Italy and France strengthen cooperation on EU industrial policy reform

Italian Minister for Enterprises and Made in Italy, Adolfo Urso, met with French Minister for Industry and Energy, Marc Ferracci, in Paris on the sidelines of the AI Summit. This marks the sixth meeting between the two ministers in recent months, reinforcing the growing collaboration between Italy and France on key European industrial policy issues. Their cooperation will be further solidified during the upcoming Italy-France industrial policy meeting under the Quirinal Treaty, set to take place in Paris following the previous session in Rome in March 2023.

The discussions focused on European industrial policy and enhancing cooperation between Italian and French companies in strategic sectors. A key topic was the revision of the Carbon Border Adjustment Mechanism (CBAM) to support the European industry in meeting decarbonization challenges, particularly in energy-intensive sectors such as steel and chemicals. Urso and Ferracci agreed on the urgency of revising CBAM to ensure European industry remains competitive while transitioning to sustainable practices.

Italy and France will present a joint request to include CBAM revision as a priority agenda item at the next Competitiveness Council meeting on March 6. The goal is to integrate this revision within the 'Clean Industrial Deal' and upcoming sectoral policy documents prepared by the European Commission. “Our countries share the need to immediately revise CBAM to safeguard industrial competitiveness while addressing decarbonization,” Urso stated. “Europe cannot afford to penalize key strategic sectors such as steel and chemicals, which are fundamental to our industrial autonomy and economic stability. The geopolitical context requires Europe to reduce dependence on external suppliers for critical materials and technologies.”

The discussion also covered the automotive sector, where Urso stressed the need for the European Commission’s strategic dialogue to follow a technology-neutral approach, allowing for the continued use of biofuels beyond 2035. “We must urgently remove excessive penalties, but within a comprehensive reform strategy that supports the sustainability of European enterprises. A piecemeal approach is not enough; we need a full-scale revision now,” he emphasized.

Another critical issue discussed was the supply of raw materials and the development of gigafactories in Europe. Urso underlined the urgency of addressing these challenges proactively, stating, “This is a matter of economic and strategic security. Delaying action will only make the problem more difficult to resolve in the future.”

Source and Photo: Ministry of Enterprise and Made in Italy