An Integrated Industrial Policy for the Globalisation Era

Europe 2020 flagship on industrial policy The European Commission remains committed to the horizontal and rules-based nature of its industrial policy and to avoid a return to selective interventionist and ad-hoc policies. However, for this industrial policy to be effective, account needs to be taken of the specific context of individual sectors and their growth potential and their contribution to coping with societal challenges. Therefore, there is also a need for a strong and tailor-made sector-specific implementation to take into account. The Communication highlights several issues and several sectors that require specific attention, be it energy-intensive industries, space and security industries, eco-technologies, key enabling technologies or health-care and pharmaceuticals industry, the agro-food supply chain or industries critically relying on raw materials. The theme of the initiatives is to stimulate industrial innovation, to create a competitive and fair level-playing field and to trigger the growth potential of a single market of 500 million customers, of more than 200 million well qualified employees and of more than 20 million enterprises. The instruments mainly target risk sharing, transaction-cost reductions and the establishment of a well functioning single market for both traditional and innovative products. At the end of the day, the strategy – and especially its sector-specific initiatives should have helped Europe to deliver the low-carbon and resource-efficient economy and to facilitate restructuring and adjustment. Food products Textiles Pulp and paper Chemicals Europe needs industry … Industry needs Europe Security and space Non-metallic products Electrical engineering Basic metals ... ... ... Machine building Construction Motor vehicles

Importance of industry Manufacturing value chain, including associated business services High industrial productivity creates wealth Manufacturing accounts for 75% of exports and 80% of R&D Industry as solution-provider helping to tackle societal challenges

A fresh approach to Industrial Policy Promoting competitiveness and sustainability Regular reporting competitiveness policies and performance Integrating full range of EU policies Member States: improving the business environment 4

Key actions Improving the business environment Strengthening the Single Market Industrial innovation strategy Promoting Sustainability Facilitating industrial change Capitalising on globalisation Improving sectoral policy frameworks Member State competitiveness 5

Improving the business environment Smart regulation: competitiveness-proofing ex post fitness checks Improving access to finance SME finance Impact of financial reforms 6

Strengthening the Single Market Improving market surveillance Creating a market for business services IPR enforcement Improving infrastructure address transport and energy bottlenecks continue to liberalise energy markets More timely standardisation 7

Industrial innovation policy More timely development and commercialisation of technologies Innovation in traditional manufacturing E-skills for advanced users Encouraging clusters and better cross-border co-operation 8

Promoting sustainability Develop 2050 Low Carbon Roadmap Monitor voluntary industry initiatives Sustainable Industrial Policy: eco-design Eco-innovation Energy-intensive industries 9

Facilitating industrial change Mainly responsibility of social partners Consult on European framework for restructuring Globalisation Adjustment Fund Cohesion policy and Structural Funds Rescue/restructuring Guidelines 10

Capitalising on globalisation Impact assessment of trade negotiation mandates and ex post analysis Pursue market access and close monitoring of partner trade policies International regulatory co-operation Closer relationship with neighbourhood Strategy on access to raw materials 11

Targeted approach to sectors Space policy Clean and energy-efficient vehicles Health and Pharmaceuticals Sustainable construction Bio-based markets Chemicals and construction innovation Cultural and creative industries 12

Member State competitiveness (TFEU, article 173) Annual monitoring of Member State competitiveness and performance Peer reviews and good practice on: Competitiveness-proofing/ smart regulation Small businesses through SBA Access to finance Market surveillance and IPR enforcement Key enabling technologies Environmental technologies

Web links Communication and its accompanying documents: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/index_en.htm Monthly note on the economic recovery: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/documents/index_en.htm#h2-2