23.12.2009   

EN

Official Journal of the European Union

C 318/43

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measures to increase cooperation between companies and workers,

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common and better coordinated policies,

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more time-efficient decision-making processes, and

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simpler and more transparent legislation.

1.5.1

The EESC is aware that some countries belonging to the original group who set out to create the European Community are, especially in this period of crisis, displaying considerable impatience with the rules of the internal market in areas such as competition and state aid. This is a mistake (1).

1.5.2

In present circumstances, the Council – backed by the European Parliament and the Commission – should devise a ‘strategic pact’, including:

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a resilience and survival strategy making it possible to operate in mature markets through better specialisation in the same market, with cost cutting, or strong diversification into contiguous sectors, or new formulas;

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a product and service process innovation strategy including market and technology change, with new materials leading to new products;

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new initiatives involving the development of new types of businesses, sectors or initiatives. Foresight evaluations are required to envisage new expanding products (such as lead markets), towards which new investment should be channelled;

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local marketing that emphasises excellence through agreements with research centres in order to increase technological cross-pollination;

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financial support through development funds, including through loan guarantees under the EIF (4);

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capitalisation of the risk capital of credit unions through agreements between administrations and the banking system to allow payment deferrals for micro and small businesses, primarily in order to safeguard employment levels;

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short-term debt consolidation to enable micro and small businesses to focus on production, marketing and after-sales services;

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support for an innovative services sector (green economy) by taking advantage of innovative training opportunities under the European Social Fund;

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development of high-standard personal services in part by enhancing and strengthening the social and health care system (5);

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implementation of infrastructure policies contributing to increased innovative choices for a low-carbon economy and creation of conditions making it advantageous to live in the region;

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stepping up energy efficiency and environmental criteria in public procurement procedures;

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encouraging new, more efficient products to substitute old ones, by means of funding;

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enhanced access to information;

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easier use of raw materials.

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such aid does not have the effect of strengthening protectionism or hampering free competition;

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businesses in receipt of funds should, above all, undertake to sustain employment levels;

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collective agreements should be respected and the workers’ purchasing power maintained;

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workers can use periods of reduced production to train for new qualifications and should be supported in this;

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public financial support does not become a source of income for shareholders through dividends or other forms of share buy-backs;

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as far as possible, support promotes the development of new environment-friendly products and services;

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aid must not interfere with competition and must be temporary and degressive;

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suitable monitoring mechanisms are in place to protect tax-payers.

2.1

The manufacturing and services sectors are the backbone of Europe's economy. The establishment of the Single Market has led to their strong development based on common standards and rules.

2.2

The manufacturing and services sectors are faced with exceptional challenges:

2.3

The current global recession may require these sectors to make even greater efforts to:

2.4

The ongoing crises do not only challenge the survival of businesses, they also offer major development and innovation opportunities. Businesses should not however be left to cope on their own. Entrepreneurship and job creation should be encouraged by implementing reforms as soon as possible in order to improve the business environment by reducing unnecessary administrative burdens, preserving and improving the internal market, encouraging risk capital, stimulating innovation and flexicurity measures, legislating less and better, and investing in the links between academia and science and the world of business, and in educating and training human resources, especially in the technical and scientific disciplines and in the development of lead markets.

2.5

The EESC underlines the importance of focusing on the current situation and possible future prospects for the key manufacturing and services sectors, and tourism in particular, bearing in mind a number of fundamental and interrelated aspects:

3.1

In the USA, GDP contracted by 1 % during the fourth quarter of 2008, following a drop of 0.1 % in the previous quarter. In Japan, GDP went down by 3.3 %, following a drop of 0.6 % in the previous quarter. GDP in the euro area fell by 1.5 %, following a drop of 0.2 % in the previous quarter (15).

3.2

The unemployment rate is rising rapidly and looks set to approach 12 % by the end of 2010 according to the OECD. At the same time, salaries are rising more slowly or not all.

3.3

As the Commission points out (16): ‘As long as lending remains scarce, efforts to boost demand and consumer confidence will be held back. (….) This is a global crisis, and recovery will not be complete until the major players of the world economy are once again growing and trading together’.

3.4

The European Trade Union Confederation (ETUC) shares this view, stating that ‘the outlook for growth in 2009 and beyond is alarming, given that the situation will get worse before it may get better, and it will only get better if there is a fundamental shift in thinking: away from the comforting yet unrealistic notion of a return to “business as usual” towards a new economic reality investing in people, innovation and sustainable development, as well as a revalorisation of the role of government:

3.5

In the run-up to the G20 summit in London of 18 March 2009, the Confederation of European Business (BUSINESSEUROPE) stressed that ‘the financial crisis is having a devastating impact on companies as the major drivers of growth have been hit by limits on access to finance. (….) Economic stimulus is needed to prevent a global economic meltdown’ (18).

4.1

Broader consensus is developing and there is a growing convergence of forces to take extraordinary measures and identify emergency policy responses for the preservation, at all costs, of businesses, manufacturing sectors, production and service activities, jobs, incomes and household consumption, going beyond existing rules.

4.2

Policies aimed at limiting the economic, employment and social impacts of the crisis by offloading internally accumulated tensions onto neighbouring countries are not only a false solution to the problem, they risk pushing economies into nationalistic and protectionist behaviour that would destroy international cooperation and regional integration frameworks painstakingly built up over recent years in Europe and around the world.

4.3

The EESC considers the following points to be fundamental, indispensable components of any action taken to tackle the ongoing crisis:

4.4

The EESC is convinced that the ongoing crisis should result in an institutional leap towards greater economic integration, geared to the development of a quality economy, and to more and better jobs.

