Download industriAll 11/2013 Twelve demands for a

industriAll 11/2013
Twelve demands for a sustainable industrial policy
(Document adopted by the 2nd Meeting of the industriAll Europe Executive Committee
Brussels, 12-13 June 2013)
IndustriAll Europe welcomes the growing importance of industrial policy in EU policy. The
discussion launched by the EU Commission by including industrial policy as one of its
flagship initiatives in the Europe 2020 strategy has its merits. For industriAll Europe, meeting
the Europe 2020 targets such as an employment level of 75% and investing 3% of Europe’s
GDP in R&D will be crucial in terms of overcoming the economic crisis. The newly introduced
target to raise industrial production to 20% in terms of GDP by 2020 is also welcome. Under
no circumstances should the goal of long-term sustainability be sacrificed for short-term
profits and opportunism.
Industrial policy is not a quick fix but an investment in the future that will pay dividends in
the long-run. The success of industrial policy cannot be measured by the growth of
promising sectors or targets expressed as a percentage of contribution towards GDP alone.
The goal of a European industrial policy should be holistic and be directed towards
safeguarding industrial activities and creating stable high quality employment throughout
sectors while increasing efficiency and sustainability in the process. Existing differences
throughout Europe regarding industrial structures, regional circumstances and the state of
the economy need to be taken into account. It is time for environmental sustainability and
social fairness to be finally recognised as equals to economic cost-efficiency.
Public authorities must play a role. It has been proven beyond any doubt that unchecked
markets are neither effective nor efficient and austerity is not the answer as it destroys the
macroeconomic framework industrial policy builds on. Misguided neoliberal austerity
policies have lead to the worst economic crisis in the history of the European Union. It is
therefore of great importance that the state reclaims a strong and active role in shaping and
providing framework conditions that allow for industrial growth and job creation. This can
be done through legislation that corrects market failures, and removes market barriers as
well as by efficiently investing public funds in infrastructure, education or social security
systems in order to allow Europe’s industry to compete at a global level.
IndustriAll Europe advocates for these twelve key demands to be central to a truly European
industrial policy:
1. Industry’s main asset is its workforce. An ambitious industrial policy will not succeed
without stable systems of workers’ participation, social dialogue and investment in
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skills and training. A successful industrial policy delivers high quality and stable
employment for Europe’s workers!
2. Work place democratisation needs to be expanded and workers, regardless of their
contract situation, should have an individual right to training. Moreover, health &
safety standards and working conditions must be observed and improved
continuously.
3. A life-cycle approach to industrial production is of great importance as resources are
finite and the potential upsides of recycling have not yet been fully exploited.
Products sold in the European Union should be subject to high quality and
environmental standards and be developed as global benchmarks. Competition
must be driven by quality and sustainability instead by social dumping. Eco-efficiency
has to be developed into a competitive advantage for industrial production in
Europe.
4. High energy and raw material prices are impeding industrial growth in Europe as
imported fossil fuels are becoming expensive and scarce. The European Union needs
to implement a European energy policy that capitalises on the diverse geographic
potentials for energy generation across the continent. Investments in a smart grid
infrastructure and domestic renewable energy sources are required in order to
ensure the supply of affordable energy for Europe’s industry as well as its citizens. At
the same time, it will remain necessary to invest in bridge technologies.
5. Tax and subsidy competition between Member States of the European Union has to
be avoided in order to guarantee a level playing field for all companies and industrial
sites throughout Europe. A harmonised level for company taxation must be set
throughout Europe. Furthermore, Europe’s tax base needs to be broadened by
implementing a Financial Transaction Tax (FTT) and fighting tax evasion in order to
allow for recovery from the public debt crisis and regain room for manoeuvre for
political actions.
6. The R&D investment target set out in the Europe 2020 of investing 3% (public and
private funds) of the EU’s GDP in innovation must be ensured and stimulated.
Attention has to be given to key enabling technologies (KETs) with breakthrough
potential but also to social and non-technological innovation throughout the whole
value chain.
7. Industrial value creation chains are main drivers for employment and wealth
creation in Europe. Industrial structures need to be safeguarded and modernised
were necessary. All measures taken in this context must provide for a socially just
transition. IndustriAll Europe urges the Europe Commission to acknowledge the
importance of the basic and capital goods industries for Europe’s economy in any
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future communication or strategy. High quality and sustainable employment
develops from an existing industrial base.
8. In addition to horizontal policies, tailor-made strategies for every industrial sector
need to be adopted at EU level. Europe’s geographic and structural diversities need
to be taken into account. Industrial policy must contribute towards social cohesion
throughout the European Union.
9. The special need for financing of small and medium sized enterprises (SMEs) must
be taken into account. The financial sector must fulfil its role as service provider to
the real economy. Under all circumstances it must be avoided that insecurities on
the global finance markets determine the availability of credit for regionally
functioning business structures.
10. Public authorities need to intervene in the market in order to correct failure,
overcome barriers and price in externalities. Public procurement must be used more
effectively as tool to foster the growth of industrial activities with a European added
value.
11. Europe needs to develop a global approach towards mobility. Currently available
transport systems are increasingly not meeting the demands of Europe’s citizens.
Concepts for reducing congestion and emission guaranteeing transportation in both
urban and rural areas need to be developed and consequently implemented. The
European transport industry is well equipped to satisfy these demands for a
sustainable mobility concept and incentives and framework conditions should be set
to play to the strengths of Europe’s transport industry.
12. Fair competition in the European and global markets alike must be ensured in order
to safeguard Europe’s industry and existing industrial structures. Compliance with
ILO social and environmental standards must be observed in this context. Efforts
need to be undertaken to ensure a sustainable global trading system, taking into
consideration the needs of developed and developing countries alike.
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