Brussels, 20/02/2014 (Agence Europe) - The member states are broadly in agreement with the Commission's strategy for strengthening the EU's industrial base many want greater flexibility on state aid. The question of energy costs and prices needs to be treated urgently.
During a policy debate on industrial competitiveness on the basis of the Commission communication calling for an industrial renaissance, adopted in January (see EUROPE 11002) and ahead of the forthcoming European Council on 20-21 March, European ministers responsible for industry meeting in Brussels on 20 February were generally behind the objectives and priorities put forward by the European Commission. Summing up the discussions, the Greek Presidency said that there had been an 80% “meeting of minds”. Many member states agree with the re-industrialisation objective proposed by the Commission of bringing the manufacturing sector's share of GDP up to 20%. The United Kingdom, however, described this objective as “artificial”.
This debate was conducted in light of the new climate and energy action framework up to 2030 and the European energy prices and costs study that was unveiled by the Commission in January (see EUROPE 11002), which saw the EU 28 reach broad consensus on the need to incorporate industrial competitiveness concerns in all appropriate policies: environment, climate, energy, trade, competition, state aid and regional policy, which also have to be better coordinated. In this context, the need to enhance the horizontal role of the Competitiveness Council was reiterated, with Arnaud Montebourg of France arguing that it should be “more political”.
Energy prices and costs, as well as the need for a single energy market were presented being among the most important factors affecting industrial competitiveness. All the delegations highlighted this aspect. Energy prices have to be treated as “an urgent issue”, summed up the Greek Presidency. France and many other member states made the connection between this chapter and the guidelines on state aid for energy and the environment, which the Commission is seeking to approve on 9 April, so that they can enter into force in July. Several member states called for greater flexibility on the state aid that they would like to allocate to major energy- intensive industries. Several member states underlined the need for a more balanced approach to industrial, energy and climate policies in the EU and the importance of uninterrupted supply in raw materials at affordable prices for European industrial competitiveness.
The other priorities highlighted by ministers were resumed in a speech made by Italy, which was described as being “very structured” by one Community source and which insisted on the “3-i” approach: internal market, interconnection and innovation. On Thursday, the EU28 agreed on the importance of optimising the internal market's products, capital and services potential. The delegations also agreed on the idea of earmarking and rationalising all available funding, including structural funding, to stimulate investment in innovation and improving skill sets. In this context, they highlighted the important contribution made by smart specialisation in enhancing the specific growth potential link to the innovation of the European regions. Many states also underlined support to SMEs through improving the regulatory framework and access to finance. Several member states spoke of the need for a harmonised approach towards industrial challenges, mainly focusing on the creation of appropriate key conditions for all industrial sectors. The role of clusters and innovative SMEs and the development of the single digital market were also mentioned. Finally, the debates again highlighted the need for EU companies to have access to global markets by concluding free-trade agreements. (EH/transl.fl)