- 2 -
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 An industrial policy for the globalisation era will be discussed at a conference to be held on 10 April 2013 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:
http://portal.cor.europa.eu/europe2020/
CDR1755-2013_00_00_TRA_TCD .../...
- 3 -
Contributor information[2]
Name of sender: / Juan José Lirón Lago. Director of GNP-EGTCContact details:
(address, telephone, email) / Calle Eduardo Cabello s/n (edificio CETMAR), Bouzas
36208 Vigo (Pontevedra)
Telephone: +34 986135126.
E-mail:
On behalf of:
(name of local or regional authority) / European Grouping of Territorial Cooperation – Galicia-North of Portugal (GNP-EGTC)
Type of organisation / City/Town/Municipality Region
County/Province Association of local and/or regional authorities
Other (please specify)
Country: / Spain
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).
The main sectors of industry in our area are the ship-building and automobile sectors. Also important are the chemical, wood, extraction and processing of stone (granite and slate) and textile sectors. All of these sectors are being affected by the economic and financial crisis, particularly by the reduction in demand and the difficulty in accessing funding. Industrial relocation processes, which had not been tackled previously, have weakened local industry.
Despite having a good reputation on the market, the strong competition from emerging countries (in the case of automobiles) and other European countries (in the case of ship-building, given the problems of tax-lease) has weakened its market position. Countries with lower environmental requirements, such as China and Brazil, are gaining ground. With regard to employment, it is difficult to create jobs against a backdrop of falling demand and financial difficulties.
2) Do these challenges differ from those faced 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.
The challenges were similar, but not as serious. Now that the economic and financial crisis has become more serious and has lasted so long, these problems, which before were tolerable, are now having a much greater impact on the industry in this area.
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]).
Regional policies focus on various lines for tackling the main problems and challenges facing the sector:
- Support for R+D+i
- Support for improving business management and facilitating the creation of new companies, promotion of entrepreneurs
- Support for the financial situation of companies (cash flow)
- Support for internationalisation.
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:
1. "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
2. "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
3. making it easier for SMEs to access credit and facilitating their internationalisation;
4. a strategy to strengthen European standardisation;
5. more efficient European transport, energy and communication infrastructure and services to serve European industry;
6. a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
7. 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;
8. actions to improve framework conditions and support innovation in energy-intensive industries;
9. a space industrial policy creating a solid industrial base and covering the whole supply chain;
10. reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.
These actions are implemented through more than 70 measures, whose state of play can be found on DG Enterprise and Industry's website[5].
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.
The support provided by EU policies has been positive, although two situations should be stressed in which it has not been as effective as it could have been. Firstly, support has been linear, taking almost no account of the economic cycles that affect the different countries and regions. Secondly, it has not been able to tackle the problem of industrial relocation which has been ongoing for several years, and nor has it resolved the industry’s funding difficulties resulting from the crisis.
With regard to EU-funded investments, we believe that the greatest added value is provided by financial support and support for R+D+i, and in our region we would also stress transport and communications infrastructures, as well as support for R+D infrastructures such as technological centres, clusters, etc.
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 two most relevant pillars here are:
- Investment in innovation
- Access to funding and capital markets
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:
ñ Investments in innovation, 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).
ñ 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.
ñ Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.
ñ 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 http://ec.europa.eu/europe2020/pdf/targets_en.pdf. 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.
National objectives are in line with regional objectives and are tailored to the local situation. They are therefore more ambitious, requiring more than the European average, in those areas which are starting from a more favourable position, as in the case of target 3 (from 40% to 44%), where the situation is Spain is rather positive. On the other hand, they are more cautious where the situation is more difficult and targets 1 and 2 have therefore been lowered slightly (from 75% to 74% and from 10% to 15%).
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?
The National Reform Programme is very ambitious and is well tailored to the regional context.
8) Which measures in the field of industrial competitiveness policy could be more helpful in the short term?
In the short term, the main measures required by regional industry, not just in order to increase its competitiveness but in some cases in order to ensure its viability, is financial support. In the medium term, promoting R+D+i is crucial in order to foster greater industrial competitiveness.
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?No, a lack of funding is hindering the action of regional industry.
Credits from the European Investment Bank have been and remain another source of funding.
Finally, future funds will not be sufficient to implement the intended policy programmes for industry. The lack of funding will probably prevent some actions from being implemented, and this will cause considerable harm.
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.
Regional industrial competitiveness policy is based on national policy, but takes account of the characteristics of the region. Similarly, national policy is coordinated with European policy. With regard to cross-border cooperation between Galicia and the North of Portugal, our GNP-EGTC is responsible for promoting better cooperation, combining efforts and making use of synergies in order to achieve greater joint industrial development.
Better application of the subsidiarity principle would lead to closer cooperation between different levels of government, since policies will be more effective if applied closer to their beneficiaries. Furthermore, efficient distribution of competences would also be positive.
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)?
We hope that the forthcoming partnership contracts will help to achieve better coordination. As we pointed out previously, the subsidiarity principle should be applied as far as possible. One example of cross-border cooperation would be for European Groupings of Territorial Cooperation (EGTCs) to manage operational programmes in the framework of the new cohesion policy, as provided for in the regulation on territorial cooperation or the regulation on EGTCs. The Member States would, for their part, then support those regulations.
12) Please add any further comments you might wish to make on the matters dealt with in this questionnaire.
......
SHARE YOUR GOOD PRACTICE
With a view to the CoR conference to be held on 10 April 2013 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:
http://portal.cor.europa.eu/europe2020/MonitoringFlagships/Pages/Welcome.aspx
/ JOIN THE EUROPE 2020 MONITORING PLATFORM
To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your country, join us. For details on how, see: http://portal.cor.europa.eu/europe2020/Knowledge/Pages/BecomeaMember.aspx
THANK YOU FOR YOUR COOPERATION!