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Document 52012DC0582
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth and Economic Recovery Industrial Policy Communication Update
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth and Economic Recovery Industrial Policy Communication Update
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth and Economic Recovery Industrial Policy Communication Update
/* COM/2012/0582 final */
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth and Economic Recovery Industrial Policy Communication Update /* COM/2012/0582 final */
TABLE OF CONTENTS COMMUNICATION FROM THE COMMISSION TO THE
EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE
AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth and
Economic Recovery................. Error! Bookmark not defined. I............ The Partnership for a stronger
European Industry............................................................ 3 II........... The policy and economic
context: a central role for Industry............................................. 4 III.......... The pillars for a reinforced
industrial policy: investment in innovation, better market conditions, access
to capital and human capital and skills............................................................................................ 6 A........... Facilitate investment in new
technologies and innovation................................................... 6 1. Priority Action Lines................................................................................................................. 8 i) Markets for advanced manufacturing
technologies for clean production....................................... 8 ii) Markets for key enabling technologies....................................................................................... 8 iii) Bio-based product markets...................................................................................................... 9 iv) Sustainable industrial policy,
construction and raw materials..................................................... 10 v) Clean vehicles and vessels....................................................................................................... 11 vi) Smart grids............................................................................................................................ 12 2. Accompanying measures......................................................................................................... 13 B........... Access to markets........................................................................................................ 15 1. Improving the Internal Market for goods.................................................................................. 15 2. Fostering entrepreneurship to render the
Internal Market more dynamic................................... 18 3. The Internal Market for technology, the
unitary patent and the protection of intellectual property rights 18 4. International markets............................................................................................................... 20 C........... Access to finance and capital
markets........................................................................... 22 1........... Public sector support to
facilitate access to capital to industry........................................ 23 2. Access to capital markets........................................................................................................ 24 D........... The crucial role of human
capital................................................................................... 25 IV......... Conclusion: governance and goals................................................................................. 27 COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS A Stronger European Industry for Growth
and Economic Recovery Industrial Policy Communication
Update I. The
Partnership for a stronger European Industry At a time when financial problems persist,
Europe needs its real economy more than ever to underpin the recovery of economic
growth and jobs. Our industry is well placed to assume this role: Europe is a
world-leader in many strategic sectors such as automotive, aeronautics,
engineering, space, chemicals and pharmaceuticals. Industry still accounts for
4/5 of Europe's exports and 80% of private sector R&D investment comes from
manufacturing[1].
However, the continuing economic crisis has
put Europe's industry under pressure: production is 10% lower than before the
crisis and over 3 million industrial jobs have been lost. Consumer and business
confidence are low. Problems in the banking sector make it difficult to access
finance. Investments are held back and factories are under pressure to close. This is happening at a time when the speed
of innovation and technological development has put the world on the edge of an
industrial break-through. Several new technology areas are converging to lay
the foundation of the new industrial revolution based on green energy, clean transport,
new production methods, novel materials and smart communication systems. These
will change the global industrial landscape and our competitors in the U.S. and
Asia are investing heavily in these areas. Europe needs new industrial
investment at the time when lack of confidence, market uncertainty, financing
problems and skills shortages are holding it back. Europe needs to reverse the declining
role of industry in Europe for the 21st century. This is the only way to deliver sustainable growth, create
high-value jobs and solve the societal challenges that we face. To achieve
this, a comprehensive vision is needed, focusing on investment and on
innovation, but also mobilising all the levers available at EU level, notably
the single market, trade policy, SME policy, competition policy,
environmental and research policy in favour or European companies'
competitiveness. This Communication proposes a partnership
between the EU, its Member States and industry to dramatically step up
investment into new technologies and give Europe a competitive lead in the new industrial
revolution. After an extensive public consultation, the Commission proposes to jointly
focus investment and innovation on six priority action lines: advanced
manufacturing technologies, key enabling technologies, bio-based products, sustainable
industrial and construction policy and raw materials, clean vehicles, smart grids. The Commission outlines the approach it
will take in each of these areas through setting up specialised partnership task-forces.
It shows how the EU will bring into play policy levers to support the
reindustrialisation of Europe by mobilising all instruments at its disposal in
an integrated way. Industry is expected to play its part by rolling out the
necessary investments and products while Member States and regional authorities
should adapt these priorities according to their national needs.[2] The joint action of industry
and public authorities should also contribute to reduce competitiveness gaps
across the Member States and EU regions. Second, the actions proposed here aim to
bring renewed dynamism in growth promising areas, namely the Single Market
and international markets. It will not be possible to stimulate new
investments if there are doubts about the ability to sell them or fear of
unlawful appropriation of technological know-how. Substantial progress has
already been made in unlocking the potential of internal and external markets
through improved market access to companies. The Commission therefore
concentrates on selected themes where significant scope for improvement still exists:
reducing of costs, increasing confidence, fostering entrepreneurship and
protecting intellectual property. Third, the Commission addresses two areas weakened
by the economic crisis and the fast-changing industrial landscape. Innovative
investments are not possible without financing. The economic crisis and
difficulties in the banking sector have had a negative impact on lending to
the real economy and this Communication proposes a series of measures to
remedy this situation. In addition, new technologies cannot be developed and
brought to the market if the European work-force does not possess the necessary
skills. The Commission therefore reinforces its strategy through a series
of measures to equip Europeans for the future and facilitate industrial
restructuring. With the renewed industrial strategy
outlined in this Communication, the Commission seeks to reverse the declining
role of industry in Europe from its current level of around 16%[3] of GDP to as
much as 20% by 2020. This should be driven by substantial recovery in
investment levels (gross capital formation and investment in equipment), an
expansion of the trade in goods in the Internal Market (to reach 25% of GDP in
2020) and a significant increase in the number of SMEs exporting to third
countries. II. The
policy and economic context: a central role for Industry This Communication builds on, and updates,
the "Integrated Industrial Policy for the Globalisation Era"[4] adopted by the Commission in 2010
as part of the Europe 2020 Strategy. It focused on strengthening industrial
competitiveness to support economic recovery and to enable the transition to a
low-carbon and resource-efficient economy. The strategic approach proposed in
2010 remains fully valid for achieving our longer term objectives and very good
progress has been made in its implementation.[5]
However, the harsh impact of the economic crisis on several Member
States, the subsequent economic stagnation in the EU and the deteriorating
outlook for the global economy have given a new urgency to this Mid-term
Review of the Industrial Policy[6]. This year's Annual Growth Survey has
underlined that growth-enhancing measures are needed to
strengthen the recovery, to keep pace with our main competitors and to move
towards the Europe 2020 objectives. A series of European Councils in 2011 and
2012 have called for action on areas addressed by this Communication, which was
announced in President Barroso's State of the Union speech on 12th September
2012. This renewed industrial strategy is part of the response to these calls,
in particular following the "Compact and Growth and Jobs" at the European Council of June 2012. The political attention on industry is
grounded in the realisation that a strong industrial base is essential for a
wealthy and economically successful Europe. It is vital to stimulate
economic recovery, provide high-quality jobs and reinforce our global
competitiveness. Industry can generate the high productivity growth needed to
restart sustainable growth: industrial productivity rose by 35% since the worst
times of the crisis in 2009. Moreover, only industry can improve economy-wide
energy- and resource-efficiency in the face of global resource scarcities and
help provide solutions to societal challenges. New investment is now urgently needed to
stimulate economic recovery and bring innovation and new technologies back onto
factory floors. If Europe does not keep up with investment in the adoption and
diffusion of these technologies, its future competitiveness will be seriously
compromised. However, the investment outlook is bleak.[7] Between 2008 and 2011,
investment fell by 2.5 percentage points of GDP and current economic forecasts
predict only a slow recovery. Revitalising investment requires business
confidence, market demand, finance and skills, the four pillars of our policy. Affordable and reliable access to energy
and raw materials are becoming increasingly important as they account for a significant
part of the cost in many industries. Energy prices for European industry went
up by 27% in real terms between 2005 and early 2012, which is higher than in
most of other industrialised countries, especially US. As regards electricity,
European industry is on average facing higher prices than industries in other
developed economies such as the US, Canada, Mexico and Korea, and this price
gap has increased over the last decade[8].
The impact on the price of energy in Europe should be
carefully considered when defining future energy policies. Effective implementation of a fully efficient internal market for
energy, more investments in energy infrastructure, further diversification of
energy sources as well as increased energy efficiency are the key elements in
this respect. Competition in manufacturing will in the
future gradually decrease its dependence on wage differentials[9] thus our industry has a good
chance to restore the attractiveness of Europe as a location for
production, provided it can capitalise on opportunities offered by new
technologies and the size of the EU market. III. The
pillars for a reinforced industrial policy: investment in innovation, better
market conditions, access to capital and human capital and skills The Commission proposes a proactive
approach to industrial policy based on the following four main elements. 1. First, the EU must provide
the right framework conditions to stimulate new investments, speed up
the adoption of new technologies and boost resource efficiency. These include technical
regulations and Internal Market rules, as well as accompanying measures such as
infrastructure and R&D/innovation projects. As a first step, six
priority areas for immediate action are proposed in this Communication. 2. Secondly, urgent improvements
in the functioning of the Internal Market are needed. They are presented
here and in the Single Market Act II, and are reflected in the country-specific
recommendations issued to Member States in the context of the European
Semester. They will contribute to reinvigorate trade in the Internal Market.
