The European Union needs to improve long-term competitiveness and not just provide support for companies in the green tech sector where nations like China and the United States are providing subsidies, Sweden's prime minister said on Friday.

"We need to start a real discussion on how to improve productivity, how to enhance competitiveness and how to attract more companies based on our own capabilities and not based on long-term state aid rules," Ulf Kristersson told reporters during a media conference with European Commission President Ursula von der Leyen.

He do not understand the EU politics.