deteriorated as the EU competes with the U.S. and China economically and defends Ukraine from Russia.
Scholz has called for a unified banking market to eliminate public bailouts of institutions like Credit Suisse (CSGN.S).
Scholz said competitiveness drives economic growth. Moreover, competitiveness determines Europe’s geopolitical future.
The VDA cautioned Scholz that Germany and Europe are falling behind in the global raw materials and energy race.
The EU’s Critical Raw Materials Act aspires to equal availability of U.S. and Chinese raw materials. In addition, Scholz will address raw material security in Japan this week.
The Brussels meeting may modify E.U. fiscal rules limiting government borrowing to defend the euro. Scholz called Berlin’s objections “difficult.”
Scholz said E.U. member states would provide armament and ammunition to Kyiv without revealing details.
Germany would provide its military procurement programs to other EU countries to accelerate weapons production.