# EUR-Lex - 52005IP0230 - EN

Important legal notice

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# 52005IP0230

**European Parliament resolution on strengthening European competitiveness - the effects of industrial change on policy and the role of SMEs (2004/2154(INI)) **

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Official Journal 124 E , 15/05/2006 P. 0510 - 0516 *

P6_TA(2005)0230

Strengthening European competitiveness

European Parliament resolution on strengthening European competitiveness — the effects of industrial change on policy and the role of SMEs (2004/2154(INI))

The European Parliament,

- having regard to the Commission communication "Fostering structural change: An industrial policy for an enlarged Europe" (COM(2004)0274),

- having regard to the Commission communication "A pro-active competition policy for a competitive Europe" (COM(2004)0293),

- having regard to Article II-76 (Freedom to conduct a business) of the Treaty establishing a Constitution for Europe,

- having regard to the Presidency conclusions of the Lisbon European Council of 23 and 24 March 2000 and Parliament's resolution of 15 March 2000 [1] in advance of that European Council,

- having regard to the Kok report on growth and jobs submitted to the Council and the Commission on 3 November 2004,

- having regard to the Commission communication "Working together for growth and jobs — A new start for the Lisbon Strategy" (COM(2005)0024),

- having regard to the Presidency conclusions of the Brussels European Council of 22 and 23 March 2005,

- having regard to the Commission communication "Building our common future — Policy challenges and budgetary means of the enlarged Union 2007-2013" (COM(2004)0101) and the Commission communication "Financial perspectives 2007-2013" (COM(2004)0487),

- having regard to the proposal for a Council regulation laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund (COM(2004)0492),

- having regard to the proposal for a regulation of the European Parliament and of the Council on the European Regional Development Fund (COM(2004)0495),

- having regard to the Council decision of 20 December 2000 on a multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005) [2],

- having regard to the European Charter for Small Enterprises approved by the European Council in Santa Maria da Feira in June 2000,

- having regard to the Commission report on the implementation of the European Charter for Small Enterprises (COM(2005)0030),

- having regard to the Commission communication on implementation of the risk capital action plan (RCAP) (COM(2003)0654),

- having regard to the Commission communication "European governance: Better lawmaking" (COM(2002)0275),

- having regard to the Commission communication on impact assessment (COM(2002)0276),

- having regard to its resolution of 11 July 1991 on industrial policy in an open and competitive environment — guidelines for a Community approach [3], its resolution of 29 June 1995 on the Commission communication concerning an industrial competitiveness policy for the European Union [4] and its resolution of 23 October 2003 on industrial policy in an enlarged Europe [5],

- having regard to Rule 45 of its Rules of Procedure,

- having regard to the report of the Committee on Industry, Research and Energy and the opinion of the Committee on Employment and Social Affairs (A6-0148/2005),

A. stressing the importance of the EU's industrial sector as a source of jobs, wealth creation and service sector activities,

B. endorsing the Commission's approach, which is based on the vital need for European industry to be competitive and seeks to foster industrial change,

C. whereas the future of the industrial sector is tied closely to the growth in the services sector; services contribute to increased productivity of manufacturing and the growth in manufacturing fosters demand for services,

D. welcoming the launch of a new growth and employment strategy for the EU; recalling that the EU has fallen behind in the field of industrial policy and that swift and effective action is needed,

E. noting that enlargement has considerably altered the EU's industrial structure and that the pressure of international competition has grown,

F. noting the territorial dimension of industrial policy and the devastating effects of the phenomenon of industrial relocation; stressing the importance of the industrial reconversion of regions affected by economic restructuring,

G. whereas the EU is facing the huge demographic challenge of an ageing population which will have a clear impact upon the industrial sector including a decline in labour-market participation,

H. whereas achieving competitiveness depends on human resources and whereas industry also has a stake in providing more and better jobs,

I. whereas industry is not a single entity and a sector-by-sector approach will make it possible to assess competitiveness factors more effectively; whereas account must be taken of the nature, size and type of activity of enterprises, particularly small enterprises; mindful of the economic and social importance of small enterprises, which represent more than 95 % of enterprises in the Union and of their key role in implementing the Lisbon strategy,

J. noting that the modest nature of existing industrial policy instruments makes it difficult to steer industry towards advanced technologies; whereas a massive effort is needed in terms of public and private funding for research and development (R&D),

K. whereas it is vital to improve the legislative and regulatory framework under which enterprises operate as well as their access to Community programmes, while ensuring that account is taken of the needs of enterprises, including small ones, and at the same time taking due account of the need to alleviate legislative and administrative burdens,