4.5

The EESC nevertheless believes that a qualitative leap towards greater EU political integration is even more necessary. It considers this to be the only way to achieve a trade-off between giving up national egoism and priorities in pursuance of a common future.

4.6

The EESC is convinced that only if the European project is renewed, in the spirit of Jean Monnet at the launch of the Treaty of Paris, which brought the ECSC into existence, will it be possible to rebuild the foundations and launch a European economic recovery.

4.7

We must lose no time in completing the ratification of the Lisbon Treaty in order to ensure an EU architecture that can respond via better coordinated policies.

5.1

In recent months, corporate restructuring has increased dramatically. Many companies have launched redundancy schemes, with significant social consequences, also for the futures of young people (20). Others have declared bankruptcy.

5.2

The EESC firmly believes that human resources are the key to a return to EU competitiveness in terms of both workforce skills and qualifications, and a new managerial governance model.

5.3

The EESCC believes that investing in the workforce and protecting jobs are vital for the promotion of European industrial competitiveness in terms of both qualifications, new skills for the workforce and a new model for corporate social responsibility (21).

5.4

Given the magnitude of the crisis, vocational training/employment schemes orientated towards growth sectors, such as renewable energies, should be set up without delay for workers who fall victim to the recession.

5.5

Measures to support household consumption should be considered, also in order to stimulate demand (22).

6.1

Deindustrialisation: In recent years, especially at the turn of the century, the Commission and many Member States may have given scant importance to industrial and manufacturing policy in order to prioritise wealth derived from developing complex financial systems, supported mainly by North American models.

6.2

In 2005 the EU adopted an outline integrated European industrial policy based on a mix of sectoral and horizontal measures, followed by a mid-term review in 2007, making a contribution to the EU's growth and jobs strategy (23). Subsequently, in 2008 the EU launched a sustainable industrial policy action plan (24), on which the EESC has already commented (25).

6.3

The central importance of socially responsible and competitive businesses, social economy enterprises and a better qualified and participatory workforce must constitute the reference base for recovery policies for the manufacturing and services sectors.

6.4

The Lisbon Strategy must retain its credibility. The Member States and the EU institutions must demonstrate their ability to adapt policies to the new context by identifying clear priorities and new methods for the post-Lisbon strategy to be defined in the coming months. Reforms should be accelerated by identifying clear specific priorities, with feasible and verifiable roadmaps.

6.5

In the EESC's view, the manufacturing and services sectors in Europe should be developed by upgrading processes and products. The EESC calls on the EU to take firm action in this regard.

6.6

The EESC believes that such an industrial strategy should include:

6.7

The specific situation facing SMEs has to be addressed, especially with respect to lack of access to credit and loans. At present, funds dedicated to SMEs are not fulfilling their purpose.

6.8

The Small Business Act, on which the Committee issued an opinion (29), ‘falls short of what is required, particularly in these difficult economic and financial times’, as it is not adequately funded. It is however important to ensure full, timely and systematic application of the Act in the Member States.

6.9

As the Committee has frequently emphasised that, in addition to providing access to credit, it is particularly important under present circumstances to:

6.10

With regard to specific sectors, following a wide-reaching public consultation, the Commission had earlier identified a series of manufacturing sectors where stimulus and revitalisation action should be concentrated. Six markets were identified for the initial stage of the lead market initiative (31):

6.11

The method used by the Commission should be applied to other sectors. This means identifying the areas where concerted action through key policy instruments and framework conditions, as well as reinforced cooperation between key stakeholders, could speed up market development without interfering with competitive forces (32). The same could be said for the development of the European defence industry, which should be covered by a more coordinated European policy following the establishment of the European Defence Agency and the progress made in terms of joint security (33).

6.12

In order to make European industrial policy effective, we need to take into account the specific context of individual sectors, including the automotive sector (cars, trucks and motorcycles (34), the chemicals sector, shipbuilding, coal and steel, construction, glass and ceramics, cements, textiles and clothing, the agrifood sector, mechanical engineering, the electromechanical sector, aerospace, IT, telecommunications, energy, and health services.

6.13

The EESC also considers that in order to support the introduction of innovations, it is essential to further develop newly created industrial policy instruments such as the Joint Technology Initiatives, innovative public procurement, and the action plan for sustainable production and consumption.

6.14

The EESC also believes that the liberalisation of the services sector should be stepped up, especially with regard to the services of the liberal professions and persistent tariff and numerus clausus restrictions.

6.15

The EESC strongly advocates a Community initiative to support the business services sector, developing innovative services and content of benefit to citizens, consumers, workers and companies, speeding up the shift to digital services and the widespread introduction of broadband, and removing barriers to e-government and systems interoperability.

6.16

The EESC believes that the common foreign policy should be strengthened and made more stringent vis-à-vis relations with the rest of the world.

7.1

The EESC has supported (35) and continues to support initiatives to develop sustainable extraction, production and consumption policies, fully integrated with other EU policies, in order to turn potential challenges into competitive opportunities.

7.2

The EESC is convinced that EU action should continue to set ambitious targets, supported, however, by legislative and financial instruments that do not undermine Europe's competitiveness by placing greater burdens on businesses and citizens but support positive practices and processes for innovation and technological improvement.

7.3

The EESC reiterates the importance of launching appropriate initiatives to assume international leadership in energy efficiency, extending renewable energy production capacity and developing CO2 capture technologies.