The disagreement between France and the European Commission over the Mercosur trade agreement has reached a new height, exemplified by the absence of Commission President Ursula von der Leyen from the reopening ceremony of Notre Dame Cathedral. Her name was notably missing from the official guest list, reportedly due to a "communication problem" between Brussels and Paris. However, this explanation appears dubious and is widely seen as a convenient excuse. Ironically, French President Emmanuel Macron had recently supported von der Leyen’s reappointment as Commission President.
This incident has provided Ms. von der Leyen with an unexpected taste of marginalization within the European Union—a feeling often shared by small and medium-sized enterprises (SMEs) in the EU. SMEs frequently find themselves overlooked or excluded, much like von der Leyen was in this instance. Notably, this "communication error" did not affect Macron’s weekend meetings with U.S. President-elect Donald Trump and Ukrainian President Volodymyr Zelenskyy, highlighting the selective nature of these interactions.
Germany Hosts Yet Another Steel Summit Amid Industry Challenges
On Monday, a third "steel summit" convenes at the German Chancellery, continuing a series of discussions led by Chancellor Olaf Scholz. Following earlier summits on October 29 and November 15, 2024, this meeting focuses exclusively on German steel producers, trade unions, and works councils. The agenda aims to solidify measures to support the struggling steel industry, which has already been allocated over €7 billion in additional subsidies this year alone. These figures exclude pre-existing support mechanisms, such as free EU CO2 certificates and electricity price compensation for energy-intensive industries, which together cost taxpayers around €1.5 billion annually.
The Chancellor's approach has raised questions about his priorities, as the invited participants suggest a focus on appeasing key industry players and his political base. This strategy echoes criticisms directed at von der Leyen’s perceived neglect of SMEs, as smaller businesses once again find themselves excluded from significant policy discussions. Instead of addressing underlying issues like boosting domestic demand for steel, the government appears committed to injecting billions of euros into a sector plagued by structural inefficiencies.
Election-Driven Policies or Genuine Industry Support?
The timing and structure of these summits suggest a political strategy aimed at securing votes rather than implementing long-term solutions. Critics argue that the focus on steel industry stakeholders over SMEs reflects a broader pattern of neglect for smaller economic players. Meanwhile, domestic steel producers continue to grapple with challenges rooted in outdated policies and global competition.
While the Chancellor’s efforts to support the steel industry may resonate with certain constituencies, they risk perpetuating inefficiencies without fostering innovation or addressing broader economic concerns. This strategy may provide short-term relief but raises serious questions about the sustainability of these policies in the long run.