Is the EU’s Green New Deal about to be killed off and replaced by defense spending?

In 2020, the European parliament lawmakers approved the issuance of legislation for the age of the new green deal. The deal is a package of 150 long -term guidance and legislation that enables the European Union to become a neutral climate by 2050; The European Union is home to 449 million people and is responsible for 6 % of emissions worldwide.

Defenders imagine that these laws will enable the European Union to drive the road in the environment, increase transparency in terms of how to work companies, and allow investors to compare business sustainability on a similar basis.

Many Fortune 500 Europe supports initiatives shown in the new green deal. Iberdrola, a global energy company, aims to have net zero emissions before 2040, and Volkswagen, the third largest electric vehicle manufacturing company in the world, aimed at being a carbon neutral by 2050.

Why is there a retreat from a new green deal?

President Trump’s campaign of efficiency prompted some politicians to demand that the European Union government be smaller and more efficient.

More importantly, American policies make the European Union nervous in terms of competitiveness. If only the European Union governments do not ask that companies work more sustainable, they start from this, then this will leave the European Union’s economy. For example, the European Union has issued 13,000 sustainability laws since 2019 compared to 3,500 pieces of legislation and 2000 decisions at the US federal level. Central business owners are explicit about the additional paperwork needed to comply with new legislation.

With the imminent influence of Trump’s definitions, the economic strains of the European economy are increasing demands to cancel regulatory restrictions, and the unlikely allies have appeared throughout Europe from the far right, conservatives, and central business owners, all of whom wonder whether the new green deal should not be reduced.

Some companies have already taken measures. Equinor, an energy company and the largest oil producer on the Norwegian continental shelf, pledged to be zero by 2050 by investing in renewable energy sources. However, in February, the company announced plans in the next two years to half a renewed investment from 10 billion dollars to 5 billion dollars and increased oil and gas production by 10 %.

In France, with the potential embargo of Parin Le Pen of the presidential election, this may be a time for Jordan Barilla, who some see her natural heir, to come to himself. In January, Bardela, the president of the right -wing extremist patriots in the European Parliament of Europe, called for the killing of the deal, saying it was a “restriction on economic growth” and a threat to French workers.

While the impact on business will be huge, many companies urge the European Union to adhere to the obligations. At the end of last year, 60 European companies and 180 civil society organizations, including IKEA and Westlé, issued a joint statement to urge the European Union to continue its green convictions.

The World Nature Fund has indicated several ways by the European Union to cancel its obligations. In October, the European Council suggested a delay by 12 months to implement the regulation of products that are free from the removal of forests in the European Union, and the European Council stopped to a legal proposal coming for sustainable diets.

In April, the European Union Council voted to delay two important groups of legislation, direct reporting of the sustainability of companies (CSRD) and direct the care for the sustainability of companies (CSDD). Both apply large restrictions and a red tape to European companies because they are forcing companies to spread sustainability data on everything from emissions, water use, chemical leaks, and the effect of changing climate on employee working conditions. The same will be true for their suppliers. The delay will be for two years.

Likewise, the GDP law on Europe – the General Data Protection Law – appears to be like the European ax. The tremendous law, which was submitted seven years ago, forces competing companies in Europe to manage customer data. Now, there are fears that some of this frame will be cut as well. Something is called Politico “Red Ribbon Fire”.

It is also true that most of the European Union governments have escaped environmental thunderbolt and are more looking to rearm. With calls to quickly increase defense budgets, the European Union unveiled 800 billion euros (866 billion dollars) in European military spending in March.

Increased defense budgets in the European Union have an economic aspect

European countries have not yet taken a conclusive decision on whether the European ground forces will be submitted in Ukraine, but more military spending is coming. The newly formed German government agreed that military spending is outside the constitutional borders on debt spending.

like Le Monde Countries are likely to be the most important effect on how European Union countries spend money. A lot of combined joint financing has been wasted due to inefficiency. European armies are working on many types of warships and various aircraft, making joint operations and purchase difficult. The white paper in the last European Union has identified a lot of this thinking about defense.

The move towards re -arms is not necessarily bad news of the economy. If Europe is mobilized, as planned, between 500 euros and 800 billion euros by 2030, some believe that it can increase GDP by 1.5 points. However, the effect on carbon emissions in the European Union may be completely radical.

This story was originally shown on Fortune.com

2025-04-15 05:00:00