Urgent Action Needed for an EU Industrial Strategy

The European Economic and Social Committee (EESC) is urging the EU to implement a robust industrial strategy that enhances competitiveness, creates quality jobs and aligns with the Green Deal. To succeed, this strategy must be closely monitored and adapted to emerging challenges.

Addressing deindustrialisation

‘Europe faces a serious risk of deindustrialisation. Industry and climate action must go hand in hand,’ stated Andrea Mone, rapporteur for the EESC opinion on The future of EU industry in the face of high energy prices and transition costs, adopted at its February plenary session.

The EESC stresses the need for a strong economic and regulatory framework to tackle high energy and raw material costs, investment challenges in the green transition, infrastructure gaps, skills shortages and weak internal demand. A competitiveness policy focused on investment and innovation is key to fostering social and territorial cohesion.

Strategic industrial policy

Amid growing geopolitical and trade uncertainties, a resilient EU trade policy is essential. Reducing dependence on external suppliers, securing critical raw materials and balancing industrial policy with climate ambition are crucial.

Maintaining a strong industrial base requires equal attention to be paid to traditional and emerging industries. A stable energy policy offering competitive prices and supporting low-carbon investments is vital. The EESC calls for key economic reports to be transformed into actionable policies, for governance to be streamlined and for resources to be maximised. A European investment fund should be established for priority sectors.

Investment and workforce development

Increased investment, as highlighted in the Draghi report, and governance reforms are crucial. A unified single market, particularly in energy, will strengthen the EU economy. Reducing regulatory burdens, refining electricity market frameworks and improving financial tools such as power purchase agreements will aid industry transitions.

A just transition demands strong social dialogue and collective bargaining. Industrial policy must align with education and workforce strategies, emphasising research, innovation and skill-building. Investment in energy infrastructure, renewable energy and circular economy initiatives will help achieve climate goals.

The future of energy-intensive industries

The EESC also adopted a supplementary opinion on The future of EU energy-intensive industries (EIIs), proposing tailored solutions to ensure their long-term sustainability. Addressing their specific challenges is vital for the EU’s industrial future.