The veil is gradually lifting on the European Commission’s industrial strategy, which is due to be presented on 4 March. According to a provisional document consulted by EUROPE on Monday 27 January, the strategy will be deeply marked by the dual challenge of climate change and digital technology. Although many elements remain vague, already known and sometimes even in place, some of the highlights include the development of 6G, the creation of a new Hydrogen Alliance and the installation of one million electric charging stations by the end of the institution’s mandate.
Digital policy – and in particular cybersecurity, artificial intelligence, robotics, critical and cloud-based digital infrastructure, 5G, high-performance computing, the Internet of Things, quantum computing, nanotechnology and microelectronics – is indeed high on the European Commission’s agenda.
The Commission therefore recalls its major draft act on digital services to regulate the role of platforms on the Internet. Scheduled for the end of 2020, it will tackle “the dissemination of illegal content [by setting well-targeted due diligence rules] or lack of transparency [e.g., in the field of online advertising]” (see EUROPE 12364/3). It also reiterates its intention to present, according to the provisional timetable, a white paper on artificial intelligence on 19 February next.
The draft strategy remains fairly general on risky applications, particularly facial recognition. It states that this new framework should “be flexible and allow for future challenges while allowing for horizontal or sector/use-specific rules [including standardisation]”.
The document also takes up the announcement of the President of the Commission, Ursula von der Leyen, to strengthen cyber security in Europe through a common unit within the Commission, more coordination between states and targeted measures, such as revising the remit of the NIS Directive on Network Security (2016/1148) or by providing for specific rules on cybersecurity in vehicles.
For the rest, the Commission intends to accelerate the development of 6G, to promote high-performance computing systems by extending the tasks of the EuroHPC joint initiative and developing an HPC technology value chain, and to coordinate an Alliance on the Internet of Things.
A new Hydrogen Alliance
In connection with the Green Deal, the political marker of the new Commission, the institution is greening the whole industrial strategy. It mentions in particular a new action plan for the circular economy (with new conditions for producing more sustainable products), also in the construction sector, with the much awaited revision of the Construction Products Regulation (see EUROPE 12379/3), as well as multiple actions to support the decarbonisation of carbon-intensive industries, notably in the steel sector.
In this framework, the European Commission, on the basis of the industrial strategy for 2017 (see EUROPE 11861/5), intends to pursue and strengthen trans-European alliances between the public and private sectors in strategic sectors (the so-called Important Projects of Common European Interest – IPCEI).
It thus wants to step up its action in favour of the Battery Alliance (see EUROPE 12315/5), inter alia, by revising the Battery Directive and establishing a new partnership in the framework of the future Horizon Europe Framework Programme. It is also considering the creation of a new alliance to develop clean hydrogen.
Internal Market and SMEs
The Commission also intends to base its industrial strategy on the internal market. To this end, the institution intends to present on the same day an action plan for the implementation of European rules for the internal market by putting an end to the dichotomy between the internal market and the digital market.
The industrial strategy also mentions the key role of SMEs (which will be the subject of a separate strategy to be published the same day) in the European value chain and the need to facilitate their access to finance.
Fair competition
The need to ensure a level playing field is at the heart of the strategy. An entire chapter is dedicated to this issue in the document which, in essence, states that the Commission intends to engage with the entire European economy at international level in order to “[level] the global playing field”.
Thus, European trade policy could acquire new instruments to “[address] the distortions of competition by third countries and companies”, such as an instrument on foreign subsidies (a white paper is expected in spring 2020).
In addition, a carbon adjustment mechanism at the borders could help maintain the competitiveness of EU companies.
Finally, an action plan for the Customs Union will also be tabled, with a view, inter alia, to strengthening customs controls at the borders of the single market, according to the document.
Role of standards
The Commission also intends to defend the EU’s place in the global race for standards. Social, environmental, health and other standards that it intends to impose on the United Kingdom in the forthcoming discussions on a trade agreement with London. It also intends to develop new standards “as a means of boosting competitiveness of EU industry globally”, the document says.
A multi-sectoral approach
The draft strategy also reveals more sectoral projects, such as transport, energy, health and education.
Health. Thus, the Commission announces a new pharmaceutical strategy that will focus on the availability, accessibility and sustainability as well as the security of supply of medicines. It also talks about “supporting codes of conduct for secondary uses of data in health care and access by individuals to their health data”.
Education. The Commission is committed to updating the Digital Literacy Action Plan and the Skills Strategy, which will include an EU Council Recommendation for a policy on lifelong learning (LLL). It is also announcing its intention to explore the idea of “individual learning accounts for working-age people”. Concerning rig workers, the initiative could address working conditions, collective representation and social protection for these workers.
Energy. In the field of energy, the Commission intends to revise the regulations on the Trans-European Transport Network (TEN-T) and the Trans-European Energy Network (TEN-E), with a “mapping” of the infrastructure needs of European networks for the coming decade and a communication on so-called “critical” materials for the EU.
Transport. Similarly, the transport sector is being addressed with a range of actions, including an initiative on electric recharging (rechargeEU initiative), including a target of one million electric terminals by the end of the European Commission’s mandate, and another to develop alternative fuels (refuelEU initiative). In addition, the institution wants to strengthen its action to develop infrastructures on connected mobility.
Space and defence. The Commission also mentions the need to strengthen synergies between space and defence, which are two interdependent sectors – reflected in the creation of the new Directorate-General for Defence Industry and Space (Challenges) – while emphasising the civilian dimension of the European space. (Original version in French by Pascal Hansens, Sophie Petitjean and Hermine Donceel)