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Friday, 26.04.2024, 10:46
Modern EU industrial policy: EU’s assistance to the Baltics States growth
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European industrial development, both in general term and in
several sectors has been retaining strong and often leading positions in the global
markets. Industry accounts for two thirds of the EU's exports and provides jobs
for 32 mln people, with 1.5 mln of these jobs created since 2013. But to
maintain and reinforce its competitive advantage, an important modernisation
effort is required.
Industrial growth has been in the center of the Juncker
Commission’s agenda since 2014 and almost all Commission’s policies have been geared
to empower industrial growth, to create jobs, boost European competitiveness,
foster investment and innovation in clean and digital technologies, while defending
European regions and workers affected by industrial change.
On Commission’s political guidelines see more in:
https://ec.europa.eu/commission/publications/president-junckers-political-guidelines_en
Particular attention to new industrial policy’s guidelines
has been revealed in the Commission’s state-of-the Union address in September
2017.
The 2017-State-of-the Union in: http://europa.eu/rapid/press-release_SPEECH-17-3165_en.htm
Industrial innovation
New production technologies are changing Europe's industrial
landscape and play an increasingly important role in determining the ability of
European business to compete globally. They will create jobs through a number
of channels, and technologies delivering higher productivity can benefit the
wider economy. They may also have a deeper impact on the nature and
availability of work.
The future of Europe's industry will depend on the member
states’ ability to continuously adapt and innovate by investing in new
technologies and embracing changes brought on by increased digitisation and the
transition to low-carbon and circular economy. At the same time, the global
competition is becoming stronger; besides, the benefits of globalisation and
technological progress are unevenly spread across countries.
Commission’s political guidelines have shown the
importance of a strong and high performing industries for the future of European
economy in general and those of the member states. Hence, the creation of jobs
and growth through innovation and investment has attracted attention both in
the EU industrial policies and in the member states.
For example, the EU’s efforts towards more concise capital
markets union have helped to mobilize resources to boost economic recovery; the
EU’s support for innovation helps industry and in particular SMEs to gain strength.
European industrial development is at the forefront of the
global actions towards low-carbon and circular economy through its circular
economy, clean energy and low carbon economy initiatives. Important
decisions have been already adopted by the EU institutions: for example on circular
economy package, there is a valuable Commission’s web-site:
http://ec.europa.eu/environment/circular-economy/index_en.htm;
As to the “clean energy” initiatives, the SMEs can get
inspiration from the Commission’s new consumer-oriented rules in:
Commission’s press release on low-carbon economy suggests
innovative approaches to SMEs in:
http://europa.eu/rapid/press-release_IP-16-2545_en.htm
There are several other EU initiatives:
- on key enabling technologies which
would help member states’ industries compete globally; KETs inspire shift to a greener economy, modernising member
states’ industrial base, and drive the development of entirely new industries.
The KETS are made a key element of European industrial policy.
See more on KETS in:
https://ec.europa.eu/growth/industry/policy/key-enabling-technologies_en;
and
https://ec.europa.eu/growth/industry/policy/key-enabling-technologies/european-strategy_en
Digital single market and “new skills”
The EU data economy is estimated at €272 billion with the annual
growth of 5.6%; the sector could employ 7.4 mln” people by 2020. Data can be
used to improve almost every aspect of daily life, from business analysis to
weather forecasting, from new era in medicine enabling personalised care, to
safer roads and fewer traffic jams. The EU institutions have been constantly emphasizing
the role of free flow of data among the member states.
On the creation of a properly functioning data economy
in the member states, see Commission press release at: http://europa.eu/rapid/press-release_IP-17-5_en.htm?locale=en
New initiative along the digital single market, as well as on
the accompanying “digitisation of industry”, also include new European
proposals concerning the EU-5G action plan; both would help businesses in the
states to take advantage of new developments.
More on the EU digital agenda strategy can be seen in:
https://ec.europa.eu/commission/priorities/digital-single-market_en;
and on the “digitisation of industry”, there is a comprehensive Commission’s
website:
https://ec.europa.eu/digital-single-market/en/policies/digitising-european-industry
Generally, the European single market strategy makes
it possible for industrial sectors and SMEs to get access to a market of several
hundred mln consumers in the EU states and use connections in value chains free
from customs or technical barriers. However, about 40% of European employers acknowledged
that they could not find people with the right skills to grow and innovate.
Finally, too few people have the entrepreneurial mindset and competences to
start their own business and keep adapting to evolving requirements of the
labour market.
The new European initiative on “new skills” (the actions
approved during 2016-17) includes about ten actions to be taken by the member
states in the coming years.
