For a European Industrial Renaissance COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS State of play Jesús Barreiro-Hurlé DG Enterprise and Industry European Commission Social Dialogue in the EU Food and Drink Industry Brussels 17 October 2014

Europe needs a strong industry Industry is the biggest source of technological innovation (we need to solve big societal issues like transport, emissions, energy, health) Industry is a driver of productivity (industrial productivity increases faster than in services, but also a driver through innovation in the equipment and goods it produces for service sectors) Industry accounts for 80% of the EU's exports

Growth remains a top priority GDP growth (%) Source: Eurostat EU Manufacturing output Source: Eurostat

Food industry a strong performer

The communication Pursues an integrated industrial policy approach Sets key priorities for industrial policy, actions already undertaken, and a limited number of new actions Recognises the central importance of industry to create jobs and growth Endorses reindustrialisation as an objective Ultimate objective of the policy: Increase the competitiveness of EU industry and create a strong industrial base in the EU

Key priorities The communication Mainstream industrial competitiveness Use financial resources at our disposal Provide more business friendly environment Ease access to production inputs Maximise potential of EU's internal market Integrate EU firms in global markets Facilitate mobility via education and training

Our objective Our mandate Our current priories After the European Council Our objective "Europe needs a strong and competitive industrial base, in terms of both production and investment, as the key driver for economic growth and jobs". Our mandate "The Commission is invited to present a roadmap for taking work forward on this basis." Our current priories Continued implementation of actions announced in 2012 and 2014 Industrial Policy Communications Develop forward-looking Roadmap requested by the EC Competitiveness dimension of the Europe 2020 Review The March European Council has given us a very clear and important message: Europe needs a strong industrial base. Europe has delivered in the past many elements that have contributed to improving our industrial potential. The single market for goods has been our major contribution. However, experience has shown that this is not sufficient to create an industrial system capable delivering high growth rates of industrial competitiveness. Since 2010, we are implementing an integrated industrial policy creating new mechanisms and structures to permanently reinforce the EU’s industrial base, as requested by the European Council last March. Building up and completing this European industrial system is not a one-off task. Our industrial policy has clear long term objectives and instrument but it is evolving and adapted to the needs of industry and the overall economic conditions. In Spring 2015, after the review of the 2020 Strategy, we will have to re-evaluate the situation. However, at present, our top priority is very clear: We must roll out and implement the measures included in our communications, and in particular those underlined in the European Council Conclusions. This will be done following a scheduled to be presented in the Roadmap that the European Council requested for March 2015, that will have to be discussed by the Competitiveness Council in due time to meet this deadline.

Industrial Policy: One target, four pillars. 20% of EU GDP in industry by 2020. A growth-friendly administration Access to Market 4 pillars Access to inputs Innovation

1. Access to markets Lines of action - 1 Internal market Completing the Internal Market Eliminating barriers for integration of business services Digital Internal Market Building up an internal market for the XXI Century Access to International Markets Transatlantic Trade & Investment Partnership (TTIP) Building up on Missions for Growth Internationalisation of SMEs

2. Access to resources Lines of action - 2 Access to finance: Rolling out the new instruments, diversification of the financing sources, sector of activity specific EIB instruments Skills: STEM objectives, fostering dual system, Joint actions (Erasmus+) Access to raw materials: Implementation of raw materials strategy, "circular economy" strategy Affordable energy: Infrastructures, internal market for energy, research on energy efficiency.

3. Smart industry and innovation Lines of action - 3 3. Smart industry and innovation Implement recommendations task forces in six priority areas in line with the 2012 and 2014 Communications (Advanced Manufacturing, KETs, Bio-based, Clean vehicles/vessels, Construction and raw materials, Smart Grids and digital) Take steps to involve industry in Smart Specialisation strategies by facilitating collaboration between industry and regions Set-up public-private partnerships in key technological domains to leverage Horizon 2020 funding Strengthen support for cluster policy with an emphasis on inter regional linkages

4. Creating a business friendly environment for SME growth Lines of action - 4 4. Creating a business friendly environment for SME growth Improving the regulatory environment for business: Small Business Act Upgrade the European Enterprise Network Measures to foster entrepreneurship: venture capital, consult schemes Fostering SME growth Integrated EU strategy on SME internationalisation Foster the integration of SMEs in international value chains SME support in global markets for the protection of IPRs

Mainstreaming of competitiveness Improved policy making - 1 Mainstreaming of competitiveness Already underway inside the Commission, e.g.: Tools: Development of suitable instruments: Competitiveness proofing, fitness checks Policies: State aid modernisation - Cohesion policy More work remains to be done: Systematic assessment of competitiveness impacts across policy areas and improving the analysis and knowledge base (e.g. competitiveness observatory) Upstream co-operation and impact assessments

Building a partnership with Member States and Regions Improved policy making - 2 Building a partnership with Member States and Regions Co-ordinated approach needed between EU, MS and regions: ownership and regular monitoring of industrial policy needed from COMPET Council Assessing the efficiency of mechanisms to ensure that decision-making and implementation of industrial policy at regional, national and EU level is mutually reinforcing

Thank you! More information: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/index_en.htm