L. having regard to the need for updated information on the situation of EU industry after 2004,

Setting objectives for European industrial policy

1. Welcomes the Commission's decision to make industrial policy a priority on the EU agenda;

2. Supports the promotion of a proactive industrial policy to foster and anticipate structural change and develop a sound and competitive European industrial base;

3. Appreciates the distinction drawn between deindustrialisation and structural change and agrees with the Commission's assessment (in COM(2004)0274) that "European industry is having to face up to a process of structural change which is beneficial overall and which should be encouraged"; notes, however, that the analysis of industrial change is incomplete and that there is no indisputable data on industrial relocalisations; considers, therefore, that the Commission should ask a group of experts, which should work closely with and draw heavily on the existing knowledge and expertise of the European Monitoring Centre on Change (EMCC), to draw up a report on the subject for the European Council;

4. Considers that boosting the quantity and quality of jobs must be one of the most important industrial policy objectives; considers it vital to make industry more attractive to young people; calls for efforts to be made to provide information on industrial trades and skills, together with a European policy on recognition of qualifications and lifelong learning; calls on the Social Partners to contribute to this goal and to take their share of responsibility for promoting joint action;

5. Considers that the social dialogue should help to identify the best-performing sectors and the most threatened sectors; to that end, a European conference on industrial development conference bringing together the partners involved in the social dialogue, in particular the Dublin Foundation, which has an expertise in social dialogue and exchange of best practices and produces sectoral studies, could provide a forum for regular meetings between these players and the Commission;

6. Notes that employment in the industrial sector tends to be male dominated; would like to see women encouraged to train for industrial careers as part of the Commission's commitment to lifelong learning;

7. Calls for stronger efforts in the development of human resources, which, with its potential for innovation, will contribute to the long-term competitiveness of industry; considers it vital to make industry more attractive to young people; calls for efforts to be made to provide information on industrial trades and skills, together with a European policy on recognition of qualifications and lifelong learning;

8. Wants to see an industrial policy that will enable European "industrial champions" to emerge;

9. Considers that European research policy instruments, such as technology platforms and technology initiatives, should be used to promote the competitiveness of industry;

10. Considers that European industrial policy should strengthen industry's capacity for innovation, including technical, technological and commercial innovation;

11. Considers that increasing competition from the emerging economies should encourage the public authorities to create favourable conditions for the emergence of new areas of production or productive combinations that generate added value and high-quality jobs and secure a comparative advantage for the EU;

12. Considers that EU industrial policy should lead to balanced development, by maintaining social cohesion;

13. Maintains that in the process of fostering and anticipating structural change, economic and social stakeholders must play a role enabling them to enter into agreements to promote innovative working patterns and provide workers with the training they need in order to adapt;

Taking account of the different dimensions of European industrial policy

14. Endorses the Commission's sectoral approach and hopes it will carry out independent and objective competitiveness assessments by individual sector that include assessments of competitive strength in these sectors in a global context; calls for these sectoral analyses to take into account employment and the impact of industry on employment catchment areas and assess environmental and social issues; considers that these analyses should serve to identify and anticipate the needs which industry will face;

15. Considers that to ensure that the competitive assessments by individual sector are useful and take due account of employment issues, social partners should be consulted and, if possible, invited to participate in the preparation of the assessments;

16. Calls for the sectoral approach to take into account the role in terms of production and outsourcing to be played by SMEs, and small and medium sized industries (SMIs) by creating cooperative chains; also calls for this approach to take into account micro-enterprises which represent more than 92 % of enterprises in the EU; reiterates the importance of the European Charter for Small Enterprises and its request that it be given legal force; calls for a Council decision to this effect;

17. Regrets that the Commission has failed to make the efforts needed to help the sectors and regions particularly affected by industrial change, as the public authorities have the task of implementing short-term policies specifically targeted at the employees, regions and sectors concerned; the structural funds, in particular the European Social Fund, could be channelled in this direction;

18. Stresses the role of industry in giving structure to European territory; calls on the Commission to take account of this in the negotiations on the Structural Funds and the Framework Programme; wishes to see substantial resources earmarked for the creation and development of poles of competitiveness and competitive industrial clusters; at the same time, stresses that quality of output is as important as the amount of money invested in these funds;

19. Suggests that specific measures be adopted in sectors particularly vulnerable to relocations, distinguishing between relocations within the EU and those beyond its frontiers, and treating distinctly sectors with comparative advantages and/or advanced technologies on the basis of a Commission report which, inter alia, takes into consideration the social and regional impact of those factors;