Opening up international markets will also speed up recovery. The
fast-growing emerging economies of the world offer new export opportunities for
EU firms, especially SMEs. 3. Investment and innovation
are not possible without adequate access to finance. Public resources
have already been mobilised to sustain investment in innovation, especially by
SMEs. However, only unlocking private funds can ensure the level and
sustainability needed to finance investment by EU companies. Improving access
to capital markets is therefore another crucial challenge to increase our
competitiveness. 4. Finally, accompanying
measures to increase investment in human capital and skills are key to
the success of industrial policy. Policies aimed at job creation and tools to
anticipate skills needs are necessary to equip the labour force for industrial
transformations. This approach focuses on improving
framework conditions that reinforce the growth potential of EU industry. It is
fully mindful of the need to stimulate competition for an efficient allocation
of resources and a dynamic economy. Public intervention should create the right
market environment and come up with remedies to market failures. Industry must
itself develop its competitive advantages and strengths. The objective of
industrial policy is to foster competitiveness, but businesses themselves will
always be ultimately responsible for determining their success or failure in
the global market. A. Facilitate
investment in new technologies and innovation R&D is by far the most important driver
for company innovations. The Commission considers R&D policies as a
priority as outlined in the Innovation Union flagship.[10] However, despite the fact that
European research has been excellent and has been responsible for many
new technologies used in industries worldwide, our past record has not
always been so good when it comes to translating scientific leadership into
industrial advantage. The situation in lithium batteries is a clear example
of this with European firms holding more than 30% of the relevant patents,
without any production of such batteries taking place in the EU. Investing in the early stages of the
adoption and diffusion of new technologies will give us a technological lead to
ensure that Europe secures the returns from its innovation in terms of growth
and jobs. "First mover advantage" can boost productivity,
resource efficiency, and market shares. Unfortunately, the stakeholder
consultation shows that uncertainties about the future evolution of new markets
often adversely affect business confidence and hold back investment. It is thus
essential to dispel the uncertainties in new markets through the creation of a simple,
stable and predictable long-term framework of Internal Market technical
rules, standards and other legislation. After extensive public consultation and
analysis, six fast-growing initial areas for priority action have been
selected. These priority areas can both contribute to economic recovery in the
short- and medium-term and have a significant impact on our longer-term growth.
They will provide the industrial infrastructure needed for what has been
identified as a "Third Industrial Revolution".[11] The establishment of this
infrastructure has the potential to create thousands of new businesses and
millions of new jobs and lay the basis for a sustainable global economy in the
21st century. The priority action lines encompass the key components needed for
a new industrial society, where new energy, information and production
technologies will transform industrial production and markets. Nowhere will the
impact be more profoundly felt than in the six priority areas identified.
Investment in new technologies in these areas will help deliver the Europe 2020
goal of a sustainable and high-employment economy. The priority areas are highly correlated
with the areas of investment for Cohesion policy 2014-2020[12]. They are all markets where
new technologies are ready to deliver new products or increase productivity.
These new technologies will revolutionize engineering (e.g. intelligent
materials) and transform the production of goods (e.g. 3D printing), as well as
providing game-changing new foundations for traditional markets, such as smart
grids, clean vehicles or bio-based plastics. Therefore Member States must take
them into account in their industrial policies, as well as in their strategies
for social cohesion and economic development of their regions. Of course, the focus on these priorities
does not imply the neglect of other sectoral efforts currently underway as part
of our industrial policy flagship defined in 2010. For instance, the review of
LeaderSHIP 2015 strategy will help to improve the competitiveness of EU
shipbuilding industry which contributes to sustainable sea-borne transport,
infrastructure and advances into maritime energy generation. A High Level Roundtable on the future of the
European steel sector will identify
the factors affecting the competitiveness of this industry and issue concrete
recommendations to maintain its competitiveness. This
proactive approach to industrial policy will be extended to other key areas
such as creative industries, space, technologies for improved health care in
particular for the ageing population, medical devices and tourism. 1. Priority Action Lines i) Markets for advanced manufacturing technologies for
clean production Advanced manufacturing technologies that
enable clean production are a key part of the new industrial revolution. For
example, 3-D printing allows production in much smaller quantities than is
currently economically feasible, enabling low-cost customised production for
new niche products and opening up new market opportunities for innovative SMEs.
Tomorrow's factories will use highly energy- and material-efficient processes, employ
renewable and recycled materials,
and increasingly adopt sustainable business models such as industrial symbiosis
to recover materials and dissipated
heat and energy. These technologies represent an important business
opportunity, with a global market that is expected to double in size to over
€ 750 billion by 2020. EU industry is already a world-leader in these
technologies, with a world market share of over 35%[13] and a patent share of over 50%[14]. Policy co-ordination of EU and Member State
policies and stakeholder efforts could be enhanced through a dedicated Task
Force for Advanced Manufacturing Technologies for Clean Production. This would
provide leadership and co-ordination and ensure the wider dissemination and
commercialisation of the results of the public-private partnerships. It could
also promote demand-side innovation measures,[15]
including timely internal market regulation and standardisation, and innovative
public procurement. High cost and high risk investments in
proof-of-concept demonstration projects and pilot lines will require
public-private partnerships (PPPs) with industry at EU level to ensure timely
commercialisation. A major role may be played by Public Private Partnerships
under Horizon 2020, such as in the areas of robotics and of sustainable process
industries, along with demonstration projects for Key Enabling Technologies. The NER300 funding programme
for innovative low-carbon energy demonstration projects and the Sustainable
Industry Low Carbon (SILC) grant scheme supporting innovation in greenhouse gas
efficiency will also play an important role. The
Commission will lead a Task Force for Advanced Manufacturing Technologies for
Clean Production in 2013 to foster the development and adoption of these
technologies by European industry. Following industry consultations, the
Commission will assess the impacts of a potential Public Private Partnership in
the area of sustainable process industries. Member
States are invited to promote the commercialisation and deployment of advanced
manufacturing technologies and to develop cross-border collaboration taking
into account their national specialisations and needs. ii) Markets for key enabling technologies The global market in Key Enabling
Technologies (KETs), which comprises micro- and nanoelectronics, advanced
materials, industrial biotechnology, photonics, nanotechnology and advanced
manufacturing systems, is forecast to increase by over 50% from € 646
billion to over € 1 trillion by 2015, which is equivalent to around 8% of the
EU's GDP. Europe is a global leader in R&D for KETs, with a global patent
share of more than 30%. However, in the past the EU has often been slower than
our trading partners in converting research into marketable goods and services. A Communication[16] issued in June 2012 set out
the EU's strategy to speed up the development and industrial deployment of
KETs-based products. This new strategy is based on four pillars: the adaptation
and streamlining of EU policy instruments; better coordination of EU and Member
State policies in order to achieve synergies and complementarities; the
establishment of adequate and dedicated governance structures within and
outside the Commission to ensure effective implementation; and the mobilisation
of existing trade instruments to ensure fair competition and an international
level playing field. Attention will also be paid to the development of the
Internal Market for innovative products, in order to promote science and
technology-related skills and encourage KET-related entrepreneurship[17]. There is a need to examine
how to best maintain and develop a strong European supply basis for KETs, e.g.
for the components used in the telecommunications & IT sectors. The
Commission will implement the European Strategy for Key Enabling Technologies
ensuring better co-ordination of EU and Member State technology policies, the
funding of essential demonstration and pilot lines and cross-cutting KET projects,
and the timely development of the Internal Market for KET-based products.
Ensuring the industrial deployment of KETs will be a key component of relevant European
Innovation Partnerships. The
Member States and the regions are invited to exploit research and innovation
strategies for smart specialisation, to support development research including
pilot lines and demonstration projects and to promote co-operation along the
value chain. iii) Bio-based product markets Bio-based industries use renewable
resources or apply bio-based processes in their production processes. Bio-based
products offer several advantages for industrial competitiveness and the
environment. Compared with fossil fuel processes, most bio-based production
processes consume less energy, emit less carbon dioxide and volatile organic
compounds, and generate fewer toxic waste. They can both reduce production
costs and improve environmental performance. The volume growth of EU bio-based
chemical products up to 2020, including bio-plastics, bio-lubricants,
bio-solvents, bio-surfactants and chemical feedstock, is estimated at 5.3%
p.a., resulting in a market worth € 40 billion and providing over 90,000
jobs within the biochemical industry alone[18]. Establishing an Internal Market for
bio-based products requires the development of standards and the updating of
regulations[19].
CEN is already working on standardisation mandates for bio-fuels and bio-based
products in general, as well as on specific mandates for bio-polymers,
lubricants, solvents and surfactants[20].
An institutional Public Private Partnership
based on the Joint Technology Initiative approach on Bio-based Industries for
Growth could leverage private sector investment, facilitate the efficient and
sustainable scaling-up of biomass supplies, support large-scale bio-refinery
demonstration projects, promote Green public procurement, and develop new bio-based
products and materials. Innovative processes and technologies can facilitate
exploitation of currently unused crop residues and marine biomass. The
Commission will implement the bio-economy strategy and will foster markets for
bio-based products, speeding up the development of standards and their
international recognition, promoting labelling and green public procurement,
and will work with industry to develop detailed proposals for a bio-economy PPP
(2013-14 onwards). iv) Sustainable industrial policy, construction and raw materials Reducing costs, increasing energy and
resource efficiency and reducing waste will boost the competitiveness of the
construction sector. The energy used in residential,
commercial and public buildings accounts for 40% of the EU's final energy
consumption and contributes to CO2 emissions and air pollution. New investments
in energy efficiency in residential and public buildings
and infrastructure have strong growth potential and are expected to be worth
some €25-35 billion per year by 2020[21].
