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EU policies – Delivering for citizens: Industrial policy

28-06-2019

Through its industrial policy, the European Union (EU) has been striving to create conditions conducive to increasing industry growth and competitiveness since 1992. European industry remains a cornerstone of the economy, providing one job out of five, and is responsible for the bulk of EU exports and investment in research and innovation. Today, the aim of EU policy is to enable a successful transition towards digital, knowledge-based, decarbonised and more circular industry in Europe. To achieve ...

Through its industrial policy, the European Union (EU) has been striving to create conditions conducive to increasing industry growth and competitiveness since 1992. European industry remains a cornerstone of the economy, providing one job out of five, and is responsible for the bulk of EU exports and investment in research and innovation. Today, the aim of EU policy is to enable a successful transition towards digital, knowledge-based, decarbonised and more circular industry in Europe. To achieve this goal, the EU supports, coordinates and supplements Member State-level policies and actions, mainly in the areas of research and innovation, SMEs and digital technologies. In a Eurobarometer poll conducted for the European Parliament, more than half of EU citizens expressed support for increased EU action on industrial policy. Despite this, it is still the least understood policy area covered by the poll. Since 2014, efforts have been made in a number of areas, including investment (mainly through the European Fund for Strategic Investment, which supports industrial modernisation); digitalisation (for example setting up a number of research partnerships, or a growing network of digital innovation hubs); financing (making it easier for industry and SMEs to access public markets and attract venture funds); greener industry (for example through the revised 2030 emission targets, or measures on clean mobility); standardisation (bringing together relevant stakeholders to collectively develop and update European standards); and skills (mobilising key stakeholders to close the skills gap and providing an adequate workforce for modern industry). The European Parliament has called for ambitious policies in many of these areas. In the future, EU spending on key areas relevant to industrial policy is expected to rise moderately. The European Commission is proposing to boost the share of EU spending on research, SMEs and key infrastructure, although not as much as Parliament has requested. In the coming years, policies are likely to focus on seeking fairer global competition, stimulating innovation, building digital capacities and increasing the sustainability of European industry. This is an update of an earlier briefing issued in advance of the 2019 European elections.

Horizon Europe – Specific programme: Implementing the framework programme

15-05-2019

In June 2018, the European Commission proposed a total budget allocation of €100 billion to finance science, research and innovation projects during the 2021-2027 period, of which the vast majority, €94.1 billion in current prices, would be allocated to the Horizon Europe framework programme. The main aims are to strengthen science and technology, to foster industrial competiveness, and to implement the sustainable development goals in the EU. Horizon Europe would introduce new features such as the ...

In June 2018, the European Commission proposed a total budget allocation of €100 billion to finance science, research and innovation projects during the 2021-2027 period, of which the vast majority, €94.1 billion in current prices, would be allocated to the Horizon Europe framework programme. The main aims are to strengthen science and technology, to foster industrial competiveness, and to implement the sustainable development goals in the EU. Horizon Europe would introduce new features such as the European Innovation Council, missions to promote research results, and new forms of partnerships. While the proposal for the framework programme sets out the general and specific objective of Horizon Europe as well as the structure and the broad lines of the activities to be carried out, the specific programme aims to define the operational objectives and activities, especially for missions, the European Research Council, the European Innovation Council, work programmes, and the committee procedure. In April 2019, after several trilogue meetings, Parliament and Council reached a partial agreement, covering the specific programme’s content. It does not however address budgetary issues, pending negotiations on the EU’s overall 2021-2027 long-term budget. Parliament thus adopted its first-reading position on 17 April 2019, and it is expected that further trilogue negotiations will take place in the new term.

European Defence Fund: Multiannual financial framework 2021-2027

15-05-2019

In June 2018, the European Commission presented a legislative proposal on a European Defence Fund, including a budget allocation of €13 billion in current prices for the 2021-2027 period. The proposal aims to streamline and simplify the current legislation by integrating the Preparatory Action on Defence Research (research window) and the European Defence Industrial Development Programme (as one part of the capability window) into a single fund. The main aims of the fund are to foster the competitiveness ...

