Europe’s competitiveness depends on strategic foresight

The European Economic and Social Committee (EESC) hosted a debate today to explore how Europe can maintain its industrial edge. Policymakers, industry leaders and civil society discussed the challenges facing industries, workers and communities. Planning for resilient industries, critical technologies, and skilled workers is now central to EU economic strategy.

Europe is facing multiple pressures right now, from rising energy costs to fragile supply chains and the growing impact of artificial intelligence. While governments are taking steps to protect jobs and domestic industry, businesses warn that international competitors are moving faster.

Speakers warned that Europe has missed opportunities in the past to better organise and coordinate its industrial policy, and that the cost of delay is now becoming visible in key sectors. Competitiveness has now become one of the EU’s most urgent economic questions, requiring concrete strategies and not short-term fixes.

The debate was organised by the EESC’s Consultative Commission on Industrial Change (CCMI), which looks at how industrial change is reshaping Europe’s economy, jobs and communities. The CCMI is starting a new five-year mandate at a moment when Europe’s industrial base is under strain, with companies facing high costs and uncertainty, and workers worrying about job security and the speed of technological change.

The CCMI, as its president Alain Coheur explained, aims to act as a 'laboratory for strategic foresight', developing practical proposals to help European industry adapt. Its priorities include strengthening strategic industries, expanding digital and clean technologies, and increasing resilience in sectors such as health, defence, mobility and energy.

'In these times of industrial change, geopolitical upheaval and shrinking civic space, the CCMI’s foresight mission has never been more vital,' said EESC President Séamus Boland. 'Delivering a Union of opportunities, security and resilience means a solid industrial base, quality jobs and skills for tomorrow, protected democratic space for innovation to thrive, competitiveness and sustainability.'

Former European Commissioner for Jobs and Social Rights Nicolas Schmit said that Europe must be ready for economic, technological and geopolitical disruptions, and be deliberate in its investment choices. 'Europe is operating in a world of uncertainty, where old assumptions no longer hold,' Schmit said. 'Industrial policy can no longer be business as usual. It has to combine investment, innovation and quality jobs if Europe wants to remain competitive and protect its social model.'

Schmit also cautioned against reading Europe’s competitiveness gap solely through comparisons with the US, noting that their headline productivity figures are heavily shaped by the dominance of a small number of technology giants and do not necessarily reflect a more balanced or resilient economic model.

Digital technology and artificial intelligence also featured prominently in the discussion. Innovation, speakers agreed, is necessary but not sufficient on its own. Without investment in skills and fair working conditions, technological change risks widening social and economic gaps rather than supporting industrial growth, leaving too many people behind.

Alexandre Embry, Vice President at Cap Gemini, Chief Technology and Innovation Officer (CTIO), and Head of the Capgemini AI Robotics and Experiences Lab, explained that advanced automation matters for Europe not just for competitiveness, but also for worker safety and wellbeing. He pointed to labour shortages, an ageing workforce and reindustrialisation as key reasons why European industry needs to adapt, adding that supporting European technology players, along with strong cybersecurity, data protection and safety standards, should be part of that effort.

Looking ahead, the CCMI will continue to focus on both traditional and emerging sectors, from steel and medicines to clean energy, digital technologies and raw materials. It will also continue to coordinate cross-cutting initiatives such as the EU Blue Deal, embedding water resilience in industrial strategy, and reinforce Europe's preparedness in defence, cybersecurity and critical medicines.

As Alain Coheur explains: 'Our industries need concrete guidance and practical recommendations to become more competitive, resilient and socially responsible.' These proposals will feed directly into the EESC’s work over the coming months, informing EU decisions on industrial policy, competitiveness and jobs.