Council Conclusions of 13 May 2003 on "industrial competitiveness in an enlarged Europe"
Date: 2003-05-13
Institutions: Council of the European Union
Subjects: EU industrial policy, competitiveness, enlargement of the Union, industrial enterprise

26.6.2003

EN

Official Journal of the European Union

C 149/1

I

(Information)

COUNCIL

COUNCIL CONCLUSIONS

of 13 May 2003

on ‘industrial competitiveness in an enlarged Europe’

(2003/C 149/01)

THE COUNCIL OF THE EUROPEAN UNION,

1. RECALLING:

— the conclusions of the Lisbon European Council on the
strategy for making the EU the world's most competitive
and dynamic knowledge-based economy, capable of
sustainable economic growth with more and better
jobs and greater social cohesion by 2010 and the
further elaboration of this strategy by the Stockholm,
Gothenburg and Barcelona European Councils;

— the conclusions of the Barcelona Council which agreed
that overall spending on R & D and innovation in the
Union should be increased with the aim of approaching
3 % of GDP by 2010;

2. WELCOMES the Commission's Communication on ‘Industrial
Policy in an Enlarged Europe’, which stresses the importance
of the contribution of industry to competitiveness.

3. RECOGNISES:

— that the slowdown in productivity growth in the EU
presents a challenge to attaining the goals of
the
Lisbon strategy and requires effective action to be
taken in response;

— the opportunities and the challenges in the industrial
sector, arising from the enlargement of the European
Union, as well as those resulting in particular from tech-
change, new societal
nological
increased
demands
recognising
competition
different global framework conditions;

and organisational
globalisation,
and
in world markets;

including
also

— the conclusions of the Seville European Council which
welcomed the Action Plan for simplifying and improving
the regulatory environment;

— the vital role industry has to play in implementing the
objectives defined at the Lisbon European Council and in
the framework of
the European Union's strategy for
sustainable development;

— the conclusions of the Copenhagen European Council

concerning enlargement;

— the Council conclusions of 3 March 2003 on the

promotion of entrepreneurship and small firms;

— the need to re-examine industrial competitiveness policy,
reflected in various Council resolutions and conclusions
and/or in several Commission papers and communi-
cations, with a view to adapting it to current circum-
role in
stances, as part of
ensuring an integrated approach to the enhancement
of competitiveness and growth.

the Council's horizontal

— the contribution of the Competitiveness Council to the
Spring European Council 2003 adopted on 3 March
2003;

4. EMPHASISES:

— the conclusions of the Brussels European Council of 20
and 21 March 2003, which noted that
in boosting
European competitiveness, a new approach to industrial
policy will be important.

securing

— that industrial policy is horizontal in nature and involves
the application of enterprise policy instruments. It aims
at
to
industrial competitiveness, while taking into account
the specific needs and characteristics of
individual
sectors;

framework

conditions

favourable

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— that

the coherence between the different Community
policies requires that
the balance between the three
pillars of sustainable development — economic, social
and environmental — is such that competitiveness is
improved;

— the need to encourage enterprises, to make effective use
of information and communication technologies, new
management
training to
techniques and manpower
improve substantially productivity, and to invest more
in R & D and innovation.

— that an effective industrial policy implies the search for
the appropriate balance between the different objectives
of Community policies that have an impact on the
competitiveness of industry;

— the importance of actively pursuing efforts to develop
innovation and entrepreneurship as key

knowledge,
factors affecting industrial competitiveness;

— that due attention should be given to the needs of small
industrial

firms in the conception and application of
policy;

— the interdependence of industry and services and their
importance for EU competitiveness, bearing in mind the
specific needs of SMEs;

— that a high level of

training and
education, are core aspects of the knowledge economy
as well as of competitiveness;

social cohesion,

— the importance of competition policy in reinforcing
global industrial competitiveness, while ensuring comple-
mentarity and synergies between competition and
industrial policy;

— the importance of the early implementation of the action

plan on risk capital along the EU;