In June 2018, the European Commission presented a legislative proposal on a European Defence Fund, including a budget allocation of €13 billion in current prices for the 2021-2027 period. The proposal aims to streamline and simplify the current legislation by integrating the Preparatory Action on Defence Research (research window) and the European Defence Industrial Development Programme (as one part of the capability window) into a single fund. The main aims of the fund are to foster the competitiveness and innovativeness of European defence and to contribute to the EU's strategic autonomy. In this regard, the fund would support collaborative industrial projects; co finance the costs of prototype development; encourage the participation of small and medium-sized enterprises; and promote projects in the framework of permanent structured cooperation. Synergies are expected with other EU initiatives in the field of cybersecurity, maritime transport, border management, Horizon Europe, the space programme and the European Peace Facility. In April 2019, after several trilogue meetings, Parliament and Council reached a partial agreement on the programme, covering the content, but not, among other things, budgetary issues. Parliament adopted its position at first reading in April. Further discussions on the outstanding issues can be expected once Council reaches agreement on the overall multiannual budget. Second edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.

Member States Progress towards the EU 2020 Targets

21-02-2019

This note prepared by Economic Governance Support Unit gives an overview of the member states progress towards the EU 2020 targets.

This note prepared by Economic Governance Support Unit gives an overview of the member states progress towards the EU 2020 targets.

EU agricultural research and innovation

09-01-2019

The European Union's long-term strategy for agricultural research and innovation was published in January 2016 following a year-long process of development, which included targeted consultations. Based on five priority areas, the strategy guides the programming of its main research and innovation programme – Horizon 2020 – not only for 2018 to 2020 but also for the period beyond 2020, to be covered by Horizon Europe. In light of discussions on the future of the common agricultural policy (CAP), the ...

The European Union's long-term strategy for agricultural research and innovation was published in January 2016 following a year-long process of development, which included targeted consultations. Based on five priority areas, the strategy guides the programming of its main research and innovation programme – Horizon 2020 – not only for 2018 to 2020 but also for the period beyond 2020, to be covered by Horizon Europe. In light of discussions on the future of the common agricultural policy (CAP), the role of innovation in agriculture is examined, including the potential contribution that research and innovation can make to agriculture, the agri-food sector, rural areas and the challenges they face. These are set against changing global trends in public expenditure on agricultural research and development. These trends point to a relatively flat pattern of expenditure over the years 2012 to 2016 for the EU. In global terms, the structure of public agricultural expenditure is changing, with historically richer countries ceding ground to those with rapidly rising per capita incomes. In considering the EU's long-term strategy for agricultural research and innovation, the links between the CAP and the EU's research and innovation policies are identified. Evaluation evidence from a range of sources on the actual or potential impact of investment in agricultural research and innovation point to a link between such investment and productivity growth in agriculture, the potential for multi-dimensional impacts, and the potential offered by the Commission's current approach to agricultural research and innovation through the European innovation partnership operational groups for agriculture (EIP-AGRI).

The productivity riddle: Supporting long-term economic growth in the EU

03-12-2018

Productivity has a key role to play in the EU's long-term economic growth. The recent economic recovery has reversed the negative trend but concerns remain about long-term prospects. Productivity varies across the EU, with newer Member States reaching only about half the level of the older ones (EU-15) when measured in terms of gross domestic product (GDP) per hour worked, but showing a higher growth dynamic. The recent poor productivity growth in the EU raises a number of important policy questions ...

Productivity has a key role to play in the EU's long-term economic growth. The recent economic recovery has reversed the negative trend but concerns remain about long-term prospects. Productivity varies across the EU, with newer Member States reaching only about half the level of the older ones (EU-15) when measured in terms of gross domestic product (GDP) per hour worked, but showing a higher growth dynamic. The recent poor productivity growth in the EU raises a number of important policy questions. First, there is no consensus on the reasons behind it or the best ways to remedy it. There are also conflicting views regarding how long this situation will continue. Most economists believe the current weak growth trend may be explained by a combination of cyclical and structural economic weaknesses that need to be addressed by a mix of shorter and longer-term measures. Remedies for low productivity include increasing labour market participation, strengthening product market competition, encouraging demand, investment and lending to companies, as well as restructuring inefficient markets, disseminating technology and generalising digitalisation. In the EU context, particularly important factors conducive to productivity growth include creating a genuine single market for services, boosting digitalisation across economic sectors and addressing long-term challenges, such as the ageing society and rising income inequalities, as well as implementing long-awaited structural reforms in the Member States.

