New Industrial Strategy for Europe

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         EU law EU case-law Official Journal National law and case-law Information Document 52020DC0102 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A New Industrial Strategy for Europe COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A New Industrial Strategy for Europe COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A New Industrial Strategy for Europe COM/2020/102 final 

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EUROPEAN COMMISSION Brussels, 10.3.2020 COM(2020) 102 final  COMMUNICATION FROM THE COMMISSION A New Industrial Strategy for Europe 
1.Europe’s new industrial way
 
Europe has always been the home of industry. For centuries, it has been a pioneer in industrial innovation and has helped improve the way people around the world produce, consume and do business. Based on a strong internal market, the European industry has long powered our economy, providing a stable living for millions and creating the social hubs around which our communities are built. 
 
Throughout its long history, industry has proven its ability to lead change. And it must now do the same as Europe embarks on its transition towards climate neutrality and digital leadership in an ever-changing and ever more unpredictable world. 
 
The twin ecological and digital transitions will affect every part of our economy, society and industry. They will require new technologies, with investment and innovation to match. They will create new products, services, markets and business models. They will shape new types of jobs that do not yet exist which need skills that we do not yet have. And they will entail a shift from linear production to a circular economy. 
 
These transitions will take place in a time of moving geopolitical plates which affect the nature of competition. The need for Europe to affirm its voice, uphold its values and fight for a level playing field is more important than ever. This is about Europe’s sovereignty. 
 
The breadth and depth, the scale and speed, the nature and necessity of the twin transitions are unprecedented. This is reflected in President von der Leyen’s Political Guidelines, the priorities set out by the European Parliament and the European Council’s Strategic Agenda 2019-2024. The European Green Deal
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 and the Commission’s recent Strategy on Shaping Europe’s Digital Future
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 set the ambition, speed and direction of travel for the years to come. 
 
We now need a new industrial way for Europe, fit for the ambitions of today and the realities of tomorrow. At the heart of this is the ability of Europe’s industry to lead the twin transitions and drive our competitiveness. It cannot afford to simply adapt – it must now become the accelerator and enabler of change and innovation. Our industrial policy must help make this ambition a reality.
 
Europe’s industrial strategy must reflect our values and social market traditions. We will rely on our strengths: our diversity and talent, our values and way of life, our innovators and creators. We need a European industrial policy based on competition, open markets, world-leading research and technologies and a strong single market which brings down barriers and cuts red tape. And we must resist the simplistic temptations that come with protectionism or market distortions, while not being naïve in the face of unfair competition. 
 
This strategy recognises the strength and the role of the European Union, primarily as an enabler and regulator. Setting the framework and providing political and policy direction is crucial to offer the certainty needed for investors, innovators and industry alike. 
 
Our new industrial strategy is entrepreneurial in spirit and in action. The Commission is ready to co-design and co-create solutions with industry itself, as well as with social partners and all other stakeholders. This will be supported by a new focus on industrial ecosystems, taking into account all players within a value chain. This is our new approach and reflects the need for new ways of thinking and working to lead the twin transitions. 
 
This strategy shows the direction of travel and the route we will take to get there. It lays out the vision of what we want to achieve by 2030 and beyond, and the fundamentals that will take us there. In times of transition and major change for our Union, one simple reality will remain the same: Europe will always be the home of industry. And with this strategy, the European Commission is ready to do what it takes to make sure it stays that way. 
 
2.Europe’s industry: Today and tomorrow
 
Industry is central to Europe’s future progress and prosperity. It makes up more than 20% of the EU’s economy and employs around 35 million people, with many millions more jobs linked to it at home and abroad. It accounts for 80% of goods exports and is a key reason behind the EU’s position as top global provider and destination for foreign direct investment. Small and medium sized businesses (SMEs) account for over 99% of all European firms – the vast majority of which are family run companies – and are our economic and social backbone
3
.
 
Europe’s industry has a global competitive advantage on high value-added products and services. It leads by example complying with the highest social, labour and environmental standards, allowing Europe to project its values. Thanks to a strong innovation capacity, it is also a world leader in green technology patents and other high tech sectors. Our single market empowers European companies of all sizes to innovate, scale-up and employ more people. These strengths need to be channelled towards gaining leadership in areas where the EU still lags behind, such as on cloud and data applications.