The Guardian view on Merz and Meloni: an emerging Berlin-Rome axis is threatening the EU’s green deal | Editorial

WWhen the European Union launched its Green Deal in 2019, enshrining into law the goal of climate neutrality by mid-century, it demonstrated strategic foresight as well as global leadership. Russia’s war in Ukraine has clearly underlined how much the continent’s energy security – and future prosperity – depends on a shift away from fossil fuels. However, in recent times, the environmental approach of European leaders seems to echo the plea of ​​St. Augustine’s youth for chastity: make us greener, but not yet.

The recent European industry summit in Antwerp made headlines in an unusual way thanks to Sir Jim Ratcliffe’s xenophobic outbursts on immigration. But he also distinguished himself with fierce attacks on one of the most important pillars of EU environmental policy. The bloc’s Emissions Trading System (ETS) – which makes polluters pay for the CO2 they emit – has achieved spectacular results in reducing overall emissions since 2005 and encouraging green innovation. Worryingly, German Chancellor Friedrich Merz appeared to sympathize with demands from Sir Jim and other CEOs for a radical relaxation of the rules.

There will be many more to come. Alongside Italy’s far-right Prime Minister Giorgia Meloni, Mr Merz is championing a deregulatory approach to generating growth that risks hampering Europe’s climate ambitions. Ms. Meloni has long denounced what she describes as “green madness” imposed by Brussels. It has acquired a powerful ally in the person of Mr. Merz, an economic liberal instinctively hostile to regulation.

The Berlin-Rome axis has already succeeded in diluting plans to ban the sale of new gasoline and diesel vehicles by 2035. European leaders also voted to reduce overall greenhouse gas reduction targets by 2040. Rules for corporate sustainability reporting have been watered down. Italian-German calls for greater flexibility in meeting decarbonization targets, and attacks on regulatory systems such as the ETS, have the potential to allow large-scale change from net zero targets.

This is a disastrous vision from an economic and environmental point of view. When the Green Deal was launched, it was rightly seen as a way to encourage the changes needed to make economies competitive in an era without fossil fuels. Chinese competition has underlined the importance of moving more quickly in this direction. Instead, the growing influence of right-wing populism across the continent is leading to a new consensus of slowness.

As former European Central Bank President Mario Draghi has argued, the real path to future competitiveness lies in sustained investment, partly financed by joint EU borrowing, and incorporating a bold green industrial strategy. Mr Merz is right to suggest that, in some areas, simplifying bureaucratic hurdles could be beneficial for growth. But blind faith in deregulation and capitulation to corporate lobbying on environmental rules by the likes of Sir Jim is not a strategy far from fit for the times, ethically or economically.

Given Donald Trump’s continued determination to undermine international attempts to combat global warming, Europe’s role as a climate leader is more vital than ever. It is also necessary to develop an industrial vision that guarantees the prosperity and security of the continent in the long term. As Mr Merz and Ms Meloni maneuver, it is time for the defenders of the EU Green Deal to stand up and be counted.