20. Is concerned at the lack of available data on industry in the new Member States; calls on the Commission to draw up an industrial inventory, together with an action plan, in order to tackle the threats to industry and employment in those states; calls on the Commission to take specific measures to monitor the internal market acquis in those countries; underlines the lack of knowledge about small enterprises, particularly those engaged in craft trades, throughout the Member States, including the old ones, and reiterates its request for statistical and economic studies and analyses concerning these enterprises;

21. Highlights the Commission's key conclusion that regulatory simplification is necessary to maintain the still fragile competitiveness of the new Member States, and considers that this requirement for a lighter legislative touch should apply to all Member States if overall competitiveness is to be enhanced and real employment growth secured;

22. Draws attention to the major challenge that will face the Union with the forthcoming retirements of employers and stresses that millions of jobs are at stake; asks the Commission and the Council to draw up a Community strategy agreed with the organisations representing enterprises to encourage ownership succession for existing viable enterprises;

A method and a regulatory framework to serve our industrial ambitions

23. Considers that industrial policy should form a part of the revised Lisbon strategy and calls for the industrial dimension to be taken into account in the strategy's three pillars;

24. Welcomes the proposed action programme to achieve the Lisbon objectives and stresses that it should include specific targets for the Member States; considers, however, that the ten thematic priorities selected do not currently take sufficient account of the challenges facing industry;

25. Believes that better utilisation of the synergies between the various Community policies that impact on industrial competitiveness will be possible only if this objective is spelt out in the action programme for achieving the Lisbon objectives;

26. Sees the Commission's commitment to better lawmaking as a priority; calls for the European Parliament and the Council to contribute to this effort; calls on the Commission and the Member States to set specific objectives for simplifying and fully implementing the existing regulatory framework on a sector-by-sector basis;

27. Calls for the procedure used for assessing the impact of new regulatory measures to be improved; regrets the fact that these procedures are limited to enterprises in general and do not analyse the impact on small and micro-enterprises despite their importance; regrets also the lack of transparency in these procedures and the fact that it is impossible for the organisations representing enterprises to respond to the impact analyses; expects the Commission to adopt a clear and transparent method for conducting these procedures that includes the efficient involvement of the relevant industrial actors;

28. Insists that the Commission consult all social partners, especially trade unions;

29. Emphasises the need for a stable macroeconomic framework on which enterprises can base their own economic forecasts; considers it useful, therefore, to make greater use of the Broad Economic Policy Guidelines (BEPGs) and the European Employment Policy Guidelines (EEPG);

Instruments to support European industry

30. Stresses that many existing instruments are not straightforward enough to be used by all enterprises; stresses the importance of measures to reduce the administrative burden on SME; notes that small enterprises still derive only limited benefit from existing Community programmes on account of their complexity, the guarantees required or administrative difficulties; calls on the Commission to improve them and enter into consultation with the organisations representing enterprises with a view to enhancing their efficiency, especially as regards widening the possibilities for R & D transfer to SMEs and, with the support of the Member States, arranging for targeted information campaigns;

31. Calls for the 7th Framework Programme for research and development to map out a clear long-term strategy to strengthen industry's capacity for innovation, including that of SMEs; supports the development of long-term industrial technology programmes, bringing together public and private partners;

32. Calls for technology platforms to be further boosted, given that they are an essential means of support for innovation and European industry; believes that technology platforms should be designed to allow for the structure of European industry, consisting first and foremost of SMEs;

33. Stresses the competitiveness problem of the European economy, which is partly the result of a mismatch between the generation of scientific knowledge (of which there is an adequate supply in the EU) and the inadequate ability to transform this knowledge into innovation and, especially, production; considers that industry's participation in the allocation of financial support priorities may improve this situation, and efforts must therefore be made towards the participation of industry, and the improvement of the position of SMEs, in the 7th Framework Programme;

34. Asks the Commission to study possible ways of consolidating, through the 7th Framework Programme, the existing networks of enterprises and the Eureka programme in which enterprises are broadly represented;

35. Expects the multiannual competitiveness and innovation programme to offer support for the development of small European enterprises and to serve as an instrument for implementing the European Charter for Small Enterprises; considers that this would enable these enterprises to be genuinely included in the EU's industrial strategy;

36. Supports the aim of reducing the global volume of aid to enterprises, but points to the usefulness of certain types of aid in offsetting shortcomings in the market, such as aid for research and development, for training, particularly professional training and apprenticeship, for advisory services and for economic development assistance for enterprises; considers it vital to make industry more attractive to young people, for example through aid for research and development and information on industrial trades and skills together with a European policy on recognition of qualifications and lifelong learning; is concerned at the planned total abolition, with a few exceptions, of regional aid for large enterprises outside areas currently eligible under Article 87(3) of the Treaty;