Moreover, it is proposed that a significant share of the Structural and
Cohesion Funds will support the shift towards the low-carbon economy. New European standards are needed for
sustainable construction products, processes and works in order to maintain a
coherent Internal Market for both products and services. The international
competitiveness of EU building services can be enhanced inter alia by ensuring
the international uptake of the Eurocodes construction standards. The
Energy-Efficient Buildings public-private partnership should accelerate the
transition from research to market. The Ecodesign directive[22] has set the requirements for a
number of energy-related products, including motors, pumps, fans and chillers.
Measures for other household goods and industrial equipment are underway.
Although energy has been the main resource targeted so far, the Directive foresees
improvements related to all environmental aspects, including interalia material
efficiency. It will be applied gradually to a wider range of industrial
products having significant environmental effects. Action also needs to be taken in order to
develop further EU-wide markets for waste recycling and to move towards a
closed-loop economy. New
European standards for graded qualities of recycled materials (e.g. metals,
wood and textiles) would also foster market development. Additional
demonstration projects for recycling, dismantling, and sorting technologies are
urgently needed for specific applications, such as the RECAP pilot project on
better recycling mixed plastics. Innovative technologies for waste and resource
management could also be promoted through the exchange of good practices.
Cohesion and Structural Funds and other public funding, incentive schemes and price
signals could increasingly promote recycling, reconditioning, and reuse in
preference to incineration. Non-energy non-agricultural raw materials
are vital for the competitiveness of EU industry. Innovation can help reduce
supply pressures. This can be achieved, for example, by developing advanced
extraction (including seabed mining) and processing methods, designing products
to facilitate high-quality recycling, and by enabling "urban mining".
The EU must improve co-operation and information sharing between Member States
on raw materials to achieve the critical mass needed to develop closed-loop
solutions for material value chains. The European
Innovation Partnership on Raw Materials[23]
will bring together all relevant stakeholders to accelerate the availability of
technological and other solutions to the market. The Commission will then
translate this Strategic Implementation Plan into an operational programme. New
European standards will be developed for sustainability criteria related to
construction products and processes and the international uptake of Eurocodes
will be promoted as part of the implementation of the Action Plan on
Sustainable Competitiveness of the Construction Sector in cooperation with the
Tripartite Strategic Forum[24](2013-14). To
accelerate the transition from research to market, concrete actions will be proposed within the framework of the
Energy-efficient Buildings public-private partnership and through a Communication
on Sustainable Buildings (2013). The
Commission will implement specific ecodesign regulations on industrial product, including in particular those having a significant impact on the
environment during their life cycle; support the
faster and cheaper delivery of ecodesign policy objectives through sectoral
voluntary agreements; jointly review the energy labelling directive and certain
aspects of the ecodesign directives to maximise their effectiveness; support
ecodesign advisory services through the Enterprise Europe Network to better
address the needs of SMEs (2012 onwards). The
Commission will further develop stable recycling markets and increase
collection rates through a planned review of
specific aspects of the EU's waste policy (in 2014) and through analysing existing extended producer responsibility schemes
with the aim of identifying the most cost-efficient schemes and defining best
practices and guidelines (2013/14). Following
the launch of the European Innovation Partnership on raw materials in November
2012, the Commission will develop an operational programme on raw materials based on the
Strategic Implementation Plan ( September 2013). Member
States are invited to develop strategies adapted to their national
specificities to promote recycling and develop low-energy buildings. v) Clean vehicles and vessels Vehicles with alternative powertrains
and/or using alternative fuels are a key stage towards sustainable mobility. Plug-in
electric vehicles and hybrids are expected to account for some 7% of the
market by 2020. Vehicles with combustion engines also will become
increasingly electrified. As well as stimulating growth and jobs, investments
in clean mobility can yield additional benefits, including improved air quality
and reduced health impacts. Wide coordination is needed in order to
develop markets for clean vehicles and ships. In particular, the deployment of
electrical mobility will require profound adaptations of industrial value
chains, business models, skills, and consumer attitudes, as well as setting up
recharging infrastructures. On-going standardisation activities for
interoperability and connectivity need to be concluded quickly and followed up
by further standards for vehicles and infrastructures. UNECE safety
requirements for all components and systems (including batteries) and EU
environmental regulations need to be adapted. International agreements on
standards and regulations notably in the UNECE framework will help to save
costs and speed up market growth. Cooperation with our largest trade partners
on standards, research and regulatory aspects will also help uptake, e.g. the
EU-US Workplan on eMobility adopted in the framework of the Transatlantic
Economic Council. Legislative proposals on smart grids, the
Trans-European transport network[25]
and on alternative fuel infrastructures should facilitate the roll out of
recharging/refuelling infrastructures, particularly in cities. Regional and
local authorities should also play a role in encouraging market uptake, e.g.
through infrastructure development, public procurement, and non-financial
incentives such as priority access to city centres. Following on from the Green
eMotion project, R&D and demonstration projects should be developed under
Horizon 2020, using Cohesion and Structural Funds, and by Member states, in
combination with EIB loans. Following
up the Final Report of the CARS21 Group, the Commission will coordinate all
policy actions supporting the market introduction of clean vehicles, including
the deployment of plug-in electric and hybrid vehicles by ensuring timely
regulation and standards, facilitating the roll out of recharging
infrastructure, and potentially providing seed funding for key R&D and
demonstration projects (CARS 2020 Communication by November 2012). As
announced in the 2011 White Paper on Transport[26], the Commission will issue an alternative fuels strategy, which
will also address an appropriate recharging/refuelling infrastructure. Building
upon current industry consultations, the Commission will assess detailed
proposals to follow up the Hydrogen and Fuel Cells PPP and the Green Cars PPP. Taking
into account national specificities and needs, Member States are invited to
support demonstration projects and develop appropriate infrastructures for
clean vehicles and vessels adapted to their needs and following recommendations
in the European Semester. The
Member States and the regions are invited to exploit research and innovation
strategies for smart specialisation, to support development research including
pilot lines and demonstration projects and to promote co-operation along the
value chain. vi) Smart grids Adequate infrastructure (including smart
grid, storage and balancing capacity solutions) is needed to integrate
renewable energy into the electricity system, contribute to energy efficiency,
and facilitate new demands, e.g. for electric vehicles. The Third Energy
Liberalisation Package set out requirements for the installation of intelligent
metering systems in at least 80% of households by 2020 as a first step towards
the deployment of smart grids in the EU, whilst the Smart
Grids Communication[27]
sets the overall policy framework to drive forward their deployment. Overall, by 2020, the EU will need to invest an estimated €60
billion in these grids, rising to around € 480
billion by 2035. It is essential to set up the right
framework conditions for industry to develop the technologies and production
capacities needed to deliver this investment[28].
In parallel, the EU must deliver the standards needed to ensure the
interoperability of smart grids across borders, as well as a common minimum set
of standards for meters and advanced metering infrastructures. The Commission
has already issued the mandate M/490 in 2011 to the European Standardisation
Organisations to develop a first set of Smart Grid standards by the end of
2012. Regular exchange of information takes place with international actors
such as the US National Institute for Standards and technology in order to
develop compatible standards where possible. A general framework for a broader
introduction of smart appliances still needs to be put in place, including for
the more efficient use of low voltage devices. Based on cost-benefit analysis,
key performance indicators for public procurement should be compiled to ensure
the recognition of potential benefits. The potential for integrated, efficient
and flexible small-scale combustion installations could be achieved through
timely setting of appropriate emissions standards. Finally, appropriate R&D
and innovation demonstration projects need to be developed through the European
Industrial Initiatives on Electricity Grids, the SET-plan, and the European
Innovation Partnership on Smart Cities and Communities.[29] Based on
the forthcoming report of the Task Force on Smart Grids, the Commission will
define further targets for the deployment of smart grid components, revise and
broaden standardisation mandates, develop guidance on key performance
indicators, and identify potential Projects of Common Interest[30] for
trans-European energy infrastructure (end-2012). 2. Accompanying measures The co-ordination bodies described above -
or new specialist task forces where appropriate - will need to coordinate
closely efforts with industry and Member States to deliver their policy
agendas. These groupings will have different structure and time scope depending
on the needs of the area of activity. However, all will bring together the
relevant stakeholders and public authorities to define the actions required to
accelerate the uptake of new technologies and investment.[31] · First, a simplified, predictable and stable Internal Market
regulatory framework for new products and services, including the
appropriate standards and certification, should be agreed and announced as soon
as possible. EU regulators and standardisation organisations need to develop timely
regulations and standards for new technologies before their first introduction
on to the market - the CEN standardisation mandates for electric vehicles and
bio-based products are good examples. The task forces will recommend
simplifications to the regulatory and administrative environment in their
respective market areas, especially to help SMEs. It has also been recommended
to Member States to simplify the regulatory environment in the European
Semester. ·
Infrastructure development must be coordinated
and synchronised with increases in production capacity. For example, investment in key EU energy infrastructures such as
smart grids and energy storage is essential to the wide adoption of renewable
energy, ICT, and the deployment of electric and hybrid vehicles. The provision
of adequate and efficient transport infrastructures, inter-operable logistics and
high-speed broadband networks are preconditions for industrial development.
Likewise, new industrial capacities in production technologies must be developed
in a timely manner, with investments in low energy and resource-efficient
machinery and equipment. ·
Thirdly, it is essential that R&D and
innovation efforts should be coordinated across the EU to ensure the timely
deployment and commercialisation of the technologies. In particular,
proof-of-concept demonstration projects and manufacturing pilot lines are
preconditions for the deployment of technologies on an industrial scale.
