Reference News, July 14 report: The French website "Le Point" published an article titled "How Europe Hopes to Save the Chemical Industry" on July 9, authored by Emmanuel Beretta. Excerpts follow:

"Chemistry is the mother of all industries," Stéphane Séjourné reminded the European Parliament on July 8 when presenting a package of measures on chemicals. These words from the European Commission's Vice President for Prosperity and Industrial Strategy are shocking, but they are a bare reality.

The European chemical industry is experiencing its most severe crisis in decades. This is the third industry rescue plan proposed by the European Commission, following the automotive and steel industries. Like previous plans, this one was also developed based on "strategic dialogue" with industry participants.

As the fourth largest manufacturing sector in the EU, the chemical industry directly and indirectly employs 3.6 million people and generates turnover of 539 billion euros. However, these figures mask a retreat; "in the past 20 years, global turnover has fallen by nearly 50%." Since 2003, 18 factories have closed, and none have opened. Struggling under fierce competition from Asia, the industry is faltering.

A report by former Italian Prime Minister Draghi on European competitiveness pointed out two reasons for the decline of the chemical industry: unaffordable energy prices and insufficient investment. In 2022, European chemical production met only 60% of internal demand, compared to 75% in 2006. The decline of Europe relative to the US and China is evident.

However, chemistry is at the core: military, food industry, pharmaceuticals, and the Internet of Things cannot do without it. It shapes the modern world every day. Without chemistry, it would be impossible to manufacture cars, medicines, or smartphones.

The chemical industry feeds all other industries, and if it shrinks, we will become dependent on external powers, especially China.

Séjourné emphasized: "Supporting the chemical industry means supporting 90% of the supply chain, which is the basis of our European competitiveness."

What needs to be done? The European Commission's chemical plan implements the recommendations of Draghi's report, focusing on four areas: supporting the European production system and innovation, reducing energy prices and supporting industrial decarbonization, supporting demand, and simplifying regulation.

The top priority is to simplify the regulatory jungle. "It is expected to save 400 million euros per year for the industry, equivalent to nearly 1 million euros per day," Séjourné promised.

To overcome dependence, the European Commission plans to establish a "Critical Chemicals Alliance." Séjourné continued: "We will support the construction of critical chemical industrial bases, which often take root in regions where we already have industrial infrastructure, skills, expertise, and facilities."

But the real challenge is the ecological transition. Séjourné announced: "We will open innovation centers to promote the rise of new companies in advanced chemical fields. These excellence centers will support companies, especially small and medium-sized enterprises, in developing safer, more sustainable alternatives."

This collaborative model aims to "unite local forces, industrial enterprises, start-ups, research institutions, and local governments to modernize the industrial base," and "attract new elements of innovation, employment, and financing, including European and regional funds."

On the international front, Séjourné plans to raise barriers against unfair competition from foreign producers. The battle has already begun. Since 2024, the European Commission has launched over 18 investigations into imported chemical products using trade defense tools. While conducting a trade offensive, it also proposed "European content standards and sustainability standards in public and private procurement."

Contrary to popular belief, chemistry is not a sunset industry, but a future industry. Electric vehicle batteries, wind turbine materials, next-generation drugs... without chemistry, it is impossible to succeed in the ecological transition.

Europe no longer has the right to make mistakes. But another competitor is threatening this plan: Donald Trump, who has not abandoned the idea of imposing tariffs on European chemical products, especially medicines. Séjourné concluded: "This will have an impact, but it will not change our plan: we will focus on building ourselves!"

There is also the issue of funding. This will become a difficult topic in the next long-term budget negotiations of the EU. (Translated by Lin Xiaoxuan)

Original: https://www.toutiao.com/article/7526849589555561001/

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