EUROPEAN COMMISSION
DAILY NEWS
Brussels, 26 February 2025
A Clean Industrial Deal for competitiveness and decarbonisation in the EU
Today, the Commission presents the Clean Industrial Deal, a bold business plan to support the competitiveness and resilience of our industry. The Deal will accelerate decarbonisation, while securing the future of manufacturing in Europe.
Faced with high energy costs and fierce and often unfair global competition, our industries need urgent support. This Deal positions decarbonisation as a powerful driver of growth for European industries. This framework can drive competitiveness as it gives certainty and predictability to companies and investors that Europe remains committed to become a decarbonised economy by 2050.
President Ursula von der Leyen said: “Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.”
The Commission is also taking actions to make our regulatory environment more efficient while reducing bureaucratic hurdles for businesses. Today's measures are the results of the active engagement with industry leaders, social partners and civil society in the context of the Antwerp Declaration for a European Industrial Deal and the European Commission's Clean Transition Dialogues.
A business plan to decarbonise, reindustrialise and innovate
The Deal focuses mainly on two closely linked sectors: energy-intensive industries and clean tech.
i) Energy-intensive industries as they require urgent support to decarbonise and electrify. The sector faces high energy costs, unfair global competition and complex regulations, harming its competitiveness. ii) Clean Tech is at the heart of future competitiveness and growth as well as crucial for industrial transformation. Circularity is also a central element of the Deal, as we need to maximise EU's limited resources and reduce overdependencies on third country suppliers for raw materials.
The Deal presents measures strengthening the entire value chain. It serves as a framework to tailor action in specific sectors. The Commission will present an Action Plan for the automotive industry in March and an Action Plan on steel and metals in Spring. Other tailored actions are planned for the chemical and clean tech industry.
Today's Communication identifies business drivers for industry to succeed in the EU:
Lower energy costs
Affordable energy is the foundation of competitiveness. The Commission therefore adopted today an Action Plan on Affordable Energy to lower energy bills for industries, businesses and households. The Act will speed up the roll-out of clean energy, accelerate electrification, complete our internal energy market with physical interconnections, and use energy more efficiently and cut dependence on imported fossil fuels.
Boosting demand for clean products
The Industrial Decarbonisation Accelerator Act will increase demand for EU-made clean products, by introducing sustainability, resilience, and made in Europe criteria in public and private procurements. With the review of the Public Procurement Framework in 2026, the Commission will introduce sustainability, resilience and European preference criteria in public procurement for strategic sectors.
The Industrial Decarbonisation Accelerator Act will also launch a voluntary carbon intensity label for industrial products, starting with steel in 2025, followed by cement. The Commission will simplify and harmonise carbon accounting methodologies. These labels will inform consumers and allow manufacturers to reap a premium on their decarbonisation efforts.
Financing the Clean Transition
In the short-term, the Clean Industrial Deal will mobilise over €100 billion to support EU-made clean manufacturing. This amount includes an additional €1 billion guarantees under the current Multiannual Financial Framework.
The Commission will:
Adopt a new Clean Industrial Deal State Aid Framework. It will allow for simplified and quicker approval of State aid measures for the roll-out of renewable energy, deploy industrial decarbonisation and ensure sufficient manufacturing capacity of clean tech.
Strengthen the Innovation Fund and propose an Industrial Decarbonisation Bank, aiming for €100 billion in funding, based on available funds in the Innovation Fund, additional revenues resulting from parts of the ETS as well as the revision of InvestEU.
Amend the InvestEU Regulation to increase InvestEU's risk bearing capacity. This will mobilise up to €50 billion in additional private and public investment, including in clean tech, clean mobility and waste reduction.
The European Investment Bank (EIB) Group will also launch a series of concrete new financing instruments to support the Clean Industrial Deal. The EIB will launch: i) a ‘Grids manufacturing package' to provide counter-guarantees and other de-risking support to manufacturers of grid components; ii) a joint European Commission-EIB pilot programme of counter-guarantees for Power Purchase Agreements (PPAs) undertaken by SMEs and energy intensive industries; and iii) launch a CleanTech guarantee Facility under the Tech EU programme powered by InvestEU.
