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EU local and regional authorities contribute to the
mid-term review of Europe 2020
Assessment of the flagship initiative
An industrial policy for the globalisation era
Almost three years after the launch of Europe 2020, the Committee of the Regions has launched a broad assessment of the Strategy in preparation for its mid-term review, expected in 2014.
As part of this assessment, the replies to this questionnaire on the state of play of the flagship initiative Anindustrial policy for the globalisation erawill be discussed at a conference to be held on 10 April2013 in Brussels.
This conference will be the third in a series of CoR events and monitoring initiatives on the Europe 2020 flagship initiatives, preparing the mid-term review in 2014. More news on this conference can be found on the CoR website[1].By participating in this survey, you will:
- ensure that your views are taken into account in the debate held during the conference;
- contribute to the CoR's consultative activity over the coming months, to include an opinion drafted by Claude Gewerc, President of Picardy Regional Council (PES/FR), scheduled for adoption at the CoR plenary session on 10-11 April 2013;
- contribute to the fourth CoR Monitoring Report on Europe 2020, to be published in October 2013;
- contribute to the mid-term review of Europe 2020 in 2014.
If you wish to participate in this survey, please complete this questionnaire in any eu language, using the spaces provided, and return it in text format to:
by 1 March 2013
The questionnaire will be available in all languages in mid January
For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to:
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Contributor information[2]
Name of sender: / Dr Stephan LeenenContact details:
(address, telephone, email) / Stadt Achim
Obernstraße 38
28832 Achim
Tel. +49 (0) 4202 9160 240
Email:
On behalf of:
(name of local or regional authority) / Achim
Type of organisation / City/Town/Municipality Region
County/ProvinceAssociation of local and/or regional authorities
Other (please specify)
Country: / Germany
Member of the EUROPE 2020 Monitoring Platform: / Yes No
Current policy challenges and responses at regional and local level
1)What are the main challenges faced by industry in your region/city?Please answer with respect to competitiveness (market trends; positioning in the market; competitors) and employment (finding the necessary workforce with the right skills; ability to create new jobs).
As a medium-sized settlement in the suburbs of Bremen, Achim has a diverse economic structure, based mostly on small and medium-sized enterprises. Local SMEs provide jobs, training and innovation, and they represent the backbone of the local economy. Economic globalisation is presenting the town with major challenges. Manufacturing sites are becoming more concentrated, with more and more land needed for logistics companies and service providers. At the same time, finding appropriate sites and financing them is becoming harder and harder. Demographic change is impacting on the training market. Skilled labour and suitable candidates for regulated professions in trade and industry are becoming scarce.
2)Do these challenges differ from thosefaced in 2010 (when the Europe 2020 strategy was launched)? If so, in what respect?
Please make a distinction between structural problems and problems resulting from the impact of the economic and financial crisis.
Economic development in Achim is characterised by a structural shift from manufacturing to services. Rapid changes in the world of work are happening at the same time as demographic change and increasingly precarious employment conditions. At the same time, local authorities are being forced to reorganise their finances and cut back municipal services. Many employees do not have enough financial security. This will place a major burden on future welfare systems, and will fundamentally affect our still relatively prosperous society. Ordinary citizens are being asked to foot the bill for the financial crisis and consolidating government budgets. In the longer term, all of this presents major financial and social risks for the future. Instead of re-thinking our social values, the issue of future social and economic viability is being reduced to economic criteria. This trend could hardly have been anticipated in 2010.
3)How are your regional/local policies addressing these challenges?
Please make clear whether you are (i) working on the basis of a local/regional industrial strategy; (ii) providing direct support to firms and networks/clusters; (iii) encouraging stronger relationships between firms, universities, public and private research institutions; (iv) improving the business environment, including through administrative simplification; (v) undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions.
Please provide examples (or at least web references[3]).
Achim is a founder member of two innovative networks of medium-sized businesses, Ingenieur-Kompetenznetzwerk Oberflächentechnik (Surface Engineering Skills Network, I-KON; and Bamboo Technology Network Europe ( We provide local businesses with intensive consultancy services on funding for investments and skills, working in close cooperation with Verden district, professional chambers and other partners in a consultancy network. As a municipal provider of business support services, we also belong to a trans-regional network, and advise school leavers and SMEs, for example on how to apply for funding. Thanks to convergence funding (ERDF) from Verden district budget, we are able to work with a strategic external partner to provide consultancy services on innovation funding for businesses.