Private-public partnerships can provide the funding for such initiatives using
Structural funds or in the framework of Horizon 2020 and through other
Community programmes. Risk-capital funding from public and most significantly
from private sources can also be utilised. · In addition, the Commission will take complementary measures to
ensure that the necessary skills are available for the development of
these markets and to stimulate demand for the uptake of the new innovations. New working practices will help companies
to employ an ageing workforce and attract skilled people into manufacturing.
Novel technologies are changing the mix of jobs and
skills required. The Commission will promote the transformation of
workplaces that stimulate new forms of ‘active jobs’ and encourage the
development of new skills, including e-skills. Wider use of design, as well as other
non-technological innovations, is one of the key
drivers for developing high value products, increasing productivity and
improving resource efficiency. To enhance the role of
design in innovation, the European Design Leadership Board has developed a set
of proposals including: better access for companies to design; the promotion of
design-led innovation for manufacturing systems; the promotion of design
competencies; raising the profile of design in the EU research and innovation
system; the wider application of design in the public sector; and the
differentiation of European design at a global level. Innovation policy can leverage its impact
on economic growth by seamlessly combining the introduction of new technologies
and working practices with demand-oriented measures such as standardisation,
promoting the uptake of innovations in global supply chains or providing
regulatory incentives. Europe has experience in demand-side policies, such as
the successful Lead Market Initiative that developed market-specific roadmaps
and demand-side policy instruments. Recently, five European Innovation
Partnerships have been announced to co-ordinate demand-side and R&D policy
instruments. Following the call of the European Council
in March 2012, it is important to further promote demand-led innovation
and to create the best possible environment for entrepreneurs to commercialise
their ideas on the market. Starting in late 2012, the Commission will implement
a horizontal action plan with three consecutive phases to boost demand for
innovative European goods and services. The first phase
serves to identify markets, toolboxes and demand-driven
models. In the following phase, the Commission with stakeholders will develop
strategic roadmaps for demand-side actions in wider initiatives. In the final
phase, the actions set out in the strategic roadmaps of the second phase will
be implemented. In parallel, a new monitoring system will measure the impact of
demand-side policies and the implementation of the strategic roadmaps. The
Commission will develop and implement a horizontal action plan to boost the
demand for innovative European goods and services (2012 onwards). The
Commission will establish a learning network on workplace innovation in Europe
to promote labour productivity and the quality of jobs (2013) and will implement an action plan for accelerating the take-up of design
in innovation policy (2012 onwards). In 2013,
the Commission will launch an independent review to assess whether the European
standardisation system is able to adapt to the quickly evolving environment and
to contribute to Europe's strategic internal and external objectives. B. Access
to markets 1. Improving the Internal Market for goods The Internal Market for goods accounts for
75% of intra-EU trade and possesses enormous untapped potential to boost EU
competitiveness and growth. It is a key tool to achieve
a highly competitive social market economy. In
particular, globalisation, specialisation and innovation are having profound
impacts on manufacturing processes, while the distinction between “products”
and “services” is becoming increasingly blurred. However, this process may be
creating new barriers and hindrances. Single market rules and procedures thus
need to keep pace with these developments. Twenty years after the 1992
strategy, a wide range of products is still un-harmonised and mutual
recognition clauses in Member State legislation are not always correctly
applied. Next year, the Commission will conduct a critical evaluation of the acquis
for industrial products, including a study and extensive consultation, and will
produce a Roadmap for reform of the Internal Market for industrial products. Further progress needs to be made towards
the full internal market integration of certain sectors, such as security
and defence. Despite the implementation of the Defence package, the defence
sector still maintains a strongly national dimension and is therefore unable to
benefit from the potential economies of scale that are necessary to improve
competitiveness and profitability. Further EU-level research and innovation
initiatives are under preparation in the civilian security area. A Task Force
on Defence is helping to develop a comprehensive strategy for a world-leading
defence industry that is competitive both within and outside Europe. Likewise,
products and services based upon satellite data have a high potential for
economic growth, and their market development should be encouraged and
sustained. In 2010, as part of its Smart Regulation
strategy,[32]
the Commission developed Fitness Checks to assess the overall regulatory
framework in a particular policy area. These checks were designed to identify
excessive administrative burdens, examine regulatory overlaps, gaps and inconsistencies
and assess the cumulative impact of legislation. Their findings serve as a
basis for policy decisions on the future of the relevant regulatory framework.
Fitness checks are underway in specific policy areas, such as the information
and consultation of workers, the type-approval of motor vehicles and EU
environmental freshwater policy. However, the ambition to take an overview of
the main policies affecting a single economic sector has not yet been put into
effect. The Commission will therefore carry out pilot horizontal sectoral
fitness checks. The first two of these will look at petroleum refining and
the aluminium sectors. Both sectors are critical for the EU's industrial
value chain, but urgently require new investment to be made in the face of
strong international competition. The fitness checks will focus on the
implementation and interaction of those policies that are most important for
the competitiveness of these sectors[33].
Future fitness check in other industrial products will follow. Governance and regulatory obstacles to the Internal Market also
arise from policy areas that are regulated by Member States, for example
technical rules, refusals to apply mutual recognition andmismatches between
the 27 different sets of taxation rules. An upstream analysis of draft
technical rules can prevent the emergence of regulatory obstacles. This is
precisely the objective of the 98/34[34]
notification procedure, which requires draft legislation containing technical
rules on products and information society services to be communicated to the
Commission before they are adopted. The preventive nature of this procedure has
avoided a large number of contraventions of free movement of goods rules. This
notification procedure can also be used, however, to improve national
legislation in line with "Better Regulation" principles and through
benchmarking. Its potential can be further exploited by recommending that
Member States use competitiveness proofing in the context of national impact
assessments. "Green products and services" represent a dynamic, innovative and
growing market. However, the development in parallel of different and often
inconsistent technical rules and labelling schemes in Member States and through
private initiatives might lead to confusion of consumers, and obstacles to the
free movements of these products and services across the internal market. The
Commission is studying the best possible ways to integrate "green products
and services" in the Internal Market, including environmental footprinting[35]. The lack of coordination between Member States on methodologies and
criteria for taking decisions on pricing/reimbursement of medicinal products
causes incoherencies and delays in access to innovative medicines. Whilst this
is being partly addressed through the Transparency directive and the work on
health technology assessment, a wider policy strategy agenda and roadmap is
needed in order to secure the competitiveness and long-term viability of the EU
pharmaceutical industry. There is scope for improving the EU framework for Market
surveillance. The General Product Safety Directive (GPSD) applies to all
consumer products, both harmonised and un-harmonised, while the provisions on
market surveillance currently contained in Regulation 765/2008 and in sector-specific
legislation apply to harmonised products, whether consumer or industrial. There
is thus the potential for confusion among both national authorities and
economic operators as to which system applies. A new proposal under preparation
for a market surveillance regulation would combine all of these market
surveillance provisions and address the deficiencies of the present legislative
framework. Market surveillance protects European citizens from non-compliant
products (e.g. risks to health and safety) and ensures fair trading conditions.
The policing of the Internal Market is done at national level, with Member
States responsible for both surveillance and enforcement. Surveillance in
particular is an enormous task. There is evidence of weak market surveillance
for some products, such as capital goods manufactured by the European machinery
industry[36].
A multi-annual action plan for market surveillance is needed to energise
pan-European market surveillance and boost cooperation and mutual assistance.
This will make life much harder for rogue traders, and help to further
integrate the single market for compliant and safe products. Responsible
operators will therefore no longer be put at a competitive disadvantage. As the borderline between services and goods
becomes less clearly defined, barriers to trade in services are directly
hampering trade in goods to an increasing degree. Business services, in
particular, are crucial to industrial competitiveness and innovation. They are
particularly relevant for SMEs, who rely more on purchasing services from the
market than from large companies. By the
end of 2012, the Commission will adopt a Product Safety and Market Surveillance
Package that would consist of a revised General Product Safety Directive, a new
Market Surveillance Regulation and a Communication on a multi-annual action
plan for market surveillance for 2012-15. The
Commission will evaluate the state of the "acquis" in the area of
industrial products as a whole, with a view to preparing a Roadmap for Reform
of the Internal Market for industrial products (2013). The
Commission will undertake fitness checks of the aluminium and petroleum
refining sectors focussing on the implementation
and interaction of those policies most important for competitiveness. The
Commission will develop a comprehensive strategy to support the competitiveness
of the defence industry and enhance the efficiency of the defence market. A
Communication is expected by April 2013. The
Commission will bring forward additional initiatives to foster internal market
integration in the fields of security and space. The
Commission will further exploit the potential of the 98/34 procedure as an
instrument for industrial policy and to help guide future EU legislative
priorities, in particular to encourage Member States to introduce impact
assessments and competitiveness proofing at the draft stage of their national
legislative processes. The
Commission will launch a policy strategy agenda to strengthen the
competitiveness of the pharmaceuticals industry. A
High-Level Group on Business Services will be created by the end of 2012. Following the report of this Group, the Commission will develop a
future work programme with policy recommendations by 2014. 2. Fostering entrepreneurship to render the Internal
Market more dynamic
Although more than one third of all new
jobs come from small, high-growth firms, EU small firms do not grow as fast as
in the US[37].