Circularity and access to materials
Critical raw materials are key for our industry. The EU therefore has to secure access to such materials and reduce exposure to unreliable suppliers. At the same time, placing circularity at the core of our decarbonisation strategy helps maximising the EU's limited resources. The Commission will therefore:
Set up a mechanism enabling European companies to come together and aggregate their demand for critical raw materials.
Create an EU Critical Raw Material Centre to jointly purchase raw materials on behalf of interested companies. Joint purchases create economies of scale and offer more leverage to negotiate better prices and conditions.
Adopt a Circular Economy Act in 2026 to accelerate the circular transition and ensure that scarce materials are used and reused efficiently, reduce our global dependencies and create high quality jobs. The aim is to have 24% of materials circular by 2030.
Acting on a global scale
The EU needs reliable global partners more than ever. In addition to ongoing and new trade agreements, the Commission will soon launch the first Clean Trade and Investment Partnerships, which will diversify supply chains and forge mutually beneficial deals. At the same time, the Commission will act even more decisively to protect our industries from unfair global competition and overcapacities through a range of Trade Defence and other instruments. The Commission will also simplify and strengthen the Carbon Border Adjustment Mechanism (CBAM).
Ensuring access to a skilled workforce
The transformation of our industry requires skilled people and top talents. The Commission will establish a Union of Skills that invests in workers, develops skills and creates quality jobs. With Up to €90 million from Erasmus+, the Deal will help reinforce sectoral skills for strategic industries linked to the Clean Industrial Deal. The Deal also supports quality jobs, promote social conditionalities and provide further support to workers in transitions.
Background
In her political guidelines (2024-2029), President von der Leyen announced to deliver the Clean Industrial Deal within the first 100 days of the Commission's mandate as a priority to ensure competitiveness and prosperity in the EU.
The Clean Industrial Deal builds further on the active engagement from industry leaders, social partners and civil society in the context of the Antwerp Declaration for a European Industrial Deal and the Clean Transition Dialogues.
For More Information
The Clean Industrial Deal: A joint roadmap for decarbonisation and competitiveness
Questions & Answers on the Clean Industrial Deal
Factsheet on the Clean Industrial Deal
Press release on the Action Plan on Affordable Energy
Competitiveness - European Commission
Audiovisual Service
Quote(s)
Europe is not only a continent of industrial innovation, but also a continent of industrial production. However, the demand for clean products has slowed down, and some investments have moved to other regions. We know that too many obstacles still stand in the way of our European companies from high energy prices to excessive regulatory burden. The Clean Industrial Deal is to cut the ties that still hold our companies back and make a clear business case for Europe.
President Ursula von der Leyen
Today, Europe is making a bold business case for decarbonisation as a driver of prosperity, growth, and resilience. By committing to delivering on the Green Deal climate objectives, we are setting the stage for a sustainable future. Our plan provides the stability and confidence investors need—unlocking capital, expanding clean tech markets, making energy more accessible, and ensuring a fair, competitive landscape where businesses can thrive. But it’s also about people. This strategy is designed to create jobs, develop skills, and open opportunities for all Europeans.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition
Today, Europe accelerates on its twin decarbonisation and reindustrialisation. This pact aims to position Europe as a world leader in clean industries - from boosting our production « made-in-Europe », to beefing up regulatory and financial support to our most strategic industrial supply chains. It also secures our unique European model of setting decarbonisation not only as an environmental goal, but also as our economic growth strategy.
Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy
Europe needs to be cleaner, more competitive, and self-sufficient. The Clean Industrial Deal is our business plan: a decarbonisation strategy that re-industrialises Europe, driving competitiveness and boosting strategic independence. We’ve got a plan, and we’re putting it into action, starting today, to ensure a prosperous European future.
Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth
Commission brings relief to European consumers and businesses with Action Plan to save €260 billion annually by 2040
The EU is at a crucial turning point for its competitiveness, decarbonisation and security, with a clear need to act. Structurally high energy costs are hurting our citizens and businesses. The challenges are clear, and so is the role of the European Union to address them. Today, the Commission is putting forward an Action Plan with short-term measures to lower energy costs, complete the Energy Union, attract investments and be better prepared for potential energy crises. As a key component of the Clean Industrial Deal, this Plan will not only bring relief to households facing high energy bills, but also to industries that struggle with high production costs, with estimated overall savings of €45 billion in 2025, that will progressively increase until €130 billion in annual savings by 2030 and €260 billion by 2040.
The Action Plan will bring short-term relief to consumers and pave the way for the completion of the Energy Union by frontloading the benefits of more renewable energy, energy savings, deeper market integration and better interconnections. Crucially, it proposes actions to tackle the structural challenges that are driving up energy costs in the EU, notably Europe's reliance on imported fossil fuels and lack of full integration of the electricity system. The Plan builds on the recent reform of the Electricity Market Design, the REPowerEU Plan, sector-specific blueprints for wind, solar and grids and revised energy and climate legislation under the Fit for 55 package.
By accelerating investments in clean energy and infrastructure, and by bringing transparency and fairness to gas markets, energy can be made more affordable. A further reduction of permitting times for renewables and energy infrastructure will also help lowering power production costs. Consumers already benefit from around €34 billion every year thanks to the EU's internal energy market. Further integration could raise such benefits up to €40-43 billion per year already by 2030.
President Ursula von der Leyen said:" We're driving energy prices down and competitiveness up. We have already significantly reduced energy prices in Europe by doubling down on renewables. Now, we are going a step further with the Affordable Energy Action Plan as part of our Clean Industrial Deal. With it, we will achieve more predictable prices, stronger connections across Europe, and increased energy offtake. We will systematically remove remaining obstacles so that we can build a true Energy Union."
Lowering energy costs to provide immediate relief to consumers while completing the Energy Union
To make electricity more affordable, the Commission will tackle all three components of energy bills, namely network and system costs, taxes and levies and supply costs. We will make recommendations to the Member States to lower national taxes on electricity and enable consumers to switch suppliers more easily towards cheaper energy offers, among others. Building on existing EU electricity legislation, the Commission will also further support the uptake of long-term supply contracts which ultimately help break the link between retail electricity bills and high and volatile gas prices. To lower the network charges part of the energy bill, it will propose a methodology to ensure network charges reflect the costs of the energy system, incentivising the most efficient use of the grid.
Together with support to bring more and faster renewables, the Commission will also bring about significant benefits for consumers by supporting a broader uptake of energy efficiency solutions, which can lead to savings of up to €162 billion per year in 2030. An EU guarantee scheme to be developed in cooperation with the European Investment Bank will help de-risk investment in energy efficiency services and facilitate access to more efficient appliances and products with longer lifetimes.
EU gas prices are too high and are affecting the competitiveness of the European industry. To ensure fair competition, the Commission will step up its scrutiny of the EU gas markets with the help of the Agency for the Cooperation of Energy Regulators (ACER), the European Securities and Markets Authority (ESMA) and national regulators. We will also engage with reliable LNG suppliers to identify additional cost-competitive imports and harness the Union's purchasing power by aggregating demand from EU companies.
Ultimately, deeper integrated, well-functioning and decarbonised energy markets are the best shield against price volatility. This is why the Commission will strive to complete the Energy Union, with more interconnectors, a stronger grid and cross-border trading, and will roll out a set of initiatives to boost electrification and the decarbonisation of the heating and cooling sectors, to mobilise private capital and further digitalise the energy system, among others.
