Remarks by
Giorgio Squinzi, President, Cefic
Cefic Economic Outlook
2011 Press Briefing
Résidence Palace, Brussels, Belgium
December 13, 2011
Good morning. Thank you to the Cefic Economic Outlook Issue Team for all their hard work.
As I have the policy role in today’s briefing, I would like to focus on industrial policy – EU industrial policy. To begin with, let me first say that Europe needs a forward-looking industrial policy that stimulates investment, growth and job creation…that is sustainable too. Not an easy task.
I am aware that in this critical economic and financial period, it is hard for the European governments to stimulate investments. But I do believe that it is paramount to achieve healthier life, economic prosperity and societal progress. That is why I strongly welcome the recent proposal issued by the European Commission on the future Common Strategic framework, which can contribute to providing funds for research and innovation projects. I hope that the European Parliament and the Competitiveness Council will enrich the text during their current debates.
The task of industrial policy began already one year ago when Mr. Tajani, the European Commissioner for Industry released its Communication on European industrial policy. I called it a “great start”. It put our sector on the map for the first time in a long while. Since then, we have contributed to the process to help policymakers not only “talk the talk” but to help get them to the point where they “walk the walk”.
Globalisation needs global governance
There is a global aspect to all policy the European Union pursues. Whatever Europe decides can have a big impact on industry, including our own. So policy needs to be sensible…sensible in its approach to setting up rules within the European Union… sensible in how it translates to international agreements…sensible enough so that the right rules are in place to ensure a level playing field for international trade. It is important for us to have access to markets, undistorted access to energy, feedstock and raw materials. All of which have to be settled in global fora like the WTO.
The WTO Ministerial Conference this week, we regret that there appears to be no political consensus for improving trade rules and removing trade impediments within the Doha Round. Many countries are still suffering from the 2008-2009 crisis, and the sceptical outlook for 2012 demands real political actions to help boost growth and jobs – the best way out of current global economic and financial turmoil.
EU policymakers must push forward-looking industrial policy
As I said a moment ago, Europe needs a forward looking industrial policy that stimulates more investment, growth and job creation. Industrial policy must focus on three aspects: innovation, competitiveness, and sustainability.
More specifically, innovation in emerging technologies must be embraced by the public in order to make the next breakthroughs…breakthroughs that will help solve future societal problems. I will talk about that more in a moment. Resource efficient industrial activity is directly linked to competitiveness, as long as additional taxation is avoided. Competitiveness includes making regulations manageable for companies.
Industrial policy also means we must complete the single market, in particular for energy and logistics. European integration and the single market have helped companies grow in Europe, especially SMEs. Ninety per cent of chemicals companies are SMEs, which are important sources of lab-to-market leaps and, of course, jobs.
Chemicals sector and global competitiveness
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 us to continue to grow and export. We are doing our bit; policymakers should too, by shaping the right framework conditions…WALK the talk.
The chemical industry is a highly globalised sector, facing fierce international competition. One-third of EU chemicals production is exported outside the European Union, and in 2010, these exports amounted to €140 billion. The sector finished 2010 with €47 billion extra-EU trade surplus.
Competitiveness and Manageable Regulations
Competitiveness is another aspect of industrial policy that must include efforts by the Commission to make manageable regulations. This means regulation be put through competitiveness proofing and fitness checks applied to new and existing regulations. We will offer our help work to work on this.
Innovation and Horizon 2020
Moving on from fitness checks on the regulatory side, it’s important to move on to the marketplace. How are we going to set Europe apart? How are we going to keep “Made in Europe” world-class? It’s through innovation. And