CCMI 20th anniversary - Key note address

Dear CCMI members and delegates,
Ladies and Gentlemen,

I am delighted to welcome you to the 20th anniversary of the Consultative Commission on Industrial Change – the CCMI of the EESC. Among EU actors, the CCMI is the oldest EU body devoted solely to forecasting the future of industry and accompanying industrial change. It succeeded the Consultative Committee of the European Coal and Steel Community when this expired in 2002. Over the last twenty years, technology has radically transformed our society, economy and our daily lives. Globalisation, the digital and green transitions, the COVID-19 pandemic, war in Ukraine – we are facing many challenges. And the CCMI constantly adapts to address these challenges. The CCMI covers the traditional coal and steel industries but also the impact of industrial change on all industrial and service sectors. We are convinced that the work of the CCMI is now more important than ever in the current geopolitical context!

Its current activity focuses on the implementation of the new industrial strategy. In view of the twin green and digital transitions, it's our key priority to ensure that European industry remains competitive globally and resilient in the future. Industrial production in the EU27 experienced a sharp decrease in 2020 due to the pandemic. The automotive industry was one of the hardest hit industries. In the first half of 2020, the EU automotive industry suffered production losses of 3.6 million vehicles. That reflects a loss of 100 billion euro. Another example is the aerospace industry. As demand for civil aviation collapsed, aerospace manufacturing decreased overall by 43% in 2020. That is why the CCMI has recently focused its work on these sectors as well as others, such as the health industry or resource- and energy-intensive industries.

Thanks to the joint action of the EU and its Member States, Europe was on the way to economic recovery from the pandemic. Now, the war in Ukraine is causing intensive human suffering and having a strong detrimental impact on Europe's industry. In its Spring 2022 Economic Forecasts, the European Commission had to revise the EU's growth outlook downwards, and the forecast for inflation upwards. Additional challenges for EU industry arise in particular in terms of strategic dependencies on third countries. Russia is the EU's fifth largest trade partner and Russian gas represents almost 47% of EU gas imports. Several industry sectors – in particular resource- and energy-intensive industries – have been severely impacted by the Russian invasion and the sanctions imposed on Russia and Belarus.

Moreover, Russia and Ukraine have a significant weight in imports of metals and essential raw materials to the EU. Before the war in Ukraine, dependency on critical raw materials was already high on the EU's agenda. We have to find solutions in the coming years to reduce the dependencies for more than 130 critical raw materials. Now, the need for solutions has become even more urgent. 10% of all EU raw material imports were from Russia. These are critical for several strategic industries including defence and microchip production. As an example, the EU imports 100% of our needs in palladium and Russia accounts for 40% of the total production worldwide. The CCMI will continue to analyse those issues.

These international developments have clearly shown the importance of resilience and open strategic autonomy. Together with the twin transitions, these objectives are now at the forefront of our industrial strategy. In these challenging times, we need to affirm unwavering solidarity between Member States to bolster our defence capabilities, reduce our dependencies and build a more robust economic base. To this end, the EU needs to make better use of its resources by recycling and reusing its materials. It needs to strengthen strategic and economic alliances with like-minded partners who share our core values. We must promote, share and implement best practices in Europe and work closely with international partners. Europe has the chance to be a frontrunner for a greener planet. But we will only be successful if our industry remains globally competitive while achieving climate neutrality in Europe.

The war in Ukraine only accelerated the need to invest in and deploy the green and digital transitions of our industrial ecosystems. This will enable the EU to reduce its reliance on energy and raw material imports and will reduce vulnerabilities in the digital space. Organised civil society must be involved to ensure that Europe's future is shaped in the best possible way and reflects the actual concerns on the ground. The CCMI and the EESC as a whole remain strongly committed to making a valuable contribution. 

We will continue to work together with organised civil society, the EU institutions and all relevant stakeholders to find joint solutions for the many challenges that our industries are facing. I strongly believe that a strong European industry is key for Europe's future. United we can bring change for the benefit of our industry, people and planet. Important work lies ahead of the CCMI. Today, we celebrate its 20th anniversary but also discuss the challenges ahead: our industries' future, climate neutral competitiveness and Europe's strategic autonomy.

I wish you fruitful exchanges!