EU ministers agree on the chips act and protection of the know-how of traditional producers

"Today we have successfully concluded the topic of competitiveness, the internal market, research and innovation and industry. During our Presidency, we focused in particular on strengthening the resilience of the internal market in the context of the Russian aggression in Ukraine. We have managed to strengthen the EU economy, thanks to which we are now better prepared for crises than ever before," said Minister of Industry and Trade Jozef Síkela.

EU ministers have reached agreement on a general approach to the chips act. This will substantially increase the resilience of EU industry by ensuring a stable supply of chips to businesses. "Over the past year, the supply of chips has been disrupted in Europe, threatening the automotive, energy, and healthcare sectors, as well as strategic sectors such as defence, security and space technology," said Minister Síkela, adding: "The European Union wants to be one of the industry leaders in the chip market in the future." The ambition is to more than double its current share of the global production of state-of-the-art and sustainable semiconductors to 20% of the market by 2030. The aim is not only to reduce dependency but also to seize economic opportunities, as the global semiconductor market is expected to double by the end of the decade.

The chips act, which is one of the priorities of the Czech Presidency, pursues the objectives of the New Industrial Strategy and the Digital Compass 2030, aims to address the shortage of semiconductors for the EU industry and to ensure the future technological sovereignty of the EU. The aim is to reduce the vulnerability of Member States caused by the disruption of one of the most important supply chains. The chips act targets investment in R&D, support for pilot lines, promotion and facilitation of the construction of production capacities, including design centres in the EU, and the establishment of a coordination mechanism between Member States and the European Commission to monitor semiconductors.

⚙ #COMPET Internal Market and Industry | Minister @JozefSikela handed over the presidency to his Swedish counterpart @BuschEbba.

Lycka till, Sverige!

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- EU2022_CZ (@EU2022_CZ) December 1, 2022

Another key point was the regulation on the protection of geographical indications for craft and industrial products. The regulation is intended to improve the protection of craft and industrial products protected by geographical indications at EU level, which will bring many benefits and contribute to the recovery of the European economy. "The proposal aims to encourage innovation and investment in craft production. We want to help craft producers, especially SMEs, to promote their products and protect their traditional know-how," said Minister Síkela.

The ministers also agreed on a draft directive on corporate sustainability due diligence. The directive, which is the responsibility of the Ministry of Justice, will be an important tool for setting common standards on issues of human rights violations and social and environmental obligations by companies. The Directive sets out a horizontal framework that will encourage businesses operating in the internal market to contribute to achieving the transition to a climate-neutral and green economy in line with the Green Deal and the UN Sustainable Development Goals. The Directive will also guarantee uniform and transparent rules for businesses across the internal market, thus avoiding fragmentation.

Last but not least, ministers discussed the 2022 report of the Single Market Enforcement Taskforce (SMET). Ministers praised the contribution of the SMET in removing obstacles to doing business in the internal market, in particular in areas such as the posting of workers or the deployment and construction of renewable energy sources.

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