Being better prepared for potential crises
Security of supply is key to ensure prices remain stable. The Commission will update the EU energy security framework to address emerging threats such as cyber-attacks, critical infrastructure sabotage and risks from reliance on imports. It will also step up preparedness for potential price crisis, among others, by issuing guidance to Member States on how to reward consumers to reduce consumption at peak times and keep energy bills in check.
For more information
Questions and Answers on the Action Plan for Affordable Energy
Factsheet on the Action Plan for Affordable Energy
Action Plan for Affordable Energy
Press release on the Clean Industrial Deal
We’re driving energy prices down and competitiveness up. We have already significantly reduced energy prices in Europe by doubling down on renewables. Now, we are going a step further with the Affordable Energy Action Plan as part of our Clean Industrial Deal. With it, we will achieve more predictable prices, stronger connections across Europe, and increased energy offtake. We will systematically remove remaining obstacles so that we can build a true Energy Union.
Ursula von der Leyen, President of the European Commission
There can be no clean transition without access to affordable energy for all. By bringing down energy bills, this Action Plan will benefit European citizens and ensure European businesses stay the course on decarbonisation, thrive economically and become more competitive on the global stage. At the same time, it will ensure that the transition remains a socially fair process, leaving no one behind.”
Today’s challenges demand bold and ambitious actions to both reduce energy prices and safeguard our security. The answer to these challenges lies in a cleaner, cheaper, more efficient and connected Energy Union. This is why we will not step back on the green transition. We will step forward, with determination and urgency.
Dan Jørgensen, Commissioner for Energy and Housing
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Commission simplifies rules on sustainability and EU investments, delivering over €6 billion in administrative relief
The European Commission has adopted a new package of proposals to simplify EU rules and boost competitiveness, and unlock additional investment capacity. This is a major step forward in creating a more favourable business environment to help EU companies grow, innovate, and create quality jobs.
By bringing our competitiveness and climate goals together, we are creating the conditions for EU businesses to thrive, attract investment, achieve our shared goals – such as the European Green Deal objectives - and unlock our full economic potential.
The Commission has a clear target to deliver an unprecedented simplification effort, by achieving at least 25% reduction in administrative burdens, and at least 35% for SMEs until the end of this mandate. These first ‘Omnibus' packages, bringing together proposals in a number of related legislative fields, cover a far-reaching simplification in the fields of sustainable finance reporting, sustainability due diligence, EU Taxonomy, carbon border adjustment mechanism, and European investment programmes.
These proposals will reduce complexity of EU requirements for all businesses, notably SMEs and small mid-caps (SMCs), focus our regulatory framework on the largest companies which are likely to have a bigger impact on the climate and the environment, while still enabling companies to access sustainable finance for their clean transition.
If adopted and implemented as set out today, the proposals are conservatively estimated to bring total savings in annual administrative costs of around EUR 6.3 billion and to mobilise additional public and private investment capacity of EUR 50 billion to support policy priorities.
Making sustainability reporting more accessible and efficient
Specifically, the main changes in the area of sustainability reporting (CSRD and EU Taxonomy) will:
Remove around 80% of companies from the scope of CSRD, focusing the sustainability reporting obligations on the largest companies which are more likely to have the biggest impacts on people and the environment;
Ensure that sustainability reporting requirements on large companies do not burden smaller companies in their value chains;
Postpone by two years (until 2028) the reporting requirements for companies currently in the scope of CSRD and which are required to report as of 2026 or 2027.
Reduce the burden of the EU Taxonomy reporting obligations and limit it to the largest companies (corresponding to the scope of the CSDDD), while keeping the possibility to report voluntarily for the other large companies within the future scope of the CSRD. This is expected to deliver significant cost savings for smaller companies, while allowing businesses that wish to access sustainable finance to continue that reporting.
Introduce the option of reporting on activities that are partially aligned with the EU Taxonomy, fostering a gradual environmental transition of activities over time, in line with the aim to scale up transition finance to help companies on their path towards sustainability.
