A plan for competitive, green and resilient industries

We, Renew Europe, want our Union to fulfil its promise of prosperity and opportunities for our fellow Europeans. We have championed initiatives to make our continent freer, fairer and greener, but much more remains to be done.

We are convinced that Europe has what it takes to become the global industrial leader, especially in green and digital technologies. Yet it is faced with higher energy prices and lower levels of investment, which creates a double risk of internal and external fragmentation.

The Russian aggression against Ukraine has shown us that our European way of life cannot be taken for granted. While we stand unwaveringly at the side of our Ukrainian friends and commit to the rebuilding of their homeland, we also need to protect our freedom and prosperity.

That is why Europe needs an urgent and ambitious plan for a competitive, productive and innovative industry ‘made in Europe’. Our proposals below would translate into many more jobs, a faster green transition and increased geopolitical influence.

We must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.

1. Reforms to kick start the European economy: A European Clean Tech, Competitiveness and Innovation Act

While the EU can be proud of its single market, we must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.

  • In addition to the acceleration of the deployment of sustainable energy, we call on the Commission to propose a European Clean Tech, Competitiveness and Innovation Act, which would:
  • While the EU can be proud of its single market, we must improve the conditions for companies, big and small, to innovate, to grow and to thrive globally.
  • In addition to the acceleration of the deployment of sustainable energy, we call on the Commission to propose a European Clean Tech, Competitiveness and Innovation Act, which would:
  • Cut red tape and administrative burden, focusing on delivering solutions to our companies, particularly for SMEs and startups.
  • Adapt state aid rules for companies producing clean technologies and energies.
  • Introduce fast-track permitting for clean and renewable energies and for industrial projects of general European interest.
  • Streamline the process for important Projects of Common European Interest, with adequate administrative resources.
  • Guarantee EU-wide access to affordable energy for our industries.
  • Strengthen the existing instruments for a just transition of carbon-intensive industries, as they are key to fighting climate change.
  • Facilitate private financing by completing the Capital Markets Union to allow our SMEs and startups to scale up.
  • Set the right conditions to increase Europe’s global share of research and development spending and reach our own target at 3 percent of our GDP.
  • Build up the European Innovation Council to develop breakthrough technologies.
  • Deliver a highly skilled workforce for our industry.
  • Deepen the single market by fully enforcing existing legislation and further harmonization of standards in the EU as well as with third countries.

We need to reduce more rapidly our economic dependencies from third countries, which make our companies and our economies vulnerable.

2. Investments supporting our industry to thrive: A European Sovereignty Fund and Reform Act

While the EU addresses, with unity, all the consequences of the war in Ukraine, we need to reduce more rapidly our economic dependencies from third countries, which make our companies and our economies vulnerable.

In addition to the new framework for raw materials, we call on the Commission to:

  • Create a European Sovereignty Fund, by revising the MFF and mobilizing private investments, to increase European strategic investments across the Union, such as the production on our soil of critical inputs, technologies and goods, which are key to the green and digital transitions.
  • Carry out a sovereignty test to screen European legislation and funds, both existing and upcoming, to demonstrate that they neither harm the EU’s capacity to act autonomously, nor create new dependencies.
  • Modernize the Stability and Growth Pact to incentivize structural reforms and national investments with real added value for our open strategic autonomy, in areas like infrastructure, resources and technologies.

While the EU has to resist protectionist measures, we will always want to promote an open economy with fair competition.

3. Initiatives creating a global level playing field:

A New Generation of Partnerships in the World Act

While the EU has to resist protectionist measures, we will always want to promote an open economy with fair competition.

  • In addition to all the existing reforms made during this mandate, notably on public procurement and foreign subsidies, we call on the Commission to:
  • Make full use of the EU’s economic and political power regarding current trade partners to ensure we get the most for our industry exports and imports, while promoting our values and standards, not least human rights and the Green Deal.
  • Promote new economic partnerships with democratic countries so we can face climate change and all the consequences of the Russian aggression together.
  • Ensure the diversification of supply chains to Europe, particularly regarding critical technologies and raw materials, based on a detailed assessment of current dependencies and alternative sources.
  • Use all our trade policy instruments to promote our prosperity and preserve the single market from distortions from third countries.
  • Take recourse to dispute settlement mechanisms available at WTO level whenever necessary to promote rules-based trade.
  • Adopt a plan to increase our continent’s attractiveness for business projects.
  • Create a truly European screening of the most sensitive foreign investments.
  • We, Renew Europe, believe that taken together these initiatives will foster the development of a competitive and innovative European industry fit for the 21st century. It will pave the way for a better future for Europeans that is more prosperous and more sustainable.



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Chairman FAO: Western powers pressure China’s UN food boss to grip global hunger crisis

ROME, Italy — The Chinese head of a crucial U.N. food agency has come under intense scrutiny by Western powers, who accuse him of failing to grip a global hunger crisis exacerbated by Russia’s war in Ukraine.

