EU pushes European industrial champions as ETS reforms threaten Czech and German firms

The Economist identifies three businessmen – UniCredit chief Andrea Orcel, French telecom investor Xavier Niel and Czech billionaire Daniel Křetínský – as the core of a proposed "European champion" strategy. Their activities span major cross‑border acquisitions, from Orcel’s bid for Germany’s Commerzbank, Niel’s telecom holdings across Europe, and Křetínský’s investments in energy, retail and media such as France’s Casino group and the UK’s Sainsbury’s. The aim is to build stronger European companies that can compete with U.S. and Chinese rivals.

At the same time, the European Commission has unveiled a draft revision of the EU Emissions Trading System (ETS). The proposal changes the linear reduction factor that determines how quickly the total number of emission permits is cut, seeking a balance between climate ambition and the competitiveness of European industry. The adjustment could raise compliance costs for firms in the Czech Republic and Germany, prompting a heated debate in the EU Council and European Parliament over the risk of de‑industrialisation and the need for cost‑effective decarbonisation.