Building upon the Small Business Act, an Entrepreneurship Action Plan will foster
the growth of start-ups, facilitate the transfer of businesses, provide support
for early-stage businesses, and develop efficient bankruptcy procedures that
give entrepreneurs a second chance. Entrepreneurs need to exploit the full
potential of the digital single market in the EU that is expected to grow by
10% a year up to 2016[38].
The Commission has put the development of the internet and digital technologies
at the heart of the Europe 2020 strategy through the Digital Agenda for
Europe[39]
and Industrial Policy Flagships. EU policy provides the framework conditions
for the digital single market, including the legislative basis for e-commerce (Directive
2000/31/EC)[40].
In the future, the Common European Sales Law will offer uniform rules for
cross-border online sales and the digital dimension is a key part of the
European Consumer Agenda strategy[41].
Member States and the Commission must
contribute to speed up the full implementation of the Digital Single Market.
Member States have to simplify VAT registration procedures and create one-stop
electronic registration to facilitate cross-border digital commerce by small
businesses. The Enterprise Europe Network will provide
training and inform those SMEs who want to develop online business about their
obligations in the context of cross-border sales. Guidelines
and quality labels for eSkills could provide a commonly agreed skillset
for education and training providers both at EU and at Member State level.
Standards and guidelines are essential for digital inter-operability in supply chains.
However, it is not sufficient simply to
develop the framework conditions and to encourage entrepreneurs to exploit the
digital single market. Europe also needs to unleash entrepreneurship in the
digital economy itself in order to succeed. The Commission
will propose an Entrepreneurship Action Plan setting out recommendations to
Member States on improvements to the framework conditions and support measures
for entrepreneurship (November 2012) taking also additional measures to
stimulate the uptake of digital technologies and e-commerce. The Commission
will also propose targeted actions first quarter 2013 to support web
entrepreneurs in the EU. 3. The Internal Market for technology, the unitary
patent and the protection of intellectual property rights Intellectual property rights (IPRs) are vital
for innovation and growth as they provide protection to those companies that
invest in R&D. By rewarding creativity and inventiveness and protecting
companies and innovation from undue appropriation and use of technological
knowledge, IPRs are at the heart of the innovation system and form the basis of
all technology transfers. It is necessary to ensure that the IP framework serves
the needs of the new economy, in particular for open and collaborative
innovation. The introduction of the unitary patent
and the development of a unified patent litigation system in
Europe will reduce costs[42]
and the fragmentation of patent protection in the Single Market, thereby
eliminating unnecessary litigation costs and enhancing legal certainty. In
addition, a cost free automatic translation tool[43] will be available for all
European languages by the end of 2014. Inventors seeking patent protection have
tools available for accelerating the procedure up to the grant of a patent. Initiatives
based on utilising the work of other offices as well as an international
harmonisation of substantive patent law (comprising a worldwide harmonised
grace period to be elaborated with all its associated issues), can further
strengthen the patent system in the longer term and contribute to further
reducing costs. Other instruments could be used to complement the patent system. Optimising the
use and protection of trade secrets is one of them. Not all innovation steps
are patentable, but their results may merit protection against
misappropriation. Whilst some inventions may be patentable, companies may
consider they are better protected through secrecy. Innovators may thus sometimes
choose to protect innovations (and the returns to innovation) just keeping
their trade secrets undisclosed. There is no EU law on the protection of trade
secrets and this area is regulated at national level. However, there are
significant differences in national laws on the nature and scope of trade
secrets protection, as well as regarding the means of redress and remedies. The
Commission is examining whether existing differences in national approaches may
create barriers and transaction costs for companies operating cross-border, not
least for SMEs. Non-listed firms are subject to national
accounting rules resulting from the transposition of the Fourth Accounting
Directive. Although this directive allows Member States to develop rules in
that sense, there is currently no widespread acknowledgment of the value of
patents and other IPRs, especially in SMEs' financial statements. Steps will be
taken to explore ways that can allow firms to get effective recognition of the value
of their patents, including in their financial statements and to explore
potential benefits of such enhanced disclosure in terms of access to finance.
In addition, insurance schemes against IP litigation are becoming increasingly
significant. An effective IPR system needs to include
ex-ante safeguards and ex-post enforcement against those who do not respect the
rules. Patent ambushes, patent hold-ups, patent wars and infringements of these
rights (such as counterfeiting and pirating) harm victims directly and
undermine the trust in the IPR system. Rapid technological progress in industries
with economy-wide significance has led to risks that may result from patent
thickets[44]
and patent ambushes[45].
Studies have detected patent thickets in 9 out of 30 technology areas.
An efficient and proportionate regulatory system could foster forms of
pro-competitive cross-licensing or patent pool arrangements as effective
market-driven instruments to mitigate those risks. As part of that regulatory
system, the Commission will update its rules on agreements on technology
transfer. In addition, the work on existing safeguards such as fair, reasonable
and non-discriminatory terms (FRAND) licensing can be taken further.
Complementing the safeguards, a closer cooperation and information exchange
between the patent offices and the standardisation organisations could bring
significant improvements in the short run. IPRs are challenged by ever increasing
levels of counterfeiting and pirating of products. Commission reports on
customs seizures at EU borders show that the number of seizures and cases has
increased significantly since 2000. IP rights which cannot be enforced are
meaningless. Therefore, a minimum common framework governing the civil
enforcement of IPR has been in place since 2004 (Directive 2004/48/EC),
allowing not only for action against direct infringers but also against (online
and offline) intermediaries whose services are used by third parties to
infringe. This framework, which is currently under review, allows rightholders
to take action if their IP rights have been infringed. Complementary to measures, remedies and
sanctions provided for by the law, voluntary collaborative approaches could
strengthen in a very pragmatic way the fight against counterfeiting and piracy
such as the EU Observatory on Infringements of IPRs[46]. Also the Memorandum of
Understanding on the sale of counterfeit goods via the internet[47] has proven to be a successful
way to reduce the sale of fakes via the internet. - The Commission is examining the very fragmented legal
framework for trade secrets protection and is working on possible options to make
it efficient and less costly for business and research bodies to invest in,
license, transfer and share valuable knowledge and information throughout the
Internal Market. - The Commission will consider most adequate valuation
methods as well as the relationship between the IPR market and the appropriate
valuation and disclosure of IPRs in accounting, following the conclusions of an
expert group on these issues in 2013. - The Commission will consider measures that can
contribute to increase transparency and improve the treatment of IPR in
standardisation. - The Commission will foster cooperation between patent
offices and standard setting organisations including initiatives such as patent
landscaping and database linking. - The Council and European Parliament should urgently
adopt the revision of Regulation (1383/2003/EC) on customs enforcement. 4. International markets The European Union is the world's leading
trading power, but the world economy is changing rapidly and becoming
increasingly multipolar. The major emerging economies (notably Brazil, Russia,
India and China) continue to grow quickly, and most of them have put in place
ambitious industrial policies with a strong focus on technologies and
industrial innovation in order to "climb the quality ladder" and move
towards greener production. There is also a disturbing tendency to resort to
protectionist measures and discriminatory practices[48] . The Commission works to open markets and
connect Europe to the main sources and regions of global growth. The
Commission will continue to push for an ambitious trade and investment
agenda[49],
in a spirit of reciprocity and mutual benefit as well as a comprehensive
enforcement agenda, focusing in particular on market access, dismantling
barriers, opening up public procurement, ensuring effective enforcement of
trade rules (e.g. related to subsidies), the best standards of protection for
international investments and the full protection of intellectual property
rights. The consistent application of competitiveness-proofing in impact
assessments at the start of trade and investment negotiations, and providing a
comprehensive analysis for the European Parliament and the Council once
negotiations are concluded, will help to optimise the impact of FTAs on
industry and on the EU economy. The notification procedure of the WTO
Technical Barriers to Trade (TBT) is a powerful tool to improve market access,
but stakeholders, especially SMEs, do not make sufficient use of it. The
Commission will ensure that TBT information about market access requirements is
made more accessible and will make the procedure more visible and accessible to
stakeholders. In conformity with the Lisbon Treaty, a
comprehensive international investment policy is being developed[50] through a combination of bilateral
negotiations, dialogues with key partners and the active participation in
international fora. This should lead to improved access to key markets, high
standards of protection of EU investments in third countries and provide a
level playing field for EU companies. In parallel, it is essential to maintain
an open and non-discriminatory environment in order to further increase the
attractiveness of investing in the EU[51],
in particular for green-field foreign direct investments that create growth and
jobs and improve, where necessary, the transparency of FDI in the EU. To secure access to raw materials, and also
to its trade policy initiatives[52],
the Commission will continue developing its "raw materials diplomacy"[53]and improve the targeting of
regulatory cooperation in this area. Target regions and countries include Greenland[54], Mediterranean partner
countries, South Caucasus countries, Latin America, Africa and Asia. EU companies need to be better supported
and accompanied in their internationalisation process, in order to increase the
share of internationally active EU SMEs (currently estimated at 13%).
