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EU industrial policy at the crossroads: Current state of affairs, challenges and way forward

02-12-2019

Industry plays a pivotal role in the EU's economy and growth model. Today, however, it stands at the crossroads, heavily affected by new disruptive forces, ranging from the rise of new technologies to shifts in global economic power and evolving geopolitical circumstances. Addressing these challenges raises a number of critical dilemmas, such as the need to pursue openness of markets and trade while protecting industry from unfair competition, or the need to promote greener and more sustainable industry ...

Industry plays a pivotal role in the EU's economy and growth model. Today, however, it stands at the crossroads, heavily affected by new disruptive forces, ranging from the rise of new technologies to shifts in global economic power and evolving geopolitical circumstances. Addressing these challenges raises a number of critical dilemmas, such as the need to pursue openness of markets and trade while protecting industry from unfair competition, or the need to promote greener and more sustainable industry while maintaining its global competitiveness. It also prompts a reconsideration of the EU's strategic positioning from a defensive to an offensive policy stance. These developments have triggered a lively debate on the need for a renewed, more assertive, comprehensive and coordinated industrial policy at EU level. This paper reviews the current state of affairs and key challenges facing the EU and provides an analysis of the main policy options going forward.

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.

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.

Industry 4.0

15-02-2016

This study, prepared by Policy Department A at the request of the ITRE committee, analyses the Industry 4.0 Initiative which encompasses the digitalisation of production processes based on devices autonomously communicating with each other along the value chain. It considers the potential of the initiative and business paradigm changes and impacts of this transformation. The study assesses the rationale for public intervention and outlines measures that could be adopted to increase the gains and ...

This study, prepared by Policy Department A at the request of the ITRE committee, analyses the Industry 4.0 Initiative which encompasses the digitalisation of production processes based on devices autonomously communicating with each other along the value chain. It considers the potential of the initiative and business paradigm changes and impacts of this transformation. The study assesses the rationale for public intervention and outlines measures that could be adopted to increase the gains and limit the threats from Industry 4.0.

Údar seachtarach

Jan SMIT (Centre for Strategy & Evaluation Services LLP), Stephan KREUTZER (Centre for Strategy & Evaluation Services LLP), Carolin MOELLER (Centre for Strategy & Evaluation Services LLP) and Malin CARLBERG (Centre for Strategy & Evaluation Services LLP)

Industry 4.0: Digitalisation for productivity and growth

22-09-2015

Many observers believe that Europe is at the beginning of a new industrial revolution, considered to be the fourth such leap forward and hence labelled Industry 4.0. The ubiquitous use of sensors, the expansion of wireless communication and networks, the deployment of increasingly intelligent robots and machines – as well as increased computing power at lower cost and the development of 'big data' analytics – has the potential to transform the way goods are manufactured in Europe. This new, digital ...

Many observers believe that Europe is at the beginning of a new industrial revolution, considered to be the fourth such leap forward and hence labelled Industry 4.0. The ubiquitous use of sensors, the expansion of wireless communication and networks, the deployment of increasingly intelligent robots and machines – as well as increased computing power at lower cost and the development of 'big data' analytics – has the potential to transform the way goods are manufactured in Europe. This new, digital industrial revolution holds the promise of increased flexibility in manufacturing, mass customisation, increased speed, better quality and improved productivity. However to capture these benefits, enterprises will need to invest in equipment, information and communication technologies (ICTs) and data analysis as well as the integration of data flows throughout the global value chain. The EU supports industrial change through its industrial policy and through research and infrastructure funding. Member States are also sponsoring national initiatives such as Industrie 4.0 in Germany, the Factory of the Future in France and Italy, and Catapult centres in the UK. However challenges remain. The need for investment, changing business models, data issues, legal questions of liability and intellectual property, standards, and skills mismatches are among the challenges that must be met if benefits are to be gained from new manufacturing and industrial technologies. If these obstacles can be overcome, Industry 4.0 may help to reverse the past decline in industrialisation and increase total value added from manufacturing to a targeted 20% of all value added by 2020. Please click here for the full publication in PDF format

EU Industrial Policy: Assessment of Recent Developments and Recommendations for Future Policies

02-03-2015

Following disregard in the 1980s, industrial policy has recently attracted policy attention at EU level. The objective of this study provided by Policy Department A at the request of the ITRE Committee, is to establish the state of the art of a coordinated and integrated EU industrial policy. It assesses current initiatives, policies and arrangements and proposes an overview of stakeholders’ positions at EU and national levels in order to feed into the debate on how to improve competitiveness and ...

Following disregard in the 1980s, industrial policy has recently attracted policy attention at EU level. The objective of this study provided by Policy Department A at the request of the ITRE Committee, is to establish the state of the art of a coordinated and integrated EU industrial policy. It assesses current initiatives, policies and arrangements and proposes an overview of stakeholders’ positions at EU and national levels in order to feed into the debate on how to improve competitiveness and growth in Europe.

Údar seachtarach

Julie Pellegrin (CSIL - Centre for Industrial Studies, Italy), Maria Letizia Giorgetti (University of Milan, Italy), Camilla Jensen (CASE, Poland) and Alberto Bolognini (Economisti Associati, Italy)

A picture of the EU car industry

28-02-2013

2012 was a tough year for the EU car industry. The perennial problem of surplus production capacity in Europe (15% in 2012) is allied to a mature (roughly flat since 2001) domestic market and buyers facing austerity.

2012 was a tough year for the EU car industry. The perennial problem of surplus production capacity in Europe (15% in 2012) is allied to a mature (roughly flat since 2001) domestic market and buyers facing austerity.

Mining in the EU: regulation and the way forward

19-12-2012

The EU mining industry may be part of the solution to Europe's raw material shortage, but limiting the environmental footprint of mining is a key requirement if it is to be revived.

The EU mining industry may be part of the solution to Europe's raw material shortage, but limiting the environmental footprint of mining is a key requirement if it is to be revived.

Developing Countries and the ICT Revolution

01-03-2001

The objective of this project is to look at the potential role of the EU in supporting ICT capacity-building in low-income countries.

The objective of this project is to look at the potential role of the EU in supporting ICT capacity-building in low-income countries.

Údar seachtarach

Maurizio Pedrelli (Pragmata srl, Reggio Emilia, Italy)

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