European business offers updates to Europe’s industrial strategy
The Lithuanian Confederation of Industrialists (LPK), together with the European business organization BusinessEurope, supports the European Commission’s ambition to update the European industrial strategy it presented at the beginning of last year. This is proposed in the light of the circumstances surrounding the COVID-19 pandemic, including the expected delay of industrial and economic recovery. It is in favor of updates that will help restore the investment capacity of the affected businesses, contribute to innovation and strengthen the competitiveness of European business.
“Both through LPK’s membership in BusinessEurope and directly, we are actively involved in the intensive discussions taking place in Europe about the common long-term future of EU industry. We are in favor of a major overhaul of the New European Industrial Strategy presented last year, taking into account the dramatic changes brought by COVID-19,” says Vidmantas Janulevičius, President of LPK. According to the President of LPK, the recovery of the industry after the pandemic should be the primary goal of the strategy in the short term – it is a necessary precondition for sustainable and long-term economic recovery, growth and implementation of the ambitious goals of the Green Deal.
“The restoration of supply chains, the normal functioning of the internal market for goods, services and the digital market, the regulation of transport and other things, having a major impact on strengthening the industry in the current context should be primarily ensured as a strategic task. It is important to achieve the best possible coordination at EU level, to increase investment and to ensure the targeted distribution and use of financial assistance measures to help EU Member States recover from a coronavirus pandemic. The strategy should continue to be based on the basic principles of non-discrimination, competition and openness, which underpin the success of the EU single market and Europe’s strength in the world,” says V. Janulevičius.
As noted in the BusinessEurope document, which proposes updates to the strategy, in order to achieve the EU’s ambitious medium- and long-term goals for green and digital transformation, the funding needed to achieve these goals must be increased, focusing on added value. It is crucial for Lithuania that during the transition period, sufficient attention and incentives, including state aid, are given to the transformation of energy-intensive industries at EU level in order to encourage its reorientation towards more climate-neutral production and avoid relocation to third countries.
Regarding the implementation of the industrial strategy, the LPK contributes to BusinessEurope’s call for renewed monitoring of the competitiveness of European industry.
“It is to be welcomed that the European Commission sees the management of the implementation of the Industrial Strategy as a partnership. We are pleased that this year, for the first time in the history of the largest European industry event, EU INDUSTRY DAYS, we will not only participate as guests, but together with partners from all over the Baltic Sea Region will present a session on regional cooperation on climate neutrality and digitalization”, – notes the President of LPK.
The BusinessEurope document identifies six elements that should underpin a renewed European industrial strategy and are essential for the competitiveness of European industry. These are: 1) lessons learned by COVID-19; 2) green and digital industrial transformation; 3) competition policy; 4) a forward-looking EU trade agenda; 5) freedom of movement and the internal market; 6) implementation of industrial strategy.
