The Chancellor's vision. Since April, the German Chancellor, Gerard Schröder, has put forward a certain number of principles that in his opinion, should act as an EU guide for European industry. He points out that industrial activity accounts for 46 million jobs in the Union and calls for the maintaining of a diverse industrial structure across Europe for which he provided the following guidelines (see our bulletin on 30 April p 14): 1) That the European market should be considered as a single market and not 15 separate markets, while respecting national characteristics and traditions; 2) That competition should be taken into account on a world level, including environmental decisions and those relating to competition; 3) That companies should realise that not only do they have a responsibility to shareholders and investors but to workers as well; 4) That "strategic objectives" and Community objectives should be set up for large projects that have a European dimension (such as in the Galileo project). According to the German Chancellor, the notion of "citizens' security" must include economic aspects, as well as limits on work flexibility. He also mentioned the opportunity of precautionary measures with regard to hostile take-overs in order to protect European companies (within reason).
The subjects are relevant but…None of the subjects brought up by the Chancellor are new to Brussels: the Commission has dealt with them and will continue to do so. One only needs to look back at the document on company competition and corporate social responsibility, directives and projects on standards, company law in general, specific analyses of the pharmaceutical sector, chemicals, the aeronautical industry etc. The objective of the Commission's new reflections begun on Wednesday (see this section 6 July) is not to uncover new areas for action nor is it to take new initiatives but rather to pose some questions on the strategic vision and role of industry and coherency between different policies. It is no mystery that Ms Diamantopoulou has found that the Commission's economic initiatives move forward quickly, whereas the social initiatives are met less enthusiastically and, in the opposite direction, certain Commissioners believe that environmental worries are given the Commission's green light to the occasional detriment of industrial concerns.
President Prodi has clearly pointed out his fundamental choice, "Industrial power is the economic basis of the European economy… I have never believed that post-industrial structures can replace industry. The new economy can accompany a strong industrial production structure but it cannot replace it. I am happy that the real economy has rid the ground of a number of past erroneous ideas"
Balance, priorities, coherency. The principle is clear, the difficulty lies in the definition of balance and priorities. Balance lies between environmental demands and industrial competitiveness in the chemical sector. Balance between the power of shareholders and those who manage take-overs. Priorities between certain admissible State Aid (research, innovation) and the need to stop propping up lame duck industries. Balance between "fiscal competition" (tax-breaks to attract investment), the maintaining of traditional activities and working of the land. Limits of flexibility at work. The balance between improving productivity, safeguarding the environment and working conditions.
The European model of society is at stake. Some years ago the very existence of this model was threatened. Today we admit that not only does it exist but that it should also be asserted and defended. Emilio Gabaglio, General Secretary of the European Trade Union Confederation (ETUC) has asked that the Convention on the Future of Europe add an adjective to the objectives of the EU: replacing the "market economy" with the "social economy of the market". It's only a word but it's symbolic.
We can't criticise the Commission and the EU for having neglected these problems, for they are at the centre of the "Lisbon Strategy" and "sustainable development" that the Union has kept to and will attempt to get the rest of the world to accept in Johannesburg in two months time. The Commission must ensure coherency between its different policies: employment, enterprise, competition, environmental, research and innovation policies. (FR)