Introduce a financial materiality threshold for the Taxonomy reporting and reduce the reporting templates by around 70%.
Introduce simplifications to the most complex “Do no Significant harm” (DNSH) criteria for pollution prevention and control related to the use and presence of chemicals that apply horizontally to all economic sectors under the EU Taxonomy – as a first step in revising and simplifying all such DNSH criteria.
Adjust, among others, the main Taxonomy-based key performance indicator for banks, the Green Asset Ratio (GAR). Banks will be able to exclude from the denominator of the GAR exposures that relate to undertakings which are outside the future scope of the CSRD (i.e. companies with less than 1000 employees and €50m turnover).
Simplifying due diligence to support responsible business practices
The main changes in the area of sustainability due diligence will:
Simplify sustainability due diligence requirements so that companies in scope avoid unnecessary complexities and costs, e.g. by focusing systematic due diligence requirements on direct business partners; and by reducing the frequency of periodic assessments and monitoring of their partners from annual to 5 years, with ad hoc assessments where necessary.
Reduce burdens and trickle-down effects for SMEs and SMCs by limiting the amount of information that may be requested as part of the value chain mapping by large companies;
Further increase the harmonisation of due diligence requirements to ensure a level playing field across the EU;
Remove the EU civil liability conditions while preserving victims' right to full compensation for damage caused by non-compliance, and protecting companies against over-compensation, under the civil liability regimes of Member States; and
Give companies more time to prepare to comply with the new requirements by postponing the application of the sustainability due diligence requirements for the largest companies by one year (to 26 July 2028), while advancing the adoption of the guidelines by one year (to July 2026).
Simplifying the carbon border adjustment mechanism (CBAM) for a fairer trade
The main changes on CBAM will:
Exempt small importers from CBAM obligations, mostly SMEs and individuals. These are importers who import small quantities of CBAM goods, representing very small quantities of embedded emissions entering the Union from third countries. This works by introducing a new CBAM cumulative annual threshold of 50 tonnes per importer, thus eliminating CBAM obligations for approximately 182,000 or 90% of importers, mostly SMEs, while still covering over 99% emissions in scope.
Simplify the rules for companies that remain in CBAM scope: on authorisation of CBAM declarants, as well as the rules related to CBAM obligations, including the calculation of embedded emissions and reporting requirements.
Make CBAM more effective in the long term, by strengthening the rules to avoid circumvention and abuse.
This simplification precedes a future extension of CBAM to other ETS sectors, downstream goods, followed by new legislative proposal on the scope extension of CBAM in early 2026.
Unlocking investment opportunities
The Commission is also proposing a series of amendments to simplify and optimise the use of several investment programs including InvestEU, EFSI, and legacy financial instruments.
InvestEU, the EU's largest risk-sharing instrument to support priority investments within the Union, plays a key role in addressing financial barriers and driving the investments needed for competitiveness, research and innovation, decarbonisation, environmental sustainability and skills. Currently, close to 45 % of its operations are supporting climate objectives.
The proposed changes:
Increase the EU's investment capacity through the use of returns from past investments, as well as optimised use of funds still available under the legacy instruments, thus allowing for more funding to be made available to businesses. This is expected to mobilise around €50 billion in additional public and private investments. The increased InvestEU capacity will be mainly used to finance more innovative activities in support of priority policies, such as the Competitiveness Compass and the Clean Industrial Deal.
Make it easier for Member States to contribute to the programme and support their own businesses and mobilise private investments.
Simplify administrative requirements for our implementing partners, financial intermediaries and final recipients, notably SMEs. The simplification measures proposed are expected to generate €350 million in cost savings.
Next steps
The legislative proposals will now be submitted to the European Parliament and the Council for their consideration and adoption. The changes on the CSRD, CSDDD, and CBAM will enter into force once the co-legislators have reached an agreement on the proposals and after publication in the EU Official Journal. In line with the Communication on simplification and implementation published on 11 January 2024, the Commission invites the co-legislators to treat this omnibus package with priority, in particular the proposal postponing certain disclosure requirements under the CSRD and the transposition deadline under CSDDD, as they aim to address key concerns identified by stakeholders.