Commission-led "Missions for growth" in third countries with
representatives of the EU industry and SMEs, which should not be confused with
the traditional trade promotion activities, can play a positive role in
providing a common framework for industrial and SME policy cooperation and help
foster business relations. The EU is working on a review of the
strategy for the enforcement of intellectual property rights in third countries
as a major component of its initiatives against counterfeiting. In this
context, the Commission directly supports SMEs to protect their intellectual
assets in key foreign markets with the SME IPR Helpdesks and user-friendly
internet-based tools, like the joint EU and US TransAtlantic IPR Portal. The
effectiveness of EU business support structures in third countries will also be
upgraded. Finally, the Commission will accompany
external actions with internal initiatives and pursue mutual supportiveness
between policies and regulatory initiatives in the Single Market and external
priorities, avoiding regulatory approaches that distort trade. The
Commission will: –
Take actions to increase the visibility of
the TBT notification procedure and make it more accessible to industry, in
particular to SMEs. –
Further develop the “raw materials diplomacy”
in a targeted way and fully implement the SMEs internationalisation strategy[55]. –
Support the enforcement of intellectual
property rights in third countries and extend tools to secure SME IPRs in
international markets, including SME IPR Helpdesk initiatives in the ASEAN and
Mercosur regions and improve the effectiveness of EU business support
structures in third countries by linking them with the Enterprise Europe
Network. –
Further promote international regulatory
cooperation and convergence, notably vis-à-vis neighbouring countries, in order
to accompany the creation of markets for new products and technologies and in
view of ensuring mutual supportiveness between the Single Market initiatives
and external priorities. C. Access to finance and capital markets The recovery and future growth of European
industry depend on the availability of capital to carry out the necessary
investments to adopt new technologies and equipment to increase our
competitiveness. Unfortunately, our stakeholder consultation and surveys
clearly show that access to capital markets and credit constitutes a major
problem for European business. The weak demand for credit explains in part
the currently low levels of bank lending, but supply side restrictions are very
important too.[56] Necessary deleveraging and restructuring of the banking sector are
likely to delay the recovery of bank lending. The problem is particularly
serious for SMEs. According to the April “SME Access to Finance Survey"
conducted by the ECB, SMEs reported higher rejection rates when applying for a
loan (13%, up from 10%). Most European industrial firms rely heavily
on bank credit. In the USA, debt securities and stock market capitalisation
both exceed the total volume of bank assets. Capital market debt accounts for
corporate funding is just 7% of GDP in Europe compared with 35% in the USA[57] This structural feature of the
EU economy makes EU industry more sensitive to the impact of the banking
crisis, given the limited availability of alternative financing sources. Against this backdrop, the Commission is
proposing a number of measures to improve the access to capital for industry. A
first group of measures relies on public sector support, while the second group
includes measures that could help facilitate access to capital markets. 1. Public sector support to facilitate
access to capital to industry The new programming for the Multiannual
Financial Framework for 2014-20 will simplify and reinforce the
effectiveness of financial instruments to support innovative activities. The
possibility of using the resources allocated to the Horizon 2020 in
combination with the COSME programme will facilitate the transition from
technological development to the industrial and market exploitation of new
technologies. The expansion of the risk-sharing
financing facility will help lower risks for high-growth potential companies. Cohesion Policy provides an integrated approach to address the needs of SMEs,
covering all phases of business creation and development, and is the largest
source of EU support to SMEs with a total volume of EUR 25 billion directly
targeted at SMEs in the current financial period (2007-13) out of the EUR 55 billion
for Regional Policy business support. The competitiveness of SMEs is also a
clear priority on which future Cohesion Policy funding will be concentrated.
The support measures combine direct financial support, both in the form of
grants and revolving financial instruments, with advice and support services,
including for vocational training and entrepreneurship. Its aim is to help SMEs
benefit from networking and clustering and to develop new business models and
bring new ideas faster to the local and global markets. The
Commission will cooperate with the EIB and the EIF to ensure the implementation
of more efficient and effective financial instruments for the investment of the
resources allocated in the Horizon 2020 and COSME programmes. Member
States should ensure that the effective use of cohesion and structural funds
strengthened by the concept of "smart specialization" will contribute
to growth and job creation by improving industrial competitiveness (2013). To
facilitate access to finance[58],
the Commission will launch a single portal providing information on how to
access finance from the different EU programmes in each country.[59] In addition to these measures aiming at the
medium-to-long term, the capital increase of the European Investment Bank
of €10 bn is estimated to generate €60 bn of additional lending capacity in the
near future. In principle, between €10-15 bn will be allocated to SMEs, a
similar amount to innovation and between €15-20 bn to resource efficiency[60]. In order
to speed up recovery and growth: –
The increased lending capacity resulting from
the capital increase of the EIB will be made available as early as 2013, using
the current lending facilities of the EIB. After
2014, the new instruments developed for the new financial framework will enter
in action. –
Member States should examine in the context
of the current programming period of structural funds 2007-2013 all
opportunities to direct remaining resources towards the six priority lines
defined in this communication and in projects aimed at increasing the
competitiveness of SMEs in particular. –
Implementation of the Action Plan on Access
to Finance remains a high priority at European level to improve businesses’
access to finance. Member States should also take actions to facilitate financing
at the local, regional and national levels. –
Member States should also take action to
facilitate financing environment at the local, regional and national levels in
compliance with State aid rules. 2. Access to capital markets The crisis has further reduced the already
limited number of financing choices available for SMEs and midcaps. The
securitisation market for SME loans remains flat. A revival of this market in
an environment of more effective prudential supervision and regulation to
preserve the stability of financial markets could contribute to long-term
financing of projects. The deteriorating economic outlook has also
taken its toll on the availability of venture capital. Many venture capital
funds are nursing their portfolio of companies and are shunning new deals.
European venture capital funds continue to be largely nationally oriented, too
small and often unable to secure a deal flow as the framework conditions are
still not favourable enough. Facilitating access to capital markets for
SMEs has become an important objective at both EU and national level. In
December 2011, the Commission adopted an action plan to improve access to
finance for SMEs.[61] Among other measures, this action plan includes proposals to create
a true Single Market for Venture Capital funds in Europe and for a new
European Social Entrepreneurship Funds regime presented by the Commission
in December 2011. Agreement on these proposals by the Council and European
Parliament should be reached urgently given the importance of these measures
for fast growing SMEs. In addition to equity, other types of
financing channels could be considered.[62]
The most traditional of them is the private placement system - well established
in the USA - allowing the insurance and pension fund industry to supply capital
directly to business without banking intermediation. Other channels include
supply chain finance, asset-based financing, factoring or invoice discounting,
leasing, business angels, and peer-to-peer lending. Progress in the development of these
financing options will take time and require prudential consideration by the
regulator. The SME market labels recently proposed in the revision to the Markets
in Financial Instruments Directive (MiFID) could be very useful to
strengthen investor protection. In the meantime, some building blocks to
overcome current obstacles to cross border activities can be provided in the
short term. For instance, guidelines could be provided to harmonise the scoring
of SMEs across the EU. They would facilitate cross border operations by SMEs
and midcaps . In the
Green paper to be presented around the end of 2012 on the financing of long
term investment in the EU, the Commission will further look into how to
facilitate and diversify access to finance for SMEs and midcaps. The
Commission will foster the exchange of best practices amongst Member States on
alternative means of financing SMEs and mid-caps. Countries where venture
capital markets is still seriously underdeveloped should review the operating
environment of venture capital funds to evaluate the appropriate action that
would improve the access to equity capital of firms with high growth potential.
Equally there should be adequate incentives for business angels to make angel
investing attractive. The Commission
invites the Council and the European Parliament to quickly adopt the proposal
for a Regulation on European Venture Capital Funds[63]. The
Commission will in 2012 complete the examination of tax obstacles to cross
border venture capital investments and present proposals, where necessary to facilitate these investments,
while at the same time preventing tax avoidance and evasion. D. The
crucial role of human capital 1. Addressing the current
challenges: job creation Market adjustments during the crisis and
its aftermath require close coordination of relevant EU policies and for joined-up efforts on the part of the EU and Member States. To that end, Member States have been invited by the Commission [64] to place greater emphasis on
job creation policies, as indicated in the Employment Package proposed in April
by the European Commission. Member States must emphasise job creation policies,
especially in exploiting the potential of new technologies and the green
economy and to address youth unemployment. Transforming
the economy along these paths will increase competitiveness and provide
important sources of job creation that is indispensable to achieve the 75% EU employment target by 2020 through 17.6 million new jobs
to be created. Competitive and efficient industrial policy
also relies on dynamic labour markets and labour mobility is a key adjustment
variable in this process. The transformation of the European Employment
Services tool (EURES) into a European placement and recruitment tool is
designed to facilitate the matching, placement and recruitment in the EU. The crisis has shown that, in times of
economic contraction, internal flexibility can be very effective as a means of
maintaining employment and lowering adjustment costs, as confirmed in the
consultation on the Restructuring Green Paper[65],
but this requires measures to facilitate smooth employment transitions both by
social partners and public authorities. Member States should pay attention to
tailored and balanced reforms in employment protection legislation in order to
remedy segmentation or to halt the excessive use of non-standard contracts and
the abuse of bogus self-employment. Improving the quality of traineeships in
Europe will help facilitate education-to-work transitions and increase the employability
of young people. A strong social dialogue is a common
feature in those countries where labour markets have proved to be more
resilient to the crisis. It is important, therefore, to involve the European
and national social partners in more consistent exchanges of views. The
Commission urges Member States to adopt an ambitious approach and policies for
job creation as part of their National Job Plans. The
reform of the network of European employment services in the EEA EURES will
help manage skills needs and job transitions. A
framework should be finalized in 2012 to engage social partners in the design
of employment policies, including skills and training, within the European
Semester of policy coordination. The
Commission is working towards a Quality Framework for Traineeships, which
should encourage companies to offer traineeships providing good quality
learning content, decent working conditions and a good stepping stone for
entering the labour market. 2. Investments in skills and training to
accompany structural change The success of European industry will
depend on its capacity to tap into the existing and future potential of
Europe's human capital, with special focus on the six priority action lines as
defined in this Communication. Our consultation has highlighted the
importance that industry attaches to skills for competitiveness. The expert
group on New Skills for New Jobs[66]
clearly showed the need to bring together education and training with industry
to better anticipate the future demand for skills. Skills are a key driver for growth,
employment and competitiveness: they lay the foundation for productivity and
innovation. However, Europe faces serious challenges related to the supply of
skills. Already today, mismatches – and in some Member States even
skills shortages – hamper growth and employment. The education system
must provide the right skill set for use in industry, particularly for school
leavers and graduates. Investment in training is also investment in innovation,
since much technical change results from incremental innovations by skilled
workers and engineers on the factory floor[67].
