Brussels, 10/10/2012 (Agence Europe) - Expressing alarm at the relative decline of the role of European industry, the European executive has proposed immediate measures to increase the share of the secondary sector in EU GDP from less than 16% today to 20% by 2020.
3 million jobs lost. Although it still occupies a dominant position at a global level in a number of strategic sectors such as car building, aeronautical, engineering, space, chemical and pharmaceutical products, although it is behind 80% of the exports of the EU and stimulates 80% of private sector investment in R&D, European industry is suffering. Since the start of the crisis, more than three million industrial jobs have been lost in the EU.
Innovation, slow convergence between 27. This alarming observation is confirmed by the 2012 scoreboard on industrial performances in the 27 Member States, which was presented by Commissioner Antonio Tajani on Wednesday 10 October. Scrutinising the national results for the productivity of the manufacturing industry, export, innovation and sustainable development, the environment and company infrastructure, funding and investment, the Commission's report shows a mixed view of European industry. Despite major increases in energy efficiency and a strong capacity to attract foreign investment, the EU is suffering from an industrial performance which is imbalanced between its member states. Although many of them have made satisfactory progress in terms of sustainability, support for SMEs and public administration reform, although the EU is experiencing a general positive tendency in its transition towards a more knowledge-based economy, increased work productivity and highly qualified labour, the convergence between more or less innovative countries seems to have slowed down in recent years. Major challenges remain in the promotion of private R&D and boosting competition in the network industries. Access to funding has grown worse in most member states.
Internal demand in decline. Analysing the costs and advantages resulting from the globalisation under way over the last 15 years, the 2012 report on European competitiveness concludes that the drop in internal demand in the EU for industrial products cannot be totally offset by the demand from third countries, gains in energy efficiency on the part of the EU and its ability to attract foreign investment. The Commission argues that market uncertainty, financing problems, poor demand and a lack of skills have led to a loss of confidence, which has in turn led to an investment shortfall and job losses in industry.
20% target. In order to breathe new life into a sector which is suffering but which shows vast potential, the European executive is proposing four areas to increase the coordination of the member states to reinforce the industrial policy of the EU and see a return to pre-crisis levels, when industry still accounted for 20% of GDP. First of all, massive investments are required in six sectors of extremely high potential: advanced technologies for own production, private cars, green vehicles, bio-products, key generic technologies, construction and raw materials, and intelligent networks. The Commission also hopes to guarantee better market conditions for the European industry, both at internal market level and on third-country markets. The third pillar of the strategy is that of improving access to funding and capital by making public resources available more efficiently, including those of the EIB (which is expected to allocate between €10 and €15 billion to additional loans to SMEs) and the structural funds, by making private funds available by removing obstacles to venture capital funds. Lastly, the European executives recommends investment in human capital and skills; in this area, the Commission will, in particular, take steps to promote cooperation between employers, workers and the authorities concerned by the creation of European councils and sectorial alliances for skills.
Control parameters. In order to ensure the correct implementation of these actions, the Commission will be keeping a very close eye on the development of essential parameters. On the one hand, investment, which fell from 21.3% to 18.6% of GDP between 2007 and 2011, a figure it wishes to raise to 23% by 2020. Currently located at between 6% and 7% of GDP, investment in equipment is expected to make steady progress above the 9% of GDP mark in 2020. The European executive also wishes to increase the trade in goods in a re-dynamised internal market from 21% to 25%. Lastly, the Commission wants the proportion of SMEs offering online sales to reach a level of 33% by 2015.
Reciprocity. Seven Member States - Germany, France, Spain, Italy, Luxembourg, Portugal and Romania - pleaded this week, in a letter to Commissioner Tajani and the Cypriot Presidency, in favour of an ambitious revision of the industrial policy, for example for trade policy and State aid policy to take greater account of the interests of European industry. Reciprocity must become the rule with third countries, they stress. (EH/transl.fl)