Brussels, 12/10/2012 (Agence Europe) - Faced by the free trade countries with the United Kingdom and Sweden to the fore, the EU founder member countries (except for the Netherlands), which are supported by the southern countries and some of the new members, are demanding better protection for European industry and discussion on the European state aid framework by the Commission.
Unveiled the previous day by Commissioner Antonio Tajani, the Commission's communication updating 2010 strategy for EU industrial policy (see EUROPE 10707) received clear support from the capitals during the Competitiveness Council in Luxembourg on Thursday 11 October. His determined tone when speaking of bringing industry's share in European GDP to 20% by 2020, as it has fallen to 16% since the crisis, partially met the expectations of Germany, Spain, France, Italy, Luxembourg, Portugal and Romania which, supported by Belgium, demonstrated their disarray early October before the loss of momentum in European industry that is being injured by competition from trading partners that receive more protection from their public authorities. “Since 2008, 10% of industrial jobs in Europe have been lost. Europe's share in world exports decreased from 45% to 40% between 2006 and 2010”, states a joint letter from the economy and industry ministers, addressed to Commissioner Tajani and their Cypriot counterpart, Neoklis Sylikiotis. “Europe has to react accordingly and take adequate measures commensurate with the situation, just as the United States and all other world industrial powers have done. All possibilities which could result in growth recovery and job creation in Europe must be explored. (…) We must now focus on an ambitious review of our industrial policy”, they stress.
In addition to a change of method, including more frequent meetings of the Competitiveness Council to cover in greater detail the ills of the real economy - in relation to industry, trade unions, workers, SMEs, clusters, new technologies - and examine the industrial issues on a sector-by-sector basis, beginning with the motor industry, steel and the digital economy, the seven ministers who signed the letter want all EU policies to be reviewed, including single market rules, competition policy, trade policy, environmental policy, innovation and research policy, cohesion policy, energy and also the European framework for state aid and the impact that subsidies to third countries will have on EU industry. “We need to make sure that our companies are not at a disadvantage in relation to their international competitors”, they say.
The Competitiveness Council of 11 October served as a mouth piece for the ministers. On Thursday, the seven ministers and Belgium were joined by Austria, Bulgaria, Greece, Hungary, Slovenia and Slovakia, in calling for a policy debate in December on state aid for innovative technology. (EH/transl.jl)