— the importance of ensuring the full implementation of
the

the internal market,
for
creation and development of businesses in Europe;

including for

services,

— that a well developed infrastructure and integrated
energy, transport and telecommunications networks are
essential for the good functioning of the internal market
and for
in view of
enlargement.
the targets set by the
Barcelona European Council must be fully met, taking
due account of services of general interest;

competitiveness,

In this respect

in particular

— that

the

frameworks,

and instruments,
necessary to the business environment and for industry
are in place and function efficiently;

institutions

5. INVITES THE MEMBER STATES AND ACCEDING COUNTRIES TO:

— contribute

actively,

instruments of
industrial policy, to implementing the objectives of the
Lisbon strategy and the sustainable development strategy;

through their

— strive to improve the coherence between different
national and regional policies having an impact on
industrial competitiveness;

— apply, where appropriate, the principle of ‘think small
first’ when designing new or reviewing existing legal
instruments;

— contribute to increasing the competitiveness of European
industry by undertaking systematic impact assessment
taking
and legal
systems, as well as consultation on future legislation,
notably by ensuring full involvement of stakeholders;

into account national practices

— ensure that innovation and research are encouraged by
facilitating and stimulating the emergence of innovative
clusters and networks, thus contributing to industrial
the
competitiveness
environment for entrepreneurship;

improvement of

and to the

— take all necessary steps to ensure a sustained and
internal
measurable
market function, in particular by speeding up the trans-
position of relevant Community legislation;

in the way the

improvement

— continue their efforts to enforce competition policy and
level of State aid and redirect it
to reduce the overall
towards horizontal objectives of
common interest,
including cohesion objectives, and inter alia, R & D and
innovation.

6. INVITES THE COMMISSION TO:

— intensify the work on a new approach to industrial

policy;

— report, on a regular basis, on the progress and especially
on the means of improving the integration of different
Community policies having an impact on industrial
competitiveness;

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‘think small

— pursue its work on the action plan ‘Simplifying and
integrating the
improving the regulatory environment’,
first’ and improving regulation
concept
affecting competitiveness,
including the new approach
to product policy and developing European standards,
and to assess, where appropriate, the use of alternatives
to legislation to avoid excessive administrative burdens;

— continue developing the extended impact assessment and
systematic consultation of interested parties on all major
proposed EU legislation to ensure a balanced approach
to the policies affecting the competitiveness of enter-
prises and to ensure that European enterprises operate
on a level playing field in the global economy;

— inform the Council as early as possible about proposals
which will be subject to an extended impact assessment
and, when available, about the results thereof, thus facili-
tating the identification of those proposals considered
likely to have a substantial effect on competitiveness;

— examine

the

competitiveness of

sectors,
to important competitive challenges
currently subject
and propose,
to
if necessary, any useful
improve their competitiveness, keeping in mind the
SME dimension;

initiatives

industrial

— examine

the operating

emerging
industries in order to stimulate economic activity and
new global leadership based on emerging technologies;

environment

for

— analyse the needs and specific characteristics of industry
and the impact of enlargement on competitiveness and
take account of
the findings when proposing new
initiatives;

— examine in the wider context of

the Commission's
the contribution of services to the

services strategy,
competitiveness of European industry.

7. INVITES THE MEMBER STATES, ACCEDING COUNTRIES AND

THE COMMISSION TO:

— exchange on a regular basis

information on their
respective industrial and competitiveness policies and
the Best Procedure to identify
build on the use of
critical factors and propose policy recommendations;

— examine ways of developing synergies and, by focussing
improve the exchange of
on concrete implementation,
information and best practice in the different domains
relating to industrial policy, taking into account national
and regional specificities, and applying an open method
of coordination, which includes a peer review process,
on a voluntary basis;

— establish, within the context of the Council's ongoing
work on an integrated strategy for competitiveness, a
roadmap on the concrete ways in which industrial
policy can contribute to achieving the Lisbon objectives,
particularly in the framework of a sustainable devel-
opment strategy, and monitor progress.