However, a prerequisite to investing in new skills and training is the need to
further develop tools to monitor and anticipate needs and mismatches in the
area of skills. At European level, several tools are currently being developed
to that end. 3. Anticipation of employment and skills
needs and management of restructuring within businesses Anticipation of employment and skills needs
is recognised as vital to the success of every business; it influences the
competitiveness and the long-term perspective of companies irrespective of the
industrial sectors in which they are active. In this context, good anticipation
and well prepared restructuring can have a positive impact not only on
businesses' sustained competitiveness, but can produce positive spillover
effects to other markets and sectors, while increasing the overall
employability of the labour force and facilitating their transition to new
jobs. The responses to the Commission's Green Paper on "Restructuring and
anticipation of change: lessons from recent experience" confirm that anticipation
is essential to investments in human capital, while one of the main
challenges remains to define the employment and skills needs and invest
accordingly. In particular, high-growth small and medium size businesses'
capacity to anticipate employment and skills needs is much more limited as
compared to large companies hence the compelling need to boost their capacity
to anticipate and make the appropriate choices in terms of human capital
investments, also with a view to fully tapping their potential to drive
innovation and growth in Europe. In order
to match skills and jobs, the Commission will: 1. develop a European
multilingual classification of Skills, Competences and Occupations; 2. promote the
creation of the European Sector Skills Councils and of Knowledge and Sectors
Skills Alliances and support the development of multi-stakeholders partnerships
in the ICT sector to improve the skills shortage in the ICT sector. The
Commission will promote the uptake of standardised skills certification schemes
through the Intelligent Energy Europe Programme in 2013/2014. The
Commission will support Member States in "rethinking skills" by
providing them with policy guidance in a Communication in November on
implementing efficient reforms and developing the effective education and
training systems that will lead to a better skills supply. IV. Conclusion:
governance and goals Industry can make a major contribution to
take the EU economy out of crisis. This Communication has outlined a proactive
industrial policy that can raise our competitiveness and lay the foundations to
reindustrialise Europe. The measures proposed serve to enhance and underpin the
strategic approach to industrial policy proposed in 2010. In order
to ensure the proper implementation of these actions, the Commission will
closely monitor a number of key variables. 1.
Investment –
Gross fixed capital formation as a share of
GDP was 18.6% in 2011. Before the crisis, it reached 21.25% of GDP in 2007. The
investment effort needed to improve our productivity would require pre-crisis
investment levels in 2015 and average levels of above 23% until 2020. Investment
in equipment is currently between 6 and 7% of GDP. To improve productivity and
introduce new technologies it should recover pre-crisis levels and grow steadily
at rates above 9% of GDP until 2020. 2.
Internal market trade –
Trade in goods in the Internal Market is currently
just below 21% of GDP[68].
In a reinvigorated Internal Market, this rate should be 25% by 2020. 3. SMEs –
In conformity with Commission aspirations for
the Digital Agenda flagship Market, the number of small firms engaging in
e-commerce selling should increase to reach 33% by 2015. The proportion of SMEs
exporting inside the Internal Market was 25% according to the 2009 survey[69]. The medium-tem
objective is to have SMEs equally engaged in market outside the EU as within
the internal market. Achieving these goals will enable the
Union to reindustrialise, raising the share of industry in GDP from the current
level of around 16% to as much as 20% in 2020. The success of industrial policy relies
heavily on our capacity to exploit synergies. Community policies must
be properly coordinated and synchronised. EU activities in key areas
contributing to the achievement of Europe 2020 objectives, such as investments
in infrastructures, R&D and innovation, the development of our Digital
Agenda for Europe, policy actions for skills and employment, our trade
and investment policy, our internal market policies, our competition policy, transport
and maritime policy, our energy, environment and climate policies, will be
closely coordinated with developments in industrial policy. The measure of our
success will depend to a large extent on our capacity to deliver with maximum
joint effectiveness in all of these areas. Synergies between EU-led actions and
Member States’ industrial policies must be improved.
The new cohesion policy instruments for 2014-2020 will help Member States to
increase their competitiveness. A strategy for smart specialisation is required
as a pre-condition for the use of the European Regional Development Fund under
the thematic objective of strengthening research, technological development and
innovation, especially in SMEs, which covers most of the investment priorities
proposed as priority action lines in this Communication. Member States should
follow up reforms identified by the country-specific recommendations endorsed
by the June European Council. The implementation of industrial policy
also requires a more effective European governance structure. Progress
has already been made in this regard since the 2010 Communication: · Closer co-operation with Member States has been achieved through the
development of the European Semester and the regular monitoring of
competitiveness performance and policies at EU and Member State level through
the Article 173 procedure of the Lisbon Treaty. The first of a new series of
projects for better practices has been completed on key enabling technologies,
to be followed by a further project on foreign direct investment. · The competitiveness proofing of new Commission proposals has been
successfully incorporated into the impact assessment process. Nevertheless, there is much room for
further improvements in governance. ·
Assisted by the High Level Group on
Competitiveness and Growth, the Competitiveness Council will annually assess
progress in the implementation of structural reforms and on the effectiveness
of industrial policy measures to strengthen competitiveness, ensuring that it
fits into the European Semester. ·
SME envoys will report annually on the
effectiveness of national and EU measures to improve the competitiveness of
SMEs in their own countries and feed into the European Semester. ·
The different task forces for the priority
action lines will be set up as soon as possible. They will report once a year
to the Competitiveness Council. They will include in their work information
resulting from the programming of structural funds. ·
The Commission invites regions to build
research and innovation strategies for smart specialisation to contribute to
the goals of this Communication in close consultation with the private sector
and research and innovation actors in order to identify strategic priority
areas for knowledge-based investments. ·
Further efforts are needed to ensure the
combination of the use of Community instruments such as Horizon 2020 and COSME,
with Structural funds and Member States own funds, notably to deliver major
investment projects, including demonstration projects and pilot lines. Annex: Industrial Policy Communication main measures || Lever || Key Action || Proposal by the Commission Facilitate investment in new technologies and innovation 1 || Priority action lines || Take, in cooperation with industry and Member States, measures for the speedy development of production and markets. -markets for advanced manufacturing technologies for clean production -markets for key enabling technologies -bio-based product markets -sustainable industrial policy, construction and raw materials -clean vehicles -smart grids || Dedicated task forces will be created before the end of 2012 to define roadmaps for each action line. 2 || Accompanying measures || Ensure a simplified, predictable and stable regulatory framework for new products and services including the appropriate standards and certification. || Further actions will be taken in the field of standardisation, fostering infrastructures and the digital market in 2013 Access to markets 3 || Improving the Internal Market for goods || Simplification and better governance of the Internal Market legislation making it more stable and predictable. Better protection of citizens from non-compliant products and fair market conditions. || Adopt a Product Safety and Market Surveillance Package by the end of 2012 that would consist of a revised General Product Safety Directive, a new Market Surveillance Regulation and a Communication on a multi-annual action plan for market surveillance for 2012-15. A roadmap for the reform of the Internal Market for Goods will be defined in 2013 4 || Fitness checks || Improve consistency in the implementation and interaction of those policies most important for competitiveness. || Undertake fitness checks of the aluminium and petroleum refining sectors starting before the end of 2012. 5 || Entrepreneurship || Improvements to the framework conditions and support measures for entrepreneurship as well as actions to stimulate the uptake of digital technologies and e-commerce. || Propose an Entrepreneurship Action Plan setting out recommendations to Member States. November 2012. 6 || Intellectual Property || Consider measures to increase transparency and improve the treatment of IPR in standardisation. Support SMEs to protect and effectively use intellectual property rights in third countries including the ASEAN and Mercosur countries. || New IPR helpdesks will be established and become operational in 2013 to support SMEs. 7 || Raw materials || Further develop the “raw materials diplomacy” and promote international regulatory cooperation and convergence, notably vis-à-vis neighbouring countries, in order to accompany the creation of markets for new products and technologies. || Implementation and development of agreements signed in previous missions and new missions starting in November 2012 with Morocco and Tunisia; Access to finance and capital markets 8 || SMEs || Simplify and reinforce the effectiveness of financial instruments to support innovative activities by SMEs. Improve and diversify access to finance for the real economy. || Additional facilities to increase lending capacity will result from the capital increase of the EIB that will be made available in 2013. Proposals will follow on the basis of the conclusions of the Green paper on the financing of long term investment in the EU expected by end 2012. 9 || "Smart specialization" || Member States will be able to make effective use of cohesion and structural funds strengthened by the concept of "smart specialization" to contribute to growth and job creation. In the context of the current programming period of structural funds 2007-2013, they should exploit all opportunities to direct remaining resources towards investment in innovation. || New cohesion policy provisions for 2014-2020 Multiannual Financial Framework and Development of COSME and Horizon 2020 programmes. The crucial role of human capital 10 || Skills and training || Match skills and jobs by developing a European multilingual classification of Skills, Competences and Occupations. || Creation of the European Sector Skills Councils and of Knowledge and Sectors Skills Alliances and support the development of multi-stakeholders partnerships in the ICT sector to improve the skills shortage in the ICT sector. (2013) Develop EURES into a pan-European placement and recruitment tool. Establish a Quality Framework for Traineeships to encourage companies to offer traineeships to young people [1] Industrial activities also have important spillover
effects on production and employment in other sectors. For every 100 jobs
created in industry, it is estimated that between 60 and 200 new jobs are
created in the rest of the economy, depending on the industrial sector. See
annexed Staff Working Document. [2] See the Country-specific recommendations accompanying
"Action for stability Growth and Jobs" COM(2012)299 of 30 May 2012. [3] Manufacturing % of GDP at factor cost, 2011: Eurostat
(nama_nace_10_c) [4] COM(2010)614. [5] See Staff Working Document SWD(2012) 297 for a detailed
implementation report on these actions. [6] Accompanying this Communication, a working document reports
on the implementation of the 2010 Communication and presents evidence in
support of the policy actions included in this Communication. Further support
is provided by the 2012 Competitiveness report and the "Report on Member
State competitiveness Performance and Policies" based on Art. 173 TFEU.