The draft Delegated Act amending the current delegated acts under the Taxonomy Regulation will be adopted after public feedback and will apply at the end of the scrutiny period by the European Parliament and the Council.
Get a detailed breakdown of the key simplifications and their impact on the Commission's Q&A.
Read the full Commission proposals (Omnibus 1 | Omnibus 2) to understand the legal changes introduced.
Explore the Commission Staff Working Documents (1 and 2) for a detailed analysis of the rationale and expected impact of the simplification measures.
Call for Evidence: Taxonomy Delegated Acts
Simplification promised, simplification delivered! We are presenting our first proposal for far-reaching simplification. EU companies will benefit from streamlined rules on sustainable finance reporting, sustainability due diligence and taxonomy. This will make life easier for our businesses while ensuring we stay firmly on course toward our decarbonisation goals. And more simplification is on the way.
We are taking concrete steps to cut red tape and make EU rules more accessible and effective for citizens and businesses. Today’s package is the first step of our far-reaching simplification efforts across all sectors of legislation. We can show that Europe is not only an incredible market to invest, produce, sell and consume but also a simple market. This proposal delivers real simplifications—less administrative burden, easier access to funding, and clearer, more predictable rules. We keep our objectives but change the way to better achieve them.
Implementation and Simplification: ‘The world is changing before our eyes. The European Union needs a strong economy to defend its values and achieve its goals at home and around the world. Reducing unnecessarily complex EU rules is a vital part of our plan to make Europe more competitive. This simplification agenda is not about deregulation. It is about achieving our goals in a smarter and less burdensome way, so that our companies, and especially our SMEs, can focus on growth, jobs, innovation, and helping us secure the green and digital transitions. Today we take an important first step in that direction.
Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification
We are defining a path towards a more growth-friendly, more usable and proportionate EU sustainable finance rules. By facilitating a more conducive business environment, we can drive growth and EU’s competitiveness, attract investments, and continue to deliver on our Green Deal objectives. It's about striking the right balance between reducing excessive administrative burden and keeping our longer-term goals in focus, because I firmly believe that sustainability is a key competitive advantage.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union
We are significantly simplifying compliance for large companies, while upholding the core objective of the CSDDD to prevent companies from indirectly contributing to exploitative business practices, harming human rights, the climate, or the environment through their value chains. We also ensure smaller business partners are not burdened by excessive information requests. By striking this balance, we hold companies accountable for their actions and at the same time we promote more transparent and responsible business operations globally.
Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection
Today, we’re making it simpler to do business in Europe. By simplifying the Carbon Border Adjustment Mechanism (CBAM), we're empowering companies to reduce their carbon footprint without compromising their competitive edge. While exempting around 90% of companies from CBAM reporting, we still ensure the capture of over 99% of emissions. This marks the first step in a broader CBAM review.
President von der Leyen will hold Strategic Dialogue on Steel on 4 March, and announces Steel and Metals Action Plan
As announced by President von der Leyen on 7 February, the European Commission will set up a Strategic Dialogue on Steel aimed at charting a decisive course for the future of the European steel industry. The initiative underscores the Commission's firm commitment to this strategic sector, recognizing its central role in innovation, growth, employment, and the EU's broader strategic autonomy.
On the basis of a common understanding on the challenges ahead, Executive Vice-President Séjourné has been tasked with developing a dedicated Steel and Metals Action Plan, to be launched in spring of this year.
President Ursula von der Leyen said "The steel industry is a key sector of our European single market. At the same time this industry is of utmost importance in our fight against climate change. The Strategic Dialogue will help develop a concrete Action Plan to tackle the unique challenges of this sector in the clean industrial transition. We want to ensure that the European steel industry is both competitive and sustainable in the long-term.”
