Industrial Change for Competitiveness, Growth and Jobs

Eliana Garcés TolónDirectorate General for Enterprise and Industry

European Commission

• The February 2014 meeting of the Heads of State (European Council) will focus on industrial policy

• The Commission will contribute to the February Council with a new industrial policy Communication

• The new draft Communication will focus on concrete measures to improve the implementation of established industrial policy priorities

• In 2012 the updated Communication followed a four pillar strategy:

1. Foster investment in innovation2. New market opportunities (internal and global)3. Facilitate access to capital4. Skills and human capital

• During 2013 the economic environment has improved, but for a full recovery to take place, there is a need to create better business conditions, encourage investment and create jobs

• EU manufacturing recovery from recession has been slow and partial

Changes in the annual growth rate of GDP

Share of gross fixed capital formation in total GDP (EU27, current prices, EUR)

Company borrowing costs

• Transforming Europe into an attractive economic area is a long term objective thatcan be attained through an integrated industrial

competitiveness policy joins all policy efforts and channel them in one direction

• Competitiveness is a long term objective that must constantly addressed

• The right industrial policy is already in place. We now intend to present concrete actions to implement this policy

Where are we with implementation?

• Task forces (Advanced manufacturing, Biobased products and technologies, Clean vehicles, Key enabling technologies, Smart grids, Sustainable construction)

• Financial instruments• Internationalisation• Policy coordination • Smart specialisation

Policy proposals stemming from the Thematic task forces The establishment of projects of Common European

Interest for a number of KETS areas Sustainable construction: Creating a credit line of €25

billion by the EIB for national lending mechanisms to:o foster energy efficiency in residential housing o improve the efficiency of the construction sector though an

initiative on recycling and waste

Coordination across a range of policies:

• Reinforcing and integrating internal market legislation, industrial and regional policies

• External dimension: Continuing to pursue FTA negotiations, economic diplomacy, EEN

• Access to finance: Increasing new SME loans volumes, proposing measures to diversify sources of long term financing

• Labour and Skills: Fostering anticipation of change and restructuring, cross-border mobility and cross-country traineeship

• Energy: Favouring a 2030 climate and energy framework, ETS and updated carbon leakage list that integrate industrial competitiveness and technology issues

We need SMEs to be leading actors in the re-industrialisation process

SMEs must overcome the barriers that limit their growthMaking good use of available instruments e.g. COSME,

cohesion policy prioritisation, SME instrument in Horizon 2020, Risk Capital State Aid Guidelines

Improving framework conditions, e.g. reducing time and costs to start up a new business => Small Business Act

Implementing a strong and ambitious clustering policy, integrating cluster excellence along the value-added chain = > Matchmaking SME platform

Provide assistance in the implementation of the New Cohesion Policy based on the principle of smart specialisation, by different means:

The Commission will deliver services to Regions, inform them of available technologies, foster information exchange, and initiate contact between local firms and technological leaders

A platform will be provided to help SMEs in those Regions to identify and create world-class clusters

• Smart Specialisation– Bottom up: it is a discovery process • in coordination with industry• Based on existing assets (skills, research center, exisiting

business)

– Integrated: it requires coordination of all policies• Investment, infractructure, skills, R&D

– Open: linkages are important in todays' world• Link across sectors (including services)• Link across regions, global links

Thank You