Germany and France initiated the idea of establishing an industry strategy. Europe was the first place in the world to carry out industrialization. Made-in-Europe products are favored for their high quality. Europe’s major industries include metallurgy, manufacturing, chemicals, food processing, and consumer goods production.
Increasing competitiveness
German Chancellor Angela Merkel said that she and French President Emmanuel Macron have proposed discussing the issue as they try to “secure jobs for the future in strategic business areas in Europe. She pointed to “strategic research and innovation projects” such as a German-French push to create a car battery consortium aimed at catching up with Asian rivals. Merkel says Germany and France hope to win over other European Union countries to their ideas for a “European industry strategy” at this week’s summit.
Berlin and Paris last month launched a drive for a “European industrial policy,” including a push to overhaul EU competition rules and set up mechanisms to protect regionally developed technologies.
The two countries proposed giving the European Council the right to override the decisions of the European Commission on competition in some situations, to boost European companies’ ability to compete internationally.
In a joint proposal released last month, France and Germany suggested updating current merger guidelines to take greater account of competition at the global level. Berlin and Paris have been wanting to overhaul EU mergers rules following the European Commission’s veto of efforts by Siemens and Alstom to create a European rail group to compete with large foreign rivals.
A few years ago, the European Commission proposed priorities for Europe’s industrial policy stressing the importance of industry in boosting growth and generating jobs. The EC urged the application of the digital technology to boost Europe’s productivity, reshape business models, and create new products and services. The EC also set up the Strategic Policy Forum on Digital Entrepreneurship to promote the digital transformation of industry and other enterprises in Europe.
In its Industrial Policy Communication 2012, the EC identified six priorities, three of which concern advanced manufacturing, key technologies, and smart networking and digital infrastructure.
Challenges
The 4th Industrial Revolution is requiring European countries to invest heavily in technology and industry. Europe needs new industries and modern facilities in high-tech centers. It has not been easy to get a European Industry Strategy approved by other EU countries because it depends on the orientation of each country, the advantages of their industries, and market shares and national interests.