3 Mar

In the context of the European Green Deal Competitiveness ministers had a policy debate on the challenges and opportunities relating to the transition to climate neutral and circular industry. Member states broadly agreed that a right balance had to be established between the objectives of the Green Deal on the one hand and maintaining the competitiveness of the European industry on the other. It was not contested either that digitalisation, the use of digital technologies were essential enablers of the transition to a climate neutral and circular economy. The Hungarian delegation suggested that instead of designing individual policies for certain sectors, fairness, equal opportunities and technology neutrality should be established as leading principles in policy making.

The Council adopted its conclusions on Better Regulation "Ensuring competitiveness and sustainable, inclusive growth", also supported by Hungary. The Hungarian Government upholds progressive initiatives concerning regulatory and administrative burden reduction, which could contribute to enhancing the competitiveness of European enterprises, especially, small- and medium sized companies.
The ministers exchanged views on the Single Market Performance Report, which was a novelty in the cycle of the European Semester 2020. The majority of ministers endorsed the scope of the Report and highlighted the need for a holistic approach regarding different policy areas, also supporting that the Report should form part of the Semester in the future. Many stressed the urgent need for eliminating the market barriers, especially in the services sector, with a view to deepening the Single Market. Hungary acknowledges that the European Semester, as a coordination tool for economic and employment policy at EU and Member States level, is a well-functioning framework which also present concrete results. In our view, we should focus on strengthening the original objectives of the European semester in the future.

As a reaction to the latest developments concerning the spread of the Coronavirus ‘COVID-19’, the Council reviewed its possible impacts on the EU industry. Together with the Commission, Member States agreed that coordinated actions were needed on European level in order to contain the supply disruptions already visible in the industrial value chains.

On the second day (28 February) the Council adopted a partial general approach on the Annex to the Strategic Innovation Agenda (SIA) of the European Institute of Innovation and Technology (EIT). The document sets out the priority fields and strategy of the EIT for the period 2021-2027. It defines the EIT's objectives, key actions, mode of operation, expected results and resources needed. It also ensures coherence of the EIT with Horizon Europe.

Next, ministers exchanged views on the EU strategy regarding international cooperation in research and innovation. The delegations acknowledged the importance of international cooperation for maximising the potential of European R&I. At the same time, several ministers stressed the need for cooperation agreements to meet the conditions of reciprocity, added value and respect of EU values. There was broad support for a differentiated approach, allowing for collaboration with countries in areas of mutual strategic interest. Furthermore, ministers called for investing more in research and innovation in order to attract talented researchers from third countries but also to keep EU researchers within the EU.