Commission gives green focus to industrial policy

The Commission has renewed its pledge to help European industries face the pressures of globalisation and climate change but stressed that it would not shift towards a more interventionist policy, in an apparent reply to comments by French President Nicolas Sarkozy.

One of the greatest hurdles faced by industry today is adapting to the challenges posed by climate change, such as the need to cut carbon emissions and improve energy efficiency, said Industry Commissioner Günter Verheugen on 4 July 2007. 

Presenting a mid-term review of the Union’s October 2005 industrial policy (EURACTIV 5/10/05), he stressed that businesses should not view Europe’s climate change policies as a threat to their competitiveness, but rather, they should focus on grasping “the opportunities of new low-energy and resource saving processes and products”. 

Protectionism, said the Commission is not a solution. “There is no need for a fundamental change of proactive and non-interventionist industry policy at EU level,” stressed the EU executive. 

The remark could be taken as a reply to comments from French President Nicolas Sarkozy last week, when he called for EU leaders come up with an industrial policy to protect “European champion” companies such as Airbus, adding that Europe should only open up its markets once others have opened theirs. “Do you want us to open our markets, well, we will open them the minute you open yours,” he said in a speech at the Paris Air show. 

The Commission however, says it will focus on improving access to external markets rather than shutting itself off from outside competition. 

It nevertheless acknowledges that, as the EU takes the world lead in the battle against climate change, energy-intensive industries in Europe could see their competitive position suffer. 

To address this, Verheugen said the Commission will present a policy document this autumn that will examine “policies to support energy intensive industries reducing their environmental impact whilst staying competitive”. 

It will also continue to encourage climate change policies in partner nations, such as the US, China, Russia and India, through trade policy in order to create a “global approach to climate change” that will create further opportunities for innovative green products from the EU. 

The Commission added that the absence of an internal market in environmental products is currently “limiting the market size for low-carbon and resource-efficient products” and promised an Action Plan to remedy this situation in 2008. 

Aside from this, the EU’s industrial policy will continue to focus on cutting administrative burden for enterprises, improving the EU’s intellectual property framework to encourage research and innovation, and promoting clusters and “lead markets” to enhance cooperation between business, research and consumers. 

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