INDUSTRY: EU PLANS NEW INDUSTRIAL POLICY TO COPE WITH GLOBALISATION.

• Position: European Union - Brief Article

"The industrial structure of the EU economy as a whole is far from putting it in a strong position to deal with the current globalisation process", the Commission remarked tersely in a statement on October 5. Despite satisfactory performances in many sectors, it believes that industry in the EU is still threatened by competition from emerging economies, in particular China and India. "Adaptability and structural changes" are the two key elements that will enable European industry (which represents 20% of the EU's GDP and 80% of its exports) to profit from globalisation and curb de-industrialisation in Europe.

A response to the member states.

Gunter Verheugen's new strategy comes in response to demands made by several member states, at the beginning of the Barroso Commission, for a well-founded European industrial policy. France and Germany have frequently criticised the Commission for making it easy for their competition, to the detriment of European industry. He confirmed that the matter was no longer "being treated as before" and added that industry's future is vital in maintaining foreign trade, supporting the services sector in Europe and protecting employment in the EU. Here, he will need to work with his colleague in charge of competition, Neelie Kroes, who has successfully campaigned to co-chair the high-level panel on competition, energy and the environment.

Furthermore, Gunter Verheugen has ruled out any possibility of resorting to protectionism, subsidies or preferential treatment for Europe. "There is no going back", he warned, as he set himself the task of helping industry to deal with global competition and not to protect it. He believes that European industry will benefit from an open market and that all that is needed is to make it more competitive. In response to French and other criticisms, he added that the role of guiding industry's choices belonged to companies and not to either the Commission or national governments. The Commission is nevertheless willing to listen to industries with legal concerns and complaints provided that they do not involve protectionism, he added.

The Commissioner also stressed the responsibility of both member states and industry in making the strategy a success, recalling that the Commission had no competence to impose in any way. He insisted on the importance of listening to and applying recommendations made by the high-level panels and to be sure not to follow the example of the textiles...