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Commitment To Level Playing Field On State Aid, Hardliners Win On Migration

EU

Earlier this morning the European Council published its agreed conclusions following a marathon extraordinary Council summit, with agreements reached on controversial migration issues (a major political flashpoint in certain member states) and on the potential loosening of state aid rules in order to counter the US' Inflation Reduction Act.

  • Full conclusions: https://www.consilium.europa.eu/media/61997/2023-0...
  • Regarding the loosening of state aid, the conclusions state that "procedures need to be made simpler, faster and more predictable, and allow for targeted, temporary and proportionate support to be deployed speedily" but in a nod to countries concerned about Germany and France using their substantial reserves to out-compete EU partners, the Council agreed that "The integrity of and the level playing field in the Single Market must be maintained." Dutch PM Mark Rutte stated that any loosening of state air rules would be “temporary, targeted, very much focused on innovation.”
  • On migration, the 'hardliners' within the EU appear to have won out, with the Council agreeing “to immediately mobilise substantial EU funds and means” that will allow countries to enhance their “border protection capabilities and infrastructure.” This will come in the form of more effective “surveillance, including aerial surveillance, and equipment.” The use of fences to block EU borders was derided in previous years (particularly during the US Presidency of Donald Trump) but under sustained pressure - notably from Austrian Chancellor Karl Nehammer - the EU has agreed to more forceful measures to combat illegal migration.

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