1. Increasing EU industrial competitiveness James Watson, Director Economics Bucharest, 23 October2014

2. Who we are?  41 members in 35 countries  Representing small, medium and large companies  European social partner  Staff: about 50 persons  Supporting network of +50 companies (AS Group) 2

3. Industry as backbone of the economy Direct and indirect employment in the manufacturing sector (2012) in 1000 Source: Eurostat (2013), WIOD (2013), calculations by IW

4. EU is losing global manufacturing share Share of global manufacturing value-added Source: UN (2013), OECD (2013), Eurostat (2013), calculations by IW

5. Manufacturing and Employment well below pre-crisis levels

6. Recommendations for an industrial compact ECONOMYENERGY AND CLIMATE SINGLE MARKETEMPLOYMENT ENTREPREN- EUSHIP TRADE Industrial competitiveness throughout all policy areas

7. Economy  growth and structural reforms – better implementation of EU reform recommendations  sustainable public finances  access to finance for companies

8. Employment  flexicurity reforms on labour markets  education and training  sustainable pensions  Economic migration

9. Single Market  removing barriers  effective enforcement  fostering greater support of public opinion  digital Europe

10. Trade  WTO negotiations  Bilateral free-trade agreement  Transatlantic relations  Economic dimension of EU foreign policy

11. Conclusions – the EU can support Romanian industrial competitiveness Advocate for competitiveness enhancing structural reform Structural funds Access to the internal market Access to international markets