This Communication has benefitted from extensive discussions with the Member
States, stakeholders and a public consultation. The ‘Mission Growth’ conference
on industrial innovation, held on 29 May 2012 in Brussels, provided additional
input. [7] See
ECFIN Spring 2012 forecasts http://ec.europa.eu/economy_finance/publications/european_economy/2012/ee1upd_en.htm [8] International Energy Agency: Energy Prices and Taxes,
Second Quarter 2012 [9] See Boston Consulting Group: "US manufacturing nears
the tipping point", March 2012. [10] "Innovation Union" flagship COM(2010)546 of 6
October 2010. [11] See Rifkin J. “The Third
Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy,
and the World » Palgrave McMillan, New York 2011. [12] Cohesion Policy 2014 -2020: Investing in growth and
jobs COM(2011)614 of 6 October 2011 [13] Roland Berger "GreenTech Made in Germany: update
2012" http://www.rolandberger.com/media/pdf/Roland_Berger_Umbau_Energiesystem_20120208.pdf [14] "European Competitiveness Report 2010"
SEC(2010) 1272 [15] On
this concept see “Trends and
challenges in demand-side innovation policies in Europe » at http://ec.europa.eu/enterprise/newsroom/cf/itemdetail.cfm?item_id=5532&lang=en&tpa_id=135 [16] "A European strategy for Key Enabling Technologies
- A bridge to growth and jobs" COM(2012)341 [17] KETs have also been identified as a priority area for lending
enabled by the EIB capital increase. [18] Europe Innova Report “Assessment of the Bio-based
Products Market Potential for Innovation” 2010 [19] " Innovating for Sustainable Growth: A Bioeconomy
for Europe" COM(2012) 60 of 13 February 2012. [20] http://www.cen.eu/cen/Sectors/Sectors/Biobased/Pages/default.aspx [21] "Impact Assessment of Energy Efficiency
Directive" SEC(2011) 779 of 22 June 2011. [22] http://ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/index_en.htm [23] "Making raw materials available for Europe's
future wellbeing – proposal for a European Innovation Partnership on raw
materials" COM(2012) 82. [24] Announced in the Communication "Strategy for the
Sustainable Competitiveness of the Construction Sector and its
Enterprises" COM(2012) 433. [25] "Proposal for a Regulation
of the European Parliament and of the Council on Union guidelines for the
development of the trans-European transport network, COM(2011)650/3" [26] Roadmap to a Single European Transport Area – Towards a
competitive and resource efficient transport system. COM(2011) 144 [27] COM(2011)202 of 12 April 2011. [28] See the Commission Communication COM(2011)
202"Smart Grids from innovation to deployment". [29] Investment in infrastructures is also a priority area
for lending enabled by the EIB capital increase. [30] Proposal for a Regulation on guidelines for
trans-European energy infrastructure COM(2011)658 [31] They will be set up in full respect of the rules on
expert groups and other bodies established by the Commission (C(2010) 7649 and
SEC(2010) 1360). [32] "Smart Regulation in the European Union"
COM(2010)543 of 8 October 2010. [33] E.g. the assessments by Member States presented at the
Commission's EU Refining Roundtable on 15 May 2012 concerning the combined
impact of EU policies on refining. [34] Directive COM(98/34)/EC Laying down a procedure for the provision of information in
the field of technical standards and regulations and of rules on Information
Society services. [35] The environmental footprint proposal announced in the
Single Market Act will be launched in 2013 in a Commission Communication. [36] DG ENTR conference on Market Surveillance and
Machinery, 24 November 2011: http://ec.europa.eu/enterprise/sectors/mechanical/machinery/market-surveillance/index_en.htm [37] Albert Bravo-Biosca "The dynamics of Europe's
industrial structure and the growth of innovative firms" JRC Conference
Seville, October 2011. [38] Boston Consulting Group "The internet economy in
the G-20" March 2012. [39] COM(2010)245. [40] COM(2011) 942 "A coherent framework for building
trust in the Digital Single Market for e-commerce and online services".
See also COM(2011) 942 final “A coherent framework for building trust in the
Digital Single Market for e-commerce and online services”. [41] COM(2012)225 "A European Consumer Agenda -
Boosting confidence and growth". [42] Registration and translation costs for obtaining patent
protection in Europe will fall by up to 80%. [43] See "Patent Translate", http://www.epo.org/searching/free/patent-translate.html. [44] "Patent thickets" occur where a significant
number of patents bear on a particular product and are held by different patent
owners. Royalty stacking results from independent pricing of these
complementary patents. Patent thickets are prevalent in communication
technology, semiconductors, optics, electrical machinery and medical technology. [45] "Patent ambushes" occur when the participant in
a standard setting procedure discloses that he holds patents or patent
applications regarding a technology included in the standard only once the
standard is adopted and then refuses to grant a licence for these patents or
grants it only on unfair, unreasonable or discriminatory terms. [46] Regulation (EU) No 386/2012 of 19.04.2012; OJ L 129,
16.05.2012, p.1 [47] http://ec.europa.eu/internal_market/iprenforcement/stakeholders/index_en.htm#maincontentSec2
[48] COM(2012)70, "Trade and
Investment Barriers Report 2012". [49] COM(2010)612, "Trade, Growth and World
Affairs". See also SWD(2012)219. [50] COM(2010)343, "Towards a
comprehensive European international investment policy". [51] European Parliament resolution of 3 July 2012 on the
attractiveness of investing in Europe. [52] DG TRADE, "EU Trade Policy for Raw materials.
Second Activity Report". [53] In this field the Commission is also developing other
initiatives such as the so called country-by-country reporting. [54] A letter of intent on
co-operation in the area of mineral resources with Greenland was signed in June
2012 - Developing a European Union Policy towards the
Arctic Region, JOIN(2012) 19 final [55] COM(2011)702, "Small
Business, Big World - a new partnership to help SMEs seize global
opportunities". [56] The ECB’s Financial integration
report for 2012 states that “impairment and fragmentation of euro area banks’
funding channels also affected, via the transmission channel, the borrowing
conditions available to the real economy”. ECB, Financial Integration Report, April 2012, page 57. [57] Standard & Poors, "The Credit Overhang",
RatingsDirect, July 31.2012, page 5. [58] COM(2011) 870 final [59] To access EU financial instruments, please visit the
following website to locate banks or venture capital funds that provide finance
in your country: http://access2finance.eu
[60] EIB Lending Priorities Associated with a Capital Increase:
A joint European Commission and European Investment Bank report to the European
Council at http://www.eib.org/attachments/lending-policy-associated-with-a-capital-increase-final.pdf [61] COM(2011) 870 final. [62] Several Member States already provide
SMEs and midcaps with innovative alternative financing means. In Germany, five
stock exchanges have carried out 50 bond issuances for midcaps with individual
volumes usually ranging between 30 and 100 million euros. Two new alternative
markets will be launched this autumn in France and Sweden. In Italy, the fixed
income market will broaden the possibilities for trading to include previously
non-listed securities. The Department for Business, Innovation and Skills in
the UK has launched a comprehensive review of alternative financing channels,
including fixed income markets. [63] COM(2011)860 final [64] COM(2012) 173 final, Towards a job-rich recovery,
COM(2012) 299 final, Action for Stability, Growth and Jobs. [65] "Restructuring and anticipation of change: what
lessons from recent experience?" COM(2012)7. [66] New Skills for New Jobs: Action
Now. A report by the Expert Group on New Skills for New Jobs prepared for the European Commission,
February 2010 available at http://ec.europa.eu/social/main.jsp?catId=568&langId=en [67] The European Institute of Innovation and Technology
(EIT) plays a fundamental role in nurturing talent across borders and fostering
people-driven innovation via the integration of research, higher education and
business – the Knowledge triangle. Through the Knowledge and Innovation
Communities (KICs), the EIT provides new career paths between higher education
and the private sector, and innovative schemes for professional development. Entrepreneurship
is a key component of the EIT KICs programmes, through which world-class
researchers and students are equipped with the knowledge and attitudes to turn
ideas into new business opportunities. [68] Source: Eurostat Statistics in Focus 3/2012. [69] DG Enterprise and Industry, "Survey on
Internationalisation of SMEs", 2010.