THE STATE OF THE EUROPEAN UNION Towards a new legislative term

THE STATE OF THE EUROPEAN UNION 98 will come into force as early as 2026. Critics fear, how- ever, that this sum will not be sufficient.According to the agreement, all the revenue of EU Member States from emissions trading will flow into climate and energy- related projects and social mitigation of the energy and heat transition. The new Climate Social Fund is intended to support vulnerable citizens and small businesses with investments to increase energy efficiency. Nuclear policy as a bone of contention Despite the agreement on more ambitious climate tar- gets, the outlook is by no means all rosy. While 2022 was still largely driven by the desire to send a strong signal of European unity, 2023 increasingly reveals an- tagonisms between Member States. Nuclear energy is a constant point of conflict, with the issue being hotly contested at the European level and debates repeatedly slowing down legislation regarding important energy policy reforms. The demand for the promotion of nuclear energy is also back on the table. In 2023, a nuclear al- liance initiated by France was formed in Europe. Mem- bers are Bulgaria, Croatia, the Czech Republic, Finland, France, Hungary, the Netherlands, Poland, Romania, Slovakia and Slovenia. Italy, after initial interest, has temporarily withdrawn, and Sweden initially took a low- profile position because of its presidency of the Council. The above-mentioned states have set themselves the goal of closer cooperation in the nuclear supply chain, but are also lobbying hard to open up European funding pots for nuclear energy. The fact that France is acting so resolutely on this issue, of all things, reveals the weakness of the French nuclear industry. With an ageing nuclear fleet and shut- downs during periods of drought, France has run into rough waters and is looking for financial support. Contrary to what is often rumoured, these debates at the EU level are not about dictating the energy mix of the Member States. Those who want to continue rely- ing on nuclear energy can do so. Moreover, many of the currently loudly announced projects will not be realised anyway. In practice, the nuclear revival looks rather mea- gre - considerable delays during the construction phase and massive cost increases were the rule rather than the exception for the reactors that were connected to the network in Europe in recent years. What is crucial is the question of financing. Member States are bound by the EU’s jointly agreed climate targets. Nuclear en- ergy does indeed have a lower CO2 footprint than fossil fuels such as coal, oil or gas. Unfortunately, low-CO2 power plants that will be connected to the grid in 20 years are of little use in the challenging next ten to 15 years. Consequently, such projects cannot be financed through the relevant European pots that have been set up for the energy transition. These funds are needed for the expansion of renewables and the development of complementary technologies such as storage and smart grids. These enable the energy transition now and not at some time in the distant future. The existing EU funds are nowhere near sufficient to make bets on the future. However, debates on this issue are likely to increase in the future. The feared revival of coal, on the other hand, has largely failed to materialise in Europe. It is true that more and more coal-fired power plants had to be put back into commission and governments of some Mem- ber States are seeking to postpone the date for the final coal phase-out. But this question is by no means only politically influenced, as a rising CO2 price and the com- petitive advantages of renewables will make adherence to the latest possible phase-out date obsolete. However, a look at the rest of the world is worrying in terms of investments in fossil energies, and the Europe- ans are also playing an inglorious role here. In an effort to find a quick replacement for Russian energy supplies, agreements have been made with alternative states for the supply of oil and gas and investment commitments have even been made for the development of new pro- duction sites, for example in Africa or Latin America. Fossil fuel corporations are experiencing a bonanza that seemed unthinkable only a short time ago. Quo vadis, European industry? The spectre of de-industrialisation is haunting Europe. Trade unions and industry associations fear a loss of competitiveness and the jobs associated with domestic production. But in retrospect, 2023 may prove to have been the very moment when European industrial policy