Faced with unprecedented challenges – soaring energy costs, raw material access issues, unfair global competition, and new US tariffs – the steel industry requires targeted action. The Strategic Dialogue on Steel aims to deliver a robust, actionable plan for the sector's future.
On 4 March, President Ursula von der Leyen will chair the high-level meeting of the Strategic Dialogue on Steel. Key representatives from across the steel value chain, including steel manufacturers, raw material suppliers, off-takers, and representatives of social partners and civil society have been invited to participate to this meeting.
The Dialogue will build upon the foundation laid by the recently published EU Competitiveness Compass and the forthcoming EU Clean Industrial Deal. Key discussion points will include how to enhance competitiveness and circularity, drive the clean transition, decarbonisation, and electrification, ensure fair trade relations and an international level playing field. Further information can be found in the annexed Concept Note that will guide the discussions in the Strategic Dialogue.
The Commission will inform and consult with the Council and European Parliament throughout the Dialogue process. Wider consultations with other stakeholders across the industry will also be conducted
The European steel industry is a vital component of the EU economy and a key enabler of its strategic autonomy.
The European steel industry, with approximately 500 production sites across 22 Member States, contributes around EUR 80 billion to the EU's GDP and supports over 2.5 million jobs. It provides essential inputs to critical sectors such as automotive, construction, defence, net-zero technologies, electric vehicles (EVs), and critical infrastructure, underpinning entire industrial value chains.
Concept Note
Statement by the President: College visit to Poland
The steel industry is a key sector of our European single market. At the same time this industry is of utmost importance in our fight against climate change. The Strategic Dialogue will help develop a concrete Action Plan to tackle the unique challenges of this sector in the clean industrial transition. We want to ensure that the European steel industry is both competitive and sustainable in the long-term.
Europe has a plan for its industry: we must produce more, we must produce clean, and we must produce European. This starts with our most strategic sectors: steel is one of them. We must protect our steel sector from unfair foreign competition and boost our own production of clean European steel. This is not only good for the steel sector. It is good for a whole series of other sectors that depend on steel. This action plan is therefore a key component of our industrial competitiveness, and our overall economic security.
Commission strengthens further the European Union's financial risk management framework
The European Commission is taking important steps to enhance its financial risk management and compliance framework to keep pace with the significant growth of the Union's financial operations.
Today, the Commission decided to expand the role of the independent Chief Risk Officer, with an oversight over all of the Union's financial operations, including borrowing, debt and liquidity management, lending operations and budgetary guarantees, as well as assets under management. The position is held by Iliyana Tsanova since her appointment in 2021.
Over the past five years, the Union budget has increasingly been relying on different financial instruments to leverage on the power of the Union budget and thus provide a more efficient use of public resources. Borrowing and lending operations and budgetary guarantees have supported investments and economic recovery in Member States, provided vital support to Ukraine and assisted accession and neighborhood countries.
The strengthening of the risk management of the EU financial operations is part of the Commission's commitment to robust financial governance of the EU budget and is in line with President von der Leyen's mission letter to the Commissioner for Budget, Anti-fraud and Public Administration, Piotr Serafin.
The Chief Risk Officer function is a central pillar of the 'three lines of defence' model – a best-practice framework for risk governance. In this model:
the first line of defence consists of the Commission departments managing EU borrowing, lending and asset management operations as well as budgetary guarantees;
the Chief Risk Officer, as an independent corporate second line of defence, formulates risk management policies and provides independent risk oversight, ensuring additional controls and accountability;
the Internal Audit Service, as the third line of defence, provides independent assurance on risk governance.
With the adoption of this framework model and the establishment of an independent Chief Risk Officer, the Commission has fully implemented all recommendations of the European Court of Auditors' special report 16/2023 on EU debt management.
The European Union relies on various financial instruments to support its policy priorities, for instance the bond and debt securities issuance. A landmark programme currently funded by EU-Bonds is the NextGenerationEU recovery instrument. The EU also issues EU-Bonds to finance loans for countries in the EU neighbourhood, including essential financial support for Ukraine.