Qu Dongyu, director general of the Food and Agriculture Organization, has alienated the Western powers that are the agency’s main backers with his technocratic leadership style and connections to Beijing that, in their view, have damaged its credibility and capability to mitigate the crisis.

POLITICO has interviewed more than a dozen U.N. officials and diplomats for this article. The critical picture that emerges is of a leader whose top-down management style and policy priorities are furthering China’s own agenda, while sidelining the U.N.’s Sustainable Development Goals.

Russia’s invasion of Ukraine in February was met with weeks of eerie silence at the FAO, and although the messaging has since changed, Qu’s critics say FAO should be showing stronger political leadership on the food crisis, which threatens to tip millions more people into hunger.

“Nobody actually takes him seriously: It’s not him; it’s China,” said one former U.N. official. “I’m not convinced he would make a single decision without first checking it with the capital.”

In his defense, Qu and his team say a U.N. body should not be politicized and that he’s delivering on the FAO’s analytical and scientific mandate.

Chairman FAO

Qu Dongyu was elected in 2019 to run the Rome-based agency, handing China a chance to build international credibility in the U.N. system, and punishing a division between the EU and the U.S after they backed competing candidates who lost badly. The election was clouded by allegations of coercion and bribery against China.

Now, as he prepares for a likely reelection bid next year to run FAO until 2027, Qu — who describes himself as a conflict-averse “humble, small farmers’ son” — is under intensifying scrutiny over his leadership during the crisis.

After three years of largely avoiding the headlines, Qu drew criticism from countries like France and the U.S. for his sluggish and mealy-mouthed response to Russia’s invasion of Ukraine, a massive exporter of food to developing countries.

The EU and U.S. forced an emergency meeting of the FAO’s Council in the spring in order to pressure the FAO leadership into stepping up to the plate, with Ukraine demanding he rethink his language of calling it a “conflict” and not a war. The communications division was initially ordered to keep schtum about the war and its likely impacts on food supply chains. In May, Ukrainians protested outside FAO HQ in Rome demanding Russia be kicked out of the organization.

At a meeting of the FAO Council in early December, countries like France, Germany and the U.S. successfully pushed through yet another demand for urgent action from FAO’s leadership, requesting fresh analysis of impact of Russia’s war on global hunger, and a full assessment of the damage done to Ukraine’s vast farm system.

China has not condemned Russia outright for invading Ukraine, while the EU and the U.S. use every opportunity in the international arena to slam Moscow for its war of aggression: Those geopolitical tensions are playing out across the FAO’s 194 member countries. Officials at the agency, which has $3.25 billion to spend across 2022 and 2023, are expected to act for the global good — and not in the narrow interest of their countries.

Qu is said still to be furious about the confrontation: “[He] is still upset about that, that really annoyed him,” said one ambassador to the FAO. “He sees the EU as an entity, a player within the FAO that is obstructing his vision.”

Qu featured on a TV screen inside the FAO headquarters in Rome | Eddy Wax/POLITICO

Though Qu has now adapted his language and talks about the suffering being caused by Russia’s war, some Western countries still believe FAO should respond proactively to the food crisis, in particular to the agricultural fallout from Russia’s invasion of Ukraine. The FAO’s regular budget and voluntary funds are largely provided by EU countries, the U.S. and allies like Japan, the U.K. and Canada. The U.S. contributes 22 percent of the regular budget, compared to China’s 12 percent.

Qu is determined to stick to the mandate of the FAO to simply provide analysis to its members — and to steer clear of geopolitics.

“I’m not [a] political figure; I’m FAO DG,” he told POLITICO in October, in an encounter in an elevator descending from FAO’s rooftop canteen in Rome.

FAO’s technocratic stance is defended by other members of Qu’s top team, such as Chief Economist Máximo Torero, who told POLITICO in May: “You are in a war. Some people think that we need to take political positions. We are not a political entity that is the Security Council — that’s not our job.”

Apparatchik

Qu can hardly be said to be apolitical, as he is a former vice-minister of agriculture and rural affairs of the Chinese Communist Party.

On top of his political background he has expertise in agriculture. He was part of a team of scientists that sequenced the potato genome while he was doing a PhD at Wageningen University in the Netherlands. In an email to POLITICO his professor, Evert Jacobsen, remembered Qu’s “enthusiasm about his country,” as well as is “strategic thinking” and “open character.”

Yet Western diplomats worry that many of the policy initiatives he has pushed through during his tenure map onto China’s foreign policy goals.

They say that the U.N. Sustainable Development Goals have been eclipsed by his own initiatives, such as his mantra of the Four Betters (production, nutrition, environment, life), and Chinese-sounding plans from “One Country, One Priority Product” to his flagship Hand-in-Hand Initiative.

Some Western diplomats say these bear the hallmarks of China’s Global Development Initiative, about which Qu has tweeted favorably.

Detractors say these are at best empty slogans, and at worst serve China’s foreign policy agenda. “If the countries that are on the receiving end don’t exercise agency you need to be aware that these are policies that first and foremost are thought to advance China, either materially or in terms of international reputation, or in terms of diplomacy,” said Francesca Ghiretti, an analyst at the Mercator Institute for China Studies (MERICS).

