Europe's Chemical Industry Faces Crisis and Job Losses
Europe's chemical industry is facing a significant crisis, with 21 major sites announcing closures since 2023 and 30,000 jobs already lost, potentially risking up to 200,000 jobs in the next five years without decisive action. In response, industriAll Europe will convene a Chemical Workers’ Emergency Summit to launch a declaration aimed at prioritizing workers and production in the region's industrial strategy, calling for immediate actions including securing affordable energy and boosting demand for European-made chemicals. The European Commission's Critical Chemicals Alliance aims to coordinate efforts among stakeholders to safeguard critical chemical productions and mitigate job losses.
European Commission to Introduce Digital Networks Act
The European Commission is set to unveil the Digital Networks Act on January 20, which proposes significant changes to telecom regulations, including potentially granting telecom providers indefinite access to radio spectrum to encourage investment in digital infrastructure. Notably, the draft omits the controversial 'fair share' clause that would have required large content providers like Netflix and Google to contribute to network costs, a move likely to disappoint European network operators who argue they are unfairly burdened by high traffic demands. The act aims to strengthen Europe's telecommunications market and enhance its competitiveness against U.S. and Asian firms.
Germany's economy shows first growth since 2022
Germany's economy has recorded growth for the first time since 2022, according to projections from the Bundesbank, indicating a slow recovery from a prolonged recession. Chancellor Friedrich Merz acknowledged the challenges ahead, particularly within the struggling auto sector, which is facing a deep crisis, while expressing optimism that government spending will support growth this year.
EU Considers Extending Tariffs to Chinese Hybrid Vehicles
The European Commission is considering extending existing tariffs on Chinese electric vehicles to include hybrid cars, as advocated by Stéphane Séjourné, the EU's industry chief. This potential move comes amid a 155% increase in Chinese hybrid vehicle exports to the EU over the past year, raising concerns about unfair competition due to Chinese subsidies. Current tariffs on electric vehicles, imposed in October 2024, range up to 35.3% and have already strained relations between the EU and China.
Germany gains EU approval for new gas power stations
Germany has secured approval from the European Commission for a plan to construct new gas-fired power stations, allowing for the tendering of 12 gigawatts (GW) of capacity in 2026. This initiative aims to bolster energy security as Germany phases out coal-fired power, with most of the new capacity designed for longer-term electricity generation. The new plants are expected to be operational by 2031 and will have the capability to run on hydrogen by 2045, aligning with Germany's climate neutrality goals.
