The automotive industry is the heart of the whole industrial sector in the European Union, but Europe has suffered a serious heart attack. The Chinese automotive industry is nipping at Europe’s heels and is on the verge of taking over the entire sector, write Riho Terras, Jüri Ratas and Manfred Weber.
It is no exaggeration to say that the automotive industry is the heart of the entire industrial sector in the European Union. Let’s look at the numbers: 13 million jobs, 255 factories, 15 million vehicles produced annually and 7 percent of the EU’s total GDP. These are impressive figures.
Unfortunately, the heart of our industry has been faltering for some time and is now on the verge of giving out. Behind this are both economic factors and misguided political decisions. The consequences could be disastrous and will inevitably affect Estonia as well.
Germany, France, Italy and Belgium are announcing factory closures on a daily basis. This would mean thousands of workers losing their jobs. Estonia may not fully grasp the gravity of the situation, but the crisis is critical – not just for the jobs in other countries, but for the independence of our entire continent. The Chinese automotive industry is already nipping at Europe’s heels and is poised to take over the entire sector. Figuratively speaking, Europe’s flagship industries are dangerously listing.
We are convinced that the future of the automotive industry and mobility must be anchored in Europe, not in China, a country allied with Russia and pursuing policies hostile to us. Initial steps have been taken, such as significantly raising tariffs on Chinese electric vehicle imports, but that alone is not enough.
Main challenges and the rise of China
The next critical step is to give our companies some breathing room. The energy and resources that entrepreneurs could devote to innovation and development are currently consumed by compliance with countless regulations and the pursuit of subsidies. This model is not sustainable.
Rules must be streamlined and aligned logically. At present, we have created an absurd situation where we have tied the hands of our economic engines behind their backs instead of allowing them to operate freely and generate wealth. One of the key tasks for the newly appointed European Commission is to establish a single market for both goods and capital.
Regarding electric vehicles, we agree that the transition to electric transport outlined in the “Fit for 55” plan is a step in the right direction. However, this transition cannot be blind or fundamentalist. The current target to end the sale of internal combustion engine cars by 2035 is completely unrealistic. In this regard, the blame falls squarely on the socialists, greens and liberals.
The same can be said about the Estonian government’s poorly thought-out decisions. Introducing a car tax under the pretext of the green transition is out of touch with reality and incomprehensible. The critical situation described above demands flexibility in achieving climate goals.
We believe that lifting the ban on internal combustion engines must not be a taboo topic. On the contrary, history shows that balance and neutrality in weighing technology and environmental considerations have brought success to Europe. Estonia, too, should avoid blindly following the so-called green religion and pressuring our entrepreneurs and consumers with taxes and demands, especially when the proceeds are funneled into unclear purposes.
Europe should not penalize its car manufacturers in the coming year. If penalties are unavoidable, any fines collected from manufacturers must be reinvested to support the automotive industry itself.
What is the goal of the Green Deal in terms of the labor market? It is to create new jobs in Europe – not in China. Yet, as things stand, in the first half of 2024, Chinese brands accounted for over 10 percent of new electric vehicles sold in the EU. This marks a significant increase, considering that five years ago, in 2019, the figure was nearly zero.
China also controls the raw materials critical for battery production, while we lag behind. Europe did not reduce its dependence on Russian gas only to become dependent on Chinese batteries instead.
Wherein lies the solution?
To move beyond criticism and negativity, we propose tangible solutions. First, a new resource strategy must be developed. Alongside this, the development of electric vehicle infrastructure needs to accelerate. This means building more charging points, including home charging stations and heavy-duty vehicle charging stations.
We are living in an entirely new reality, facing new challenges. While the previous European Commission considered the green transition and climate goals its primary mission, we must now focus on boosting competitiveness while also addressing security concerns. This sentiment has been echoed by European Commission President Ursula von der Leyen.
On a more positive note, we are pleased to announce that our parliamentary group in the European Parliament has already initiated meetings with leaders of the European automotive industry. Additionally, von der Leyen has stated her intention to convene a strategic dialogue on the future of the automotive industry. The problem is serious, and we must restore the heart of European industry, as the vitality of our shared organism depends on it.
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Publish date : 2024-12-23 03:53:00
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The post Terras, Ratas, Weber: EU automotive industry in deep crisis | Opinion first appeared on Love Europe.
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Author : love-europe
Publish date : 2024-12-23 22:00:17
Copyright for syndicated content belongs to the linked Source.