BRUSSELS, November 24, 2011 – Cefic participated today in a special event on industrial policy hosted by the European Commission. The trade group’s director general, Hubert Mandery, joined policymakers and private sector representatives for a discussion on how best to deliver an integrated industrial policy in an era of globalization.
At the morning panel, hosted by Vice President Antonio Tajani, Mandery, outlined that the chemicals sector is a growing industry, but other regions are growing faster and competing along with Europe for investment and people with the right skills.
Mandery said: “In a globalized system, there is little room for error, be it business or political decisions. Smart decisions by policymakers and companies will be necessary to stay competitive.”
Globalisation needs global governance
Europe needs to be more sensible in its approach to setting up rules within the European Union and how it translates to international agreements, noted Mandery who was joined in the discussion by four other panelist, representing industrial engineering and auto sectors as well as the public affairs arena along with moderator and European Parliamentarian Françoise Grossetête.
Cefic sees the need for the right rules and a level playing field to be ensured for international trade, especially for access to markets, undistorted access to energy, feedstock and raw materials. All of which have to be settled in global fora like the World Trade Organisation.
EU policy-makers must push forward-looking industrial policy
Europe needs a forward looking industrial policy that stimulates investment, growth and job creation, Mandery noted when asked about how EU policymakers can set policy within a globalized marketplace. Focus must be placed on innovation, resource efficiency, and sustainability when setting policy. More specifically, innovation must be embraced by the public in emerging technologies in order to make the next breakthroughs that will help solve future societal problems.
Cefic embraces the resource efficiency roadmap, as more resource efficient industrial activity is directly linked to competitiveness, as long as additional taxation is avoided. The European chemical sector fully endorses the three pillars of sustainable development, but industrial policy has to be driven by the Industry and Entrepreneurship Commissioner Tajani.
The trade group also added that completion of the single market, in particular for energy and logistics, is needed. European integration and the single market have helped companies grow in Europe, especially SMEs, which are important sources of lab-to-market breakthroughs and jobs. The EU chemicals sector directly employs 1.2 million workers and has more than 90 per cent of its firms categorized as SMEs.
Chemicals sector and global competitiveness
The chemical industry is a highly globalised sector, facing fierce international competition. Close to one third of EU chemicals production is exported outside the European Union, and in 2010, these exports amounted to €140 billion. The sector finished in 2010 with €47 billion extra-EU trade surplus.
A message from Cefic President Giorgio Squinzi, who is also head of Mapei but unable to attend as scheduled, added: “My Company, founded by my father in Italy, is now a global player. We have benefited from the single market and globalisation. Most of our research and production is in Europe and I would like to keep it like that.
But I also want to continue to grow and export. We are doing our part; policy makers should do theirs by shaping the right framework conditions. “