BOX 1 – An Industrial Policy for the Globalisation Era
The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era, adopted by the European Commission on 28 October 2010, sets out a strategy that aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs while becoming more resource-efficient[4]. The flagship initiative highlights ten key actions for European industrial competitiveness:
- "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
- "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
- making it easier for SMEs to access credit and facilitating their internationalisation;
- a strategy to strengthen European standardisation;
- more efficient European transport, energy and communication infrastructure and services to serve European industry;
- a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
- addressing sector-specific innovation performance with specific actions, in such areas as advanced manufacturing technologies, construction, bio-fuels and road and rail transport, particularly with a view to improving resource efficiency;
- actions to improve framework conditions and support innovation in energy-intensive industries;
- a space industrial policy creating a solid industrial base and covering the whole supply chain;
- reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.
You can find more information on An industrial policy for the globalisation era,seen from the point of view of local and regional authorities, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy. Handbook for Local and Regional Authorities[6]. General information on Europe 2020 can be found on the strategy's official website[7].
How is the Europe 2020 flagship initiative An industrial Policy for the Globalisation Era relevant to your city or region?
4)With respect to industrial policy, how would you evaluate the support your city/region has received from EU policies so far? Was it sufficient in view of the challenges you are facing in this area? As concerns EU-financed investments, in which area has more added value been created (e.g. infrastructure, skills, innovation, etc.)?Please answer with reference to the various existing strands of EU policy (Europe 2020 flagship initiative "An industrial policy in the globalisation era", Structural Funds, 7th Framework Programme, Competitiveness and Innovation Programme, etc.).
Please comment both on the policy tools used and on funding.
During the current 2007-2013 period, Achim is a convergence area. Thanks to the Structural Funds we have been able to develop new business sites, which could not have been funded solely from municipal resources. With the help of the ESF we were able to support local SMEs in training their employees, thus enabling businesses to prepare for the future. Through the "Educational Success through Diversity", a social project, we have been able to involve residents of an urban district facing various problems. In this project institutions work together with residents to promote long-term integration of people from migrant backgrounds. After initial funding came to an end, the project was continued by municipal employees.
Multilayered and complex challenges arising from social and economic change also require multifaceted political measures and responses. Research and development, education, training, lifelong learning and specific measures to support regional economic development are key areas in the Europe 2020 strategy. In my view, successful implementation of the strategy will require us to steer a difficult course between a growing requirement to monitor achievements and evaluate whether targets have been met on the one hand, and an urgent need to cut red tape for funding applications and documentation (making it possible for grant recipients to combine subsidies). Allocating part of the funding through regionalised funding at district level has proved effective. The strategy can only be implemented successfully if it takes local and regional concerns into account, because it is at this level that stakeholders can be reached and economic, creative and innovative potential unlocked.
5)The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era[8] (see Box 1 above),as reviewed by the Commission Communication A stronger European industry for growth and economic recovery[9]of 10 October 2012,sets out a "renewed industrial policy" based on the four pillars presented in Box 2 below.
Which of these pillars are more relevant to your specific local/regional situation?
The four strategic pillars of a future-oriented industrial policy are of close relevance to regional and local development. It is of decisive importance to design these pillars in such a way as to make them accessible to SMEs and local stakeholders. Rules on funding for skills and innovation must be simple, transparent and manageable for local businesses. With regard to international markets, the first step is to simplify and align fiscal, legal and other rules within the EU. All measures should be continuously monitored and evaluated from the perspective of prioritising SMEs. Only arrangements which can be proven to help achieve goals should be retained. At the same time, local authorities should be given an opportunity to implement model social innovation projects and to reach out to target groups which are not yet sufficiently integrated, by means of cooperation through multi-level governance and local networks.
BOX 2 - An industrial policy for the globalisation era: 2012 update
The flagship initiative on industrial policy, as reviewed by the Communication of 10 October 2012, places more emphasis on short-term, growth-enhancing measures resulting from the economic crisis and its impact on EU industry. The flagship initiative is based on an extensive consultation of stakeholders carried out in the first half of 2012, which highlighted the impact of the crisis in terms of job losses, the decline of industrial production and very low business confidence. Those short-term problems go hand in hand with EU industry's structural competitiveness problems. The European Commission's response is based on these four “pillars of the reinforced industrial policy”, to be addressed through partnership involving the EU, its Member States and industry:
Investments ininnovation, with a focus on six priority areas with great potential (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; smart grids).