Insiders say he’s put pressure on parts of the FAO ecosystem that promote civil society engagement or market transparency: two features that don’t go down well in Communist China. The former U.N. official said Qu had subjected the G20 market transparency dashboard AMIS, housed at FAO, to “increased pressure and control,” causing international organizations to step in to protect its independence earlier this year.

The diplomat said Qu was trying to suffocate the Committee on World Food Security, which invites civil society and indigenous people’s groups into FAO’s HQ and puts them on a near-equal footing with countries. “What has he accomplished in two-plus years? You can get Chinese noodles in the cafeteria,” they said.

Flags at the entrance to the FAO headquarters in Rome | Eddy Wax/POLITICO

But at a U.N. agency that has historically been deeply dysfunctional, Qu is popular among staff members.

“Mr. Qu Dongyu brought a new spirit on how to treat staff and established trust and peace between staff and management,” said one former FAO official.

Even his sharpest critics concede that he has done good things during his tenure. He made a point of shaking every staff member’s hand upon his election, even turning up occasionally unannounced to lunch with them in the canteen that he’s recently had refurbished. There’s also widespread appreciation among agriculture policymakers of the high quality of economic work turned out by FAO, and support for his climate change and scientific agenda.

“The quality of data FAO produces is very good and it’s producing good policy recommendations,” one Western diplomat acknowledged.

FAO play

Three years into his term, there’s a much stronger Chinese presence at FAO and Chinese officials occupy some of the key divisions, covering areas such as plants & pesticides, land & water, a research center for nuclear science and technology in agriculture, and a division on cooperation between developing countries. A vacant spot atop the forestry division is also expected to go to a Chinese candidate.

Experts say those positions are part of a strategy. “China tries to get the divisions where it can grow its footprint in terms of shaping the rules, shaping the action and engaging more broadly with the Global South,” said Ghiretti, the MERICS analyst.

The EU Commission is closely monitoring trends in staff appointments and data collection. “He’s hired a lot of young Chinese people who will fill [the] ranks later,” said an EU diplomat.

Mandarin is heard more than before in the corridors of the Rome HQ, a labyrinthine complex built in the 1930s by Fascist dictator Benito Mussolini to house its ministry of overseas colonies.

Western diplomats and staffers past and present describe Qu as a poor communicator, who displays little care about engaging with or being accountable to countries and who tends to leave meetings after delivering perfunctory remarks, all of which leaves space for rumor and suspicion to grow.

Even those who acknowledge that Qu has made modest achievements at the helm of FAO still see his leadership style as typical of a Chinese official being kept on a tight leash by Beijing. The EU and U.S. criticized Qu’s move to push back an internal management review that was meant to be conducted by independent U.N. inspectors, and will now likely not emerge until after the next election.

And although FAO is still receiving bucketloads of Western funding, its fundraising drive specifically for rural families and farmers in war-torn Ukraine is still $100 million short of its $180 million target, a pittance in an international context — especially amid deafening warnings of a global food supply crisis next year. 

That’s partly because the U.S. and EU prefer to work bilaterally with Kyiv rather than going through FAO. “This is the time for FAO to be fully funded,” said Pierre Vauthier, a French agronomist who runs the FAO operation in Ukraine. “We need additional money.”

A plaque outside Qu’s fourth floor office at the FAO headquarters in Rome | Eddy Wax/POLITICO

There’s no love lost on Qu’s side, either. In June, he went on a unscripted rant accusing unnamed countries of being obsessed with money, apparently in light of criticism of his flagship Hand-in-Hand Initiative.

“You are looking at money, I’m looking to change the business model because I’m a farmer of small poor, family. You from the rich countries, you consider the money first, I consider wisdom first. It’s a different mentality,” Qu said, before complaining about his own salary being cut.

Asked repeatedly, Qu did not confirm to POLITICO whether he would stand for a second four-year term, but traditionally FAO chiefs serve at least twice and he is widely expected to run. Nominations officially opened December 1. The question is whether the U.S., EU or a developing nation will bother trying to run against him, when his victory looks all but inevitable.

There’s competition for resources between the World Food Programme (WFP), a bastion of U.S. development power, and FAO. A Spaniard, Alvaro Lario, was recently appointed to run the third Rome-based U.N. food agency, the International Fund for Agricultural Development, while WFP’s chief David Beasley is expected to be replaced by another American next year.

In any case, the countries that Qu will likely count on to be re-elected are not so interested in the political machinations of the West or its condemnation of the Russia’s war in Ukraine, which it seeks to impress upon FAO’s top leadership.

“Our relations with the FAO are on a technical basis and not concerned by the political positions of the FAO. What interests us is that the FAO supports us to modernize our agriculture,” said Cameroon’s Agriculture Minister Gabriel Mbairobe.

Other African countries defend FAO’s recent track record: “They’ve been very, very active, let’s be honest,” said Yaya A.O. Olaniran, Nigeria’s ambassador to the FAO. “It’s easy to criticize.”

This story has been updated.



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