The EU “new skills” initiative for the Baltic States is
composed of the following actions:
- A European/states’
skills guarantee to
help low-skilled adults acquire a minimum level of literacy, numeracy and
digital skills and progress towards an upper secondary qualification.
- A review of the European qualifications framework for
a better understanding of qualifications and to make better use of all
available skills in the European labour market.
- The "digital skills and jobs coalition" bringing
together EU and states’ education, employment and industry authorities to
develop a large European “digital talent pool” and ensure that individuals and
the labour force in European states are equipped with adequate digital skills.
- Sectoral cooperation on skills, aimed to improve skills intelligence
and address skills shortages in specific economic sectors.
-A "Skills profile tool for third country nationals" to
support early identification and profiling of skills and qualifications of
asylum seekers, refugees and other migrants.
- A revision of the Europass framework, offering
people better and easier-to-use tools to present their skills and get useful
real-time information on skills needs and trends which can help with career and
learning choices.
- Activating Vocational Education and Training (VET) by
enhancing opportunities for VET learners to undertake a work based learning
experience and promoting greater VET’s visibility of good labour market
outcomes.
- Recommendation for the states on key competences to
help more people acquire the core set of skills necessary to work and live in
the 21st century with a special focus on promoting
entrepreneurial and innovation-oriented mind-sets and skills.
- the member states’ graduate tracking to
improve information on how graduates progress in the labour market.
- Exchange best practices on effective ways to address brain
drain.
Turning research into innovative SMES
The renewed EU industrial policy strategy brings together
all EU and the states’ horizontal and sector-specific initiatives into a
comprehensive industrial strategy. Thus, the strategy clarifies the tasks ahead
for all actors in the states involved. For a better coordination, the EU
created annual Industry Days, the first took place
in February 2017, as well as a High Level Industrial Roundtable to allow in particular industry and
civil society to steer industrial policy actions in the future. As the
Commission authorities postulate, “by embracing
technological change, converting research investments into innovative business
ideas, and continuing to pioneer the low-carbon and circular economy” the
member states can pave the way for a smart, innovative and sustainable industrial
sectors. Besides, many industrial sectors in the states are presently at a turning
point: hence, the Baltic States industrial policy shall be aimed at empowering
continued sustainable growth.
Main elements of the new EU industrial policy strategy
include:
- A
comprehensive package to reinforce industry's cybersecurity: the efforts include the creation
of a European Cybersecurity Research
and Competence Centre to support the development of technology and
industrial capabilities in cybersecurity, as well as an EU-wide
certification scheme for products and services, recognised in all EU states
(adopted in 2017).
- A
proposal for a regulation on the free flow of non-personal data to
enable data circulates freely across borders, helping to modernise
industry and create a truly common European data space.
- A
series of actions on “circular economy”, including a strategy on plastics and
measures to improve the production of renewable biological
resources and their conversion into bio-based products and
bio-energy.
- Initiatives
to modernise the Intellectual Property Framework, including a Directive on
the enforcement of intellectual property rights and providing
a balanced, clear and predictable European licensing framework for Standard
Essential Patents.
- Improving
public procurement functioning of the states, including a
voluntary mechanism to provide clarity and guidance to authorities
planning large infrastructure projects.
- Extension
of the “skills agenda” to new key industry sectors, such
as construction, steel, paper, green technologies and renewable energies,
manufacturing and maritime shipping.
- A
strategy on sustainable finance to better orient private
capital flows to more sustainable investments.
- Initiatives
for a balanced and progressive trade policy and a
European framework for the screening of foreign direct investments,
FDIs that may pose a threat to security.
On trade policy see Commission press release in:
http://europa.eu/rapid/press-release_IP-17-3182_en.htm
On FDI see: http://europa.eu/rapid/press-release_IP-17-3183_en.htm
- Revision
of the list of critical raw materials to ensure a secure,
sustainable and affordable supply for the member states’ manufacturing sectors.
- Proposals
for clean, competitive and connected mobility, including reduction
of CO2 emissions for cars and vans, an “alternative fuels infrastructure
action plan” to support the deployment of battery’s charging
infrastructure, as well as some actions to foster autonomous driving.
These industrial policy actions have formed a shared
responsibility between the EU institutions and the member states; through
industrial policy as such is within the EU’s “supporting and supplementing
competence”.
No doubt, the success of new industrial policy depends on exploring
a new vision and closer cooperation among all EU institutions, member states’
authorities, as well as regional and business community.
Additional information on industrial policy’s actions is
in the following web-links:
- State of the Union
2017 web page;
- The
10 political priorities of the European Commission;
- Factsheet
"A holistic strategy and a strong partnership in a new industrial
age";
- Factsheet
"Making Europe's industry stronger: Key Commission initiatives";
- Stockshots;
- A
Renewed Industrial Policy Strategy for Europe;
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