EU leaders have been cautioned against retreating from environmental goals ahead of a summit focused on revitalizing the bloc’s sluggish economy.
Campaigners from the Climate Action Network, a coalition of NGOs across Europe, acknowledged that European industry faces “real pressure” from high energy costs, aging infrastructure, global overcapacity, and delayed investments. However, they argued that weakening climate and environmental policies is not the solution. “Deregulation is not an industrial strategy,” the group stated in an open letter. They contended that challenges for sectors like steel, cement, and chemicals stem from fossil fuel energy prices and global market forces, not from environmental rules.
The EU economy has faced strain over the past year amid trade tensions and tariffs from the U.S. under Donald Trump. Last week, European Central Bank President Christine Lagarde noted that the eurozone economy “remains resilient in a challenging environment,” but described the outlook as “uncertain” as interest rates were left unchanged.
EU leaders will gather at a chateau in eastern Belgium on Thursday to discuss the “urgent strategic imperative” of strengthening the single market, according to an invitation from European Council President António Costa. A day earlier, European Commission President Ursula von der Leyen will meet with industry leaders in Antwerp.
This follows a 2024 summit in the same city where business leaders called for a European industrial deal to complement the EU’s Green Deal, along with “corrective measures” to existing regulations. In response, von der Leyen’s Commission has proposed ten broad measures to ease regulations across various sectors, from automotive and digital to defense, chemicals, and farming.
Environmental campaigners warn that this deregulation push could undermine the EU’s carbon pricing and other policies supporting the shift to clean energy. Their letter argues that without a strong and predictable carbon price, the economic rationale for clean steel, green chemicals, recycled materials, and electrified production collapses—along with the effectiveness of future industrial policies.
A think tank report indicates Europe is progressing slowly in efforts to revive its weak economy. The European Policy Innovation Council found that only 15% of the recommendations from a major 2024 report by former Italian Prime Minister and ECB President Mario Draghi have been implemented. Nearly two-thirds are either still in progress or not yet started, according to the Financial Times, which reviewed the analysis.
Draghi’s report outlined 383 recommendations for EU institutions and member states, warning that without measures like an annual €800 billion investment push, the EU faces a “slow and agonising decline.”
In response to the EPIC report, the centrist Renew group in the European Parliament expressed concern over the slow implementation of Draghi’s agenda. They pointed to internal barriers within the EU single market, citing IMF research that equates EU regulatory hurdles to a 44% tariff on goods and 110% on services. “While we are rightly horrified by the prospects of new US tariffs, we seem to be strangely complacent about the ‘internal tariffs’ we self-inflict,” the group stated. “We are in effect sanctioning our own economy.”
To help stimulate Europe’s stagnant economy, the Commission plans to introduce an Industrial Accelerator Act in the coming weeks. This is expected to include proposals to promote clean technology and introduce a “buy European” preference in strategic sectors.
Frequently Asked Questions
FAQs EU Environmental Goals Economic Concerns
BeginnerLevel Questions
1 What are the EUs main environmental goals
The EU has set ambitious targets known as the European Green Deal to become the worlds first climateneutral continent by 2050 Key goals include cutting greenhouse gas emissions by at least 55 by 2030 boosting renewable energy and protecting biodiversity
2 Why is the EUs economy considered struggling
The EU faces challenges like high energy prices inflation and slower growth compared to other major economies like the US and China Some industries are also finding it expensive to adapt to new environmental regulations which can affect competitiveness in the short term
3 What does it mean to abandon environmental goals for the economy
It means potentially delaying weakening or dropping climate laws and regulations to make it cheaper and easier for businesses to operate in the short term hoping this will spur faster economic growth and investment
4 Who is urging the EU not to abandon these goals
Environmental groups climate scientists many progressive politicians and some business leaders in green technology sectors are urging the EU to stay the course They argue that longterm economic strength depends on leading in sustainable industries
Advanced Practical Questions
5 Can the EU actually have both a strong economy and strict environmental goals
Many experts argue yes through a strategy called the twin transition The idea is to use the green transition itself as an engine for economic growth by creating new jobs in renewable energy electric vehicles and energyefficient technology making Europe a leader in these future markets
6 What are the biggest risks of slowing down the Green Deal
The main risks are
Climate Lockin Remaining dependent on expensive fossil fuel imports
Lost Leadership Falling behind in the global race for green technology letting competitors like the US and China dominate
Higher LongTerm Costs Dealing with more expensive damage from climate change later
7 What are the arguments for relaxing environmental rules right now
Proponents argue that high costs are driving industries and investments out of Europe to places with weaker regulations They say temporary relief is needed to protect jobs ensure energy security and help consumers and businesses with current costofliving pressures
