Thread by @AndreasEisl

New publication💡
In this @DelorsInstitute paper I discuss how Important Projects of Common European Interest (#IPCEIs) can be transformed from largely national ad hoc exercises into a key instrument of EU industrial policy fit for the long run. 👇
institutdelors.eu/wp-content/upl…
🧵1/14

Since 2018, IPCEIs have become an increasingly important tool for EU member states (MS) to take on a more active role in key economic sectors inside the confines of the Single Market's comprehensive competition policy framework. 2/14

Differences in the financial, administrative and technical capacities of MS, however, create significant tensions between industrial and competition policy. While the #RRF provided EU financing for several IPCEIs, the upcoming wave of projects lacks – so far – EU support. 3/14

This table shows that the RRF was used by a considerable number of MS to (co-)finance their IPCEI participation for the already notified hydrogen IPCEIs and for the pre-notified microelectronics 2 and cloud systems IPCEIs. 4/14

To strengthen IPCEIs as a central tool of EU industrial policy, my policy paper makes several recommendations for how to (1) secure more predictable IPCEI financing at the EU and national level and (2) develop a more harmonised and effective IPCEI governance. 5/14

Regarding financing 💵, the paper proposes a debt-financed European investment fund as the most sensible solution to jointly handle the large investment needs for IPCEIs, the green and digital transition, and other strategic economic sectors. 6/14

Alternatively, a smaller Sovereignty Fund with a more focused remit could also be established, which would not necessarily be dependent on debt financing, but would be a second-best option. 7/14

In addition, complementary measures could facilitate IPCEI spending at the national level. This includes (a) a prioritisation of IPCEIs in the fiscal-structural plans of the planned Stability and Growth Pact reform, giving MS more time for fiscal adjustment. 8/14

(b) Also the creation of dedicated national funds or specific budgetary lines in national budgets reserved for IPCEI participations and related measures could help giving the funding of IPCEIs a more permanent foundation. 9/14

Beyond IPCEI financing, also changes in IPCEI governance could significantly strengthen the instrument and reduce differences in MS capacities. My policy paper makes three recommendations in this regard. 10/14

First, a European exchange forum for participating and interested MS should be created, allowing to reduce unnecessary bureaucratic burdens and improve alignment across countries through the sharing of experiences and best practice examples. 11/14

Second, a European support structure for enterprise applications could help to reduce the differences in the technical and administrative capacities of MS. 12/14

Third, the Commission needs to rapidly expand its administrative capacities to speed up IPCEI notification processes, which have recently significantly slowed down IPCEI implementation. 13/14

For the detailed analysis and recommendations, check out the full policy paper here: 14/14
institutdelors.eu/wp-content/upl…