Europe 2020: industrial policy centre-stage

1. Europe needs industry: Industry needs social dialogue and worker participationJudith Kirton-DarlingIndustrial Policy Advisor

2. Europe 2020: industrial policy centre-stage • Industrial policy is rapidly losing its tarnished image as a concept as a result of the economic crisis: different definitions • Recognition that Europe needs a strong manufacturing base and a diversified industrial fabric, but this must address new social needs, guarantee good quality jobs and long-term employment prospects for workers throughout Europe, and creating added-value for the European economy

3. Manufacturing workers’ vision • On the 18-19 October: EMF, EMCEF and ETUF:TCL • 6 common principles for a strong and credible European industrial policy capable of tackling the challenges of the aftermath of the economic crisis, climate change and intensifying globalisation pressures • A strong social dimension to industrial policies • Growth-oriented macroeconomic and wage policies • A concrete industrial investment agenda • A fair transformation towards an energy- and resource-efficient industrial model • An effective European energy policy • A fair level-playing field internationally

4. Flagship initiative: EMF welcomes initiative • Proactive EU action securing manufacturing employment is to be welcomed, especially the announcements of new initiatives to be launched in the next 2 years, as well as: • The continuity in the policy approach, especially as regards the development and implementation of sectoral action plans will keep industrial policy at the top of European decision-making; • The recognition that manufacturing is badly needed not only for its contribution to economic growth but also as a provider of solutions for the new societal challenges (energy, ageing society, increased speed of globalization, sustainable development), therefore maintaining and upgrading Europe’s manufacturing base becomes a primary objective of the EU; • The recognition that all sectors are important and should be invested in and upgraded, which demands concrete plans for each sector. • Nevertheless, the EMF would have expected a more concrete and ambitious programme including ambitious investment programs to create new and sustainable jobs. For the EMF, employment policy must be an integral part of industrial policy

5. 1. Austerity v. Ambition: Strategising in a sovereign debt crisis • From speculation on private debt to sovereign debt • Context of the new European economic governance agreed by the European Council (21 October 2010) • Dramatic rises in inequality and precarious work in our societies • Attacks on the foundations of our welfare states and social protection systems are intensifying • Threatens a long period of weak internal demand and the global economic situation threatens a double-dip recession

6. Fiscal policy: limited stimulus versus swingeing austerity

7. Investment has to be addressed • Danger that resources will not be available to ensure an active industrial policy at European or national level, particularly resources for the scale of the necessary infrastructure and R&D projects, and the social management of change • Wage moderation and tax competition cannot be the basis of European integration • Investment in European manufacturing must be addressed urgently: • Reregulation of the financial markets: access to credit • Financial transaction tax

8. Return of ‘Makingworkpay’ (by cuttingbenefits) • DK: Max durationfrom 4 to 2 years/becomes harder to re-earn right to unemploymentbenefits. • SE: Lowerbenefits, higherfees. Feesdepending on unemploymentrisk in sector. • DE: Benefitcuts for long termunemployed • CH: Durationreduced, job suitabililtycriteriastrengthened. • ES: TAW agenciesget a say in grantingbenefits to workers.

9. 2. Industry needs Social Europe • Industry cannot flourish without a solid social Europe guaranteeing high quality jobs, education systems, and a strong domestic demand • ‘Competitiveness’ must be based on innovation, industrial investment and social and environmental quality not undermining working conditions, purchasing power and domestic demand • increasing job quantity and quality as an indicators of success for the Europe 2020 strategy

10. Social dialogue and worker participation • Current EU flexicurity policies are inadequate to achieve these aims • New rights at work to ensure the socially responsible anticipation and management of change, credible life-long learning through guaranteed individual rights to (re-) training, active labour market policies including all categories of worker regardless of contract, and the promotion of social and economic security • Social dialogue is not something that should be organised only in periods of restructuring. Instead there should be a permanent dialogue on industrial strategies. Workers should be a partner in the strategic decision-making processes

11. Workers participation should be ‘mainstreamed’ • Sectoral plans – worker involvement • Single market – based on the respect for social rights • Innovation policy – worker-based innovation/social innovation/involvement in R&D strategies • Energy and climate change – Just Transition (anticipation/involvement-dialogue/investment) • Trade policy – respect of labour rights