EU Green Deal will involve greater state regulation

Subject

European Green Deal.

Significance

The European Green Deal seeks to transform the EU to a low-carbon economy. It proposes radical change in the way goods and services are produced and consumed. While based on a level playing field for all actors within the EU, it implies much greater state regulation of economic and social activities with the aim of achieving net zero greenhouse gas (GHG) emissions by 2050.

Impacts

• The Green Deal’s adoption would increase the likelihood of environmental criteria becoming more prominent in trade policy.
• The mobilisation of additional public sector funds implies rising debt levels on top of the expenditure relating to COVID-19.
• COVID-19 will delay EU and member state scrutiny and ratification of the Green Deal components.