Commission report highlights need for ‘industrial renaissance’

Most sectors have still not regained their pre-crisis level of output and significant differences exist between sectors and EU member states, according to a European Commission report on the current status of EU industry.

The ‘EU industrial structure report 2013: Competing in Global Value Chains’ sheds light on the downward trend in manufacturing. Also highlighted are the mutually beneficial links between manufacturing and services as well as the importance of global value chains. The report ultimately underlines the growing need to mainstream industrial competitiveness into other policy fields. These issues, recently highlighted by the Commission’s Communication on a European Industrial Renaissance, will be directly addressed at the forthcoming Competitiveness Council meeting on 20-21 February.

European Commission Vice-President responsible for Industry and Entrepreneurship Antonio Tajani (pictured) commented: “This report clearly shows that the 2008 crisis led to a significant acceleration of European industrial decline, and that industry needs targeted support to help it return to growth.”

As supported by other studies, the report showed that the fragile recovery hinted at by positive growth in 2010-2011 was interrupted by a downturn in the business cycle and EU industries experienced a double dip. It also confirmed that since 2001 manufacturing sectors, as a proportion of economic output, declined further by 3% to around 15% of GDP in 2012.

Tajani added: “Europe is still far from the 20% target of industry’s share in Europe’s GDP by 2020. To meet this goal we need to focus on reindustrialisation. I therefore call on member states to support the new industrial compact at next week’s Competitiveness Council.”