Better market conditions, both in the internal market, with special reference to goods, entrepreneurship and the protection of intellectual property rights, and in international markets.
Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.
Human capital and skills, to promote job creation and better anticipation of, and investments in, the skills needed to promote industry's competitiveness[10].
Are your country's policies relevant to your city or region?
6)To help meet these objectives, your country has set its own targets, which you can find at Are your country's targets appropriate to your local (regional) situation?Please explain, bearing in mind that "An industrial policy for the globalisation era" can potentially contribute to at least the following Europe 2020 targets:
in a quite direct manner: 75% of the 20-64 year-olds to be employed; 3% of the EU's GDP to be invested in research and innovation (public and private investment);
- in an indirect manner: 20% less greenhouse gas emissions than in 1990; 20% of energy from renewables; 20% increase in energy efficiency.
Under the Europe 2020 strategy, countries have set themselves ambitious goals. Budget consolidation policies are necessary and require targeted, efficient and sustainable use of funding in order to achieve the objectives that have been set. In order to successfully and sustainably achieve goals, strategic approaches have to be geared to regional and local conditions. These objectives must be supported through the right framework, with economic policies and financial engineering enabling local authorities, businesses and institutions to use these instruments in line with local conditions. Objectives can only be achieved when investments, model projects, more user-friendly funding and application and management procedures involving as little red tape as possible can be implemented on a broad basis. The "purely technical" targets for CO2 reduction and increasing the share of renewable energies should be met, even though various problems have to be overcome. However, labour market targets (an employment rate of 77%, and a reduction to 330000 long-term unemployed) and educational targets (school drop-out rate = – 10%) could be harder to meet. Politicians (multilevel governance), educational stakeholders, representative organisations (professional chambers and associations), institutions (Federal Employment Agency) and local economic players will have to work together to achieve these goals.
7)Do you think that the industrial competitiveness policies set in your country's current (2012) National Reform Programme[11]meet the needs of your city or region?
If not, how would you change your National Reform Programme next year?
Annual national progress checks (evaluation) and the quarterly report agreed at EU level should be used as programme management instruments. Experiences should be regularly exchanged between all partners at regional conferences, to ensure that programmes are geared to regional needs.
8)Which measures in the field of industrial competitiveness policycould be more helpful in the short term?
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Managing and funding issues
9)Is industrial competitiveness policy in your region/city adequately funded? Apart from EU funding (which you described in your reply to question 4) to what extent did you have recourse to other sources (e.g., PPPs, financial engineering)? Do you think you will have enough funds to run your policy programmes in this field in the future?In order to relieve pressures on the municipal budget and make use of private partners' skills, Achim is using a PPP approach to building new schools. To manage the development and sale of our business and industrial sites, the city got together with a regional financial institution to set up a marketing agency to develop sites and to manage land sales.
10)What kind of cooperation/coordination takes place between your region/city and the national and EU levels in the fields of industrial competitiveness policy?
Do you see any room for even stronger cooperationbetween different tiers of government in this field? If so, please explain.
Achim is using its contacts to the Lower Saxony regional government and Nbank, the Lower Saxony investment bank. We are also getting support from a consultancy company engaged by Verden district to provide assistance with EU funding issues. Parliamentary representatives from our region are also in touch with the regional parliament, German Federal Parliament, European Parliament and the relevant ministries.
11)Are theforthcoming Partnership Agreements/Contracts(under the new 2014-2020 cohesion policy)an opportunity for better coordinationbetween different tiers of government in the field of industrial policy? If so, why? And what could be the role of the different stakeholders (other levels of government and other stakeholders)?
At present, these matters are not dealt with at local level. In our view, a bottom-up approach complementing these top-down arrangements will be needed to ensure programmes are successfully implemented in the new cohesion policy period.
12)Please addany further comments you might wish to make on the matters dealt with in this questionnaire.
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SHARE YOUR GOOD PRACTICE
With a view to the CoR conference to be held on 10 April2013 and the exhibition of good practices in the fields covered by An industrial policy for the globalisation era, you might wish to submit an example of good practice. To do so, please complete the form available on our website:
/ JOIN THE EUROPE 2020 MONITORING PLATFORM
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THANK YOU FOR YOUR COOPERATION!