Commission reviews its industrial policy in the context of enlargement
The Commission has published a communication analysing the role and effectiveness of European industrial policy, and hopes that the report will lead to an EU-wide review of the industrial policy framework. Entitled 'industrial policy in an enlarged Europe', the communication provides an overview of the current state of industry and the challenges facing it, looks at the implications of enlargement, and outlines the Commission's industrial goals and proposed measures to achieve them. Romano Prodi, the Commission President, said: 'This communication demonstrates our commitment to keep industry and its competitiveness at the core of the Commission's policy. Only competitive enterprises can create the jobs and wealth we need to realise the strategic goals we set at the Lisbon and Gothenburg summits.' The future enlargement of the European Union is highlighted in the report as being 'a major source of opportunities for industry in new and existing Member States alike.' But the communication also warns that sizable differences still exist between the manufacturing industry within the EU, and within the candidate countries, where it tends to be less specialised and more centred on low-technology sectors. The growth of entrepreneurship and the impact of small and medium sized enterprises on industry have also been less significant in the candidate countries than in the EU, and the communication suggests that specific measures should be implemented in order to increase support in these areas. Overall, states the report: 'The challenge in the candidate countries is to develop the skills as well as the institutional and business framework that will enhance the possibilities for local companies to successfully integrate in international production networks. In looking at the factors affecting industrial competitiveness in Europe as a whole, the report highlights three main drivers: knowledge, innovation and entrepreneurship. In order to improve Europe's performance in these areas, and thus raise the overall competitiveness of industry, the report calls for an increased focus on education and research, the refinement and improvement of products, services and processes, and more encouragement for risk-taking in business. Given that industrial performance is dependent on such a wide range of factors, the communication makes the point that many of its instruments are the instruments of other policy fields, such as competition, research and development, education, competition and sustainable development. Therefore, it states that those responsible for industrial policy in Europe must also ensure that policies in these other policy areas also contribute to the competitiveness of industry. In conclusion, the Commission proposes a three-point review of industrial policy in Europe as a follow up to the communication. First, other EU institutions and stakeholders are invited to discuss and respond to the strategy set out in the report; second, the Commission announces that it intends to review the effectiveness of its own industrial policies; and third, the Commission urges Member States to review their own measures to support industrial competitiveness. In announcing the publication of the communication, the Commissioner for Enterprise and the Information Society, Erkki Liikanen, highlighted the wider implications of the report and the issues it addresses. He said that the communication aimed to: 'strike the right balance between the three pillars - social, environmental and economic - of sustainable development. If the economic pillar is not strong enough it will become impossible to achieve our ambitious goals of sustainable development. Only a competitive European industry can generate the financial resources necessary to meet the other objectives.'