37. Considers that in the context of full and effective international competition an increasingly well-qualified and competitive workforce is needed;

38. Takes the view that education and training should be given priority, in particular as regards new technologies, with a view to promoting competitiveness and employment; to that end, the Member States could carry out an objective evaluation of their education and training systems;

39. Urges that efforts be made to support a more effective research and innovation policy by giving consideration to flanking policies, such as the completion of the Internal Market, and the establishment of a cheaper, more flexible patent policy with better access for SMEs;

40. Notes the importance of State Aid to SMEs in the Member States; calls on the Commission to maintain within the Structural Funds all aid instruments for the economic and socio-economic reconversion of regions affected by industrial relocation; urges better consideration for small and micro-enterprises in these regions and, more generally, in all cohesion policies; to this end, asks the Commission and the Council to integrate the recommendations of the European Charter for Small Enterprises into the priorities of the objectives of convergence, competitiveness and cooperation;

41. Expects a clearly formulated and effective framework for intellectual property and wishes to see the successful adoption of the directives on respect for intellectual property rights and on the Community patent;

42. Believes that the development of accompanying measures is essential to helping our industries to conquer markets outside the EU and thus take an active share in the growth of the emerging countries;

43. Calls on the Commission to determine the means (the creation of venture capital funds, for example) to employ, not least at Union level, to promote the emergence of new enterprises, especially in the new technology sector, and encourage measures leading to business spin-offs;

44. Supports the recommendations for enabling enterprises to develop internationally; wishes to see them apply also to small and medium-sized enterprises; requests the Commission to resort to the defence mechanisms provided by the WTO where a European industrial sector is the victim of illegal commercial practices;

45. Stresses that the fragmentary nature of European financial markets is an obstacle to the sound functioning of risk capital markets and considers it a priority to remedy this in order to give enterprises easier access to sources of finance for enterprises; draws attention to the need to encourage access by enterprises to financial instruments and to develop the availability of financing along the lines of mutual guarantee schemes; calls for the development of innovative financing arrangements in order to respond to the new tangible and intangible investment needs of enterprises, including small and micro-enterprises, particularly in the areas of standards, technologies, the environment and market development; calls for measures to promote the connection between equity capital and funds and for work towards linking funds, enterprises, industry and universities; calls for particular attention to be paid in this regard to instruments targeted at SMEs;

46. Considers that, where markets are incomplete, the public authorities should encourage the development of activities in areas where the risks would be considered too great by economic actors; in that context, there is also an urgent need to identify high-value-added sectors, in particular in new technologies, which the public authorities could promote with a view to securing high-quality jobs; also considers it their duty to develop research and innovation activities as a source of positive external effects;

47. Maintains that an effective industrial policy has to assume a global dimension and hopes that the new generation of Union external assistance programmes for the period from 2007 to 2013 will be used in a strategically appropriate way to promote and support the internationalisation of European industry, especially SMEs, in the markets of non-member countries;

48. Expects the importance and needs of European industry, and particularly of SMEs to be taken into account in the drafting of the new Financial Perspective for the period 2007-2013;

49. Believes that the communication infrastructure and the logistic system play a crucial role in promoting industrial development and economic integration in the enlarged Union; considers it essential that the trans-European transport network, especially the cross-border sections, is completed rapidly and hopes that the necessary support will be provided under the Community budget in the period from 2007 to 2013;

50. Proposes, as part of the plan to reform State aid arrangements, that a clear-cut approach be laid down with a view to fostering innovation, which cuts across all sectors, under the heading of the Lisbon objectives; considers that innovation, which should be understood in the broader sense and not confined solely to the technological aspects, must constitute a fundamental objective of Community strategy for industrial policy;

51. Draws attention to the need to encourage all initiatives intended to enable enterprises to grow to the scale needed for them to compete more effectively on the global market;

52. Calls on the Commission to evaluate regularly, in particular in terms of jobs created, the results of policies to encourage research and development activities, since the financial level is not the only level to be analysed.

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53. Instructs its President to forward this resolution to the Council, the Commission, and the governments and parliaments of the Member States.

[1] OJ C 377, 29.12.2000, p. 164.

[2] OJ L 333, 29.12.2000, p. 84.

[3] OJ C 240, 16.9.1991, p. 213.

[4] OJ C 183, 17.7.1995, p. 26.

[5] OJ C 82 E, 1.4.2004, p. 627.

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