In addition to borrowing, the EU uses budgetary guarantees to attract private investment in strategic sectors such as infrastructure, innovation, and sustainability. Programmes like InvestEU and the European Fund for Sustainable Development Plus provide financial backing for implementing partners (such as the European Investment Bank and national promotional banks), for loans and investments. This reduces the risk for private investors and enabling projects that might not otherwise secure funding. To cover for the financial risks associated to budget guarantees, the EU maintains a Common Provisioning Fund, a pooled reserve designed to cover potential losses linked to budgetary guarantees and financial assistance. The Common Provisioning Fund ensures that the EU budget remains resilient while continuing to support long-term investment and economic stability.
Link to the Commission Decision
EU as a borrower
Report on contingent liabilities arising from budgetary guarantees and financial assistance and the sustainability of those contingent liabilities
Latest report from the Commission to the European Parliament and the Council on the Common Provisioning Fund in 2023
Strengthening the role of the Chief Risk Officer is a testament to the EU's commitment to maintaining high standards of financial risk oversight. The use of loans and budgetary guarantees will remain an essential instrument to drive the EU’s political priorities and support investments for climate transition, competitiveness and external action. As we navigate an increasingly complex financial landscape, these measures ensure that the EU remains prepared to address emerging challenges with robust risk management practices.
Piotr Serafin, Commissioner for Budget, Anti-Fraud and Public Administration
The European Commission appoints a new Director at its Directorate-General for Budget
The European Commission has decided today to appoint Christiane Canenbley as Director of Directorate B at the Directorate-General for Budget. This DG is responsible for managing the budget of the European Union, and therefore proposes and implements the financial framework, as well as collects the resources that EU countries have agreed to contribute. The date of effect will be determined later.
Ms Canenbley, a German national, brings almost 20 years of experience at the European Commission. Over the last 4 months she has been acting Director of Directorate B at DG BUDG, responsible for the preparation, negotiation and implementation of the Commission proposals for the Multi-Annual Financial Framework. Preciously she had been Political Adviser of President Jean-Claude Juncker, responsible for the preparations of the Multi-Annual Financial Framework, the Digital Single Market and the Single Market. In addition, during the last mandate, Ms Canenbley was a Deputy Head of Cabinet of Executive Vice-President Vestager, and later moved to DG BUDG where she became Principal Adviser to the Director-General on Strategic technologies (STEP). Over her first years at the European Commission, she held several positions at DG AGRI, including managerial ones where, among others, she looked at the impact of socio-economic development on EU agriculture.
Prior to joining the European Commission, Ms Canenbley worked as a researcher at the University of Hamburg.
(For more information: Maciej Berestecki – Tel. : +32 2 296 64 83; Isabel Otero Barderas - Tel.: +32 2 296 69 25)
Commission gathers higher education leaders to shape the future of European Universities alliances
Tomorrow, the Commission will bring together more than 400 higher education leaders and policymakers, among others, in Brussels, for a high-level meeting on the future of the European Universities initiative. Marking five years since the launch of the initiative, the event ‘Shaping the Future: European Universities for a Competitive Europe' will take stock of achievements, address remaining challenges, and explore ways to reinforce transnational cooperation in higher education to contribute to Europe's sustainable prosperity and competitiveness.
Since its launch, university alliances have expanded joint study programmes, mainstreamed mobility, and given students access to new international learning pathways. The initiative is making European higher education more connected, more competitive, and increasingly present in the global race for talent.
The event takes place at a key moment, as the Commission prepares to present the Union of Skills package: a crucial initiative to address skills shortages, digital and green transitions, and Europe's ability to develop, retain and attract talent.
More information on the event and how to watch it is available on the European Education Area website.
(For more information: Eva Hrnčířová – Tel.: +32 2 298 84 33; Anna Gray – Tel.: +32 2 298 08 73)
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