Sector coupling: how can it be enhanced in the EU to foster grid stability and decarbonise?

19-11-2018

Sector coupling involves the increased integration of energy end-use and supply sectors with one another. This can improve the efficiency and flexibility of the energy system as well as its reliability and adequacy. Additionally, sector coupling can reduce the costs of decarbonisation. To foster the full potential of sector coupling in several end-use and supply applications, it is important that existing techno-economic, policy and regulatory barriers are removed. Furthermore, a more integrated ...

Sector coupling involves the increased integration of energy end-use and supply sectors with one another. This can improve the efficiency and flexibility of the energy system as well as its reliability and adequacy. Additionally, sector coupling can reduce the costs of decarbonisation. To foster the full potential of sector coupling in several end-use and supply applications, it is important that existing techno-economic, policy and regulatory barriers are removed. Furthermore, a more integrated approach to energy systems planning is needed. This document was provided by Policy Department A at the request of the Committee on Industry, Research and Energy.

Awtur estern

Luc VAN NUFFEL, João GORENSTEIN DEDECCA, Tycho SMIT, Koen RADEMAEKERS, Trinomics B.V.

Establishing the European Defence Fund

26-10-2018

One of a number of MFF-related impact assessment reports, this IA provides a comprehensive overview of the problems facing European defence development, as well as the general objectives that the proposed European Defence Fund is meant to address. It would nevertheless have gained by including a more detailed explanation behind the merger of the two financing windows, as well as a more detailed analysis of impacts. Finally, the lack of more specific objectives appears to have weakened the analysis ...

One of a number of MFF-related impact assessment reports, this IA provides a comprehensive overview of the problems facing European defence development, as well as the general objectives that the proposed European Defence Fund is meant to address. It would nevertheless have gained by including a more detailed explanation behind the merger of the two financing windows, as well as a more detailed analysis of impacts. Finally, the lack of more specific objectives appears to have weakened the analysis of monitoring mechanisms and it is unclear how stakeholders' views have fed into the analysis.

Galileo Satellite Navigation System

25-10-2018

This study explains the background necessary for understanding of the Global Satellite Navigation System (GNSS) working principles and the importance of GNSS in our daily life and work. It highlights the specific socio-economic and strategic advantages enabled by the European satellite navigation system ‘Galileo’. It also identifies some of the gaps and challenges towards Galileo’s final operational capability expected in 2021. The study proposes different policy options in order to maximise the ...

This study explains the background necessary for understanding of the Global Satellite Navigation System (GNSS) working principles and the importance of GNSS in our daily life and work. It highlights the specific socio-economic and strategic advantages enabled by the European satellite navigation system ‘Galileo’. It also identifies some of the gaps and challenges towards Galileo’s final operational capability expected in 2021. The study proposes different policy options in order to maximise the impact of the European satellite navigation system in the near future and in the long term.

European defence industrial development programme (EDIDP)

28-09-2018

The European Union is facing new security threats amid growing uncertainty about the reliability of some of its allies. As a consequence, it has embarked on a general scalingup of its defence capabilities. A European defence action plan has been agreed and a European Defence Fund created to provide financial support, ranging from the research phase to the acquisition phase of military equipment and technologies. The EDIDP, which will be part of that fund, is destined to provide the European defence ...

The European Union is facing new security threats amid growing uncertainty about the reliability of some of its allies. As a consequence, it has embarked on a general scalingup of its defence capabilities. A European defence action plan has been agreed and a European Defence Fund created to provide financial support, ranging from the research phase to the acquisition phase of military equipment and technologies. The EDIDP, which will be part of that fund, is destined to provide the European defence industry with financial support during the development phase of new products and technologies in areas selected at European level. An agreement was reached in trilogue negotiations in May 2018, and after Parliament and Council had approved the deal, the final legislative act was signed on 18 July 2018. This programme, with a financial envelope of €500 million, is due to run from January 2019 to December 2020.

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