Europe's international competitiveness is weakening, the Commission said in a policy paper outlining its future intentions on industrial policy.
Despite nascent signs of recovery in most sectors and nations, the number of manufacturing jobs fell by more than 4% in the second quarter compared to a year ago.
Europe's international competitiveness is weakening, the Commission said in a policy paper outlining its future intentions on industrial policy.
Despite nascent signs of recovery in most sectors and nations, the number of manufacturing jobs fell by more than 4% in the second quarter compared to a year ago.
"Europe needs to give itself a new model for growth that is founded on the industrial sector," said Antonio Tajani, commissioner for industry and entrepreneurship, presenting his initiative yesterday.
The automotive business is not expected to return to pre-crisis levels until 2014, and auto parts suppliers are bracing for a painful wave of consolidation. There is no sign of recovery in the construction industry, particularly in Spain, Romania and the Netherlands. And tight-fisted lenders are squeezing small pharmaceutical and biotech companies, according to Eurostat data.
There are a few bright spots, notably steelmakers and shipbuilders. Textilemakers also are slowly turning up the speed. All thanks largely to strong orders from overseas.
But overall, the industrial recovery has slowed in recent months.
"What we're trying to do here is have a tangible response," Tajani said. "A new boost to our industrial policy."
Moving away from R&D focus
The plans appear to be a reversal of the Commission's strategy in the late 1990s, which focused on research and development and marketing.
Thursday's proposal is one of the seven flagship initiatives in the Union's 2020 strategy for jobs and growth. Called 'An industrial policy for the globalisation era,' the communication outlines the Commission's plans to improve the business environment, especially for small- and medium-sized enterprises (SMEs).
In total, an estimated five million manufacturing jobs could be created over the next decade; three million in SMEs.
Highlights of the proposal include:
- "Competitiveness proofing" of new legislation. The impact on competitiveness of all policy proposals will be properly analysed and taken into account.
- "Fitness checks" of existing legislation will focus on reducing the cumulative effects of legislation so as to cut the costs for businesses in Europe.
- An annual report on member states' competitiveness, industrial policies and performances.
- A new strategy on raw materials will be presented before the end of the year.
- Early next year, there will be a proposal to promote common EU standards.
- Before future trade agreements are signed, they will be analysed to assess their impact on competitiveness.
Mixed response
Tajani said his proposal would not replace the industrial policies of member countries, but rather provide better coordination.
"Europe has to show itself united if it's to compete," he said.
But German MEP Bernd Lange (Socialists & Democrats), author of a European Parliament report on the issue, said the proposal "falls short in addressing key issues," including the consequences of policies in trade, environment and structural policy on industry in Europe.
Nevertheless, business groups seemed largely in favour.
"This initiative must now be given concrete follow-up," said Philippe de Buck, director-general of BusinessEurope, a trade association representing large companies.
Tajani said the ''competitiveness proofing'' would begin almost immediately, and he would be travelling to national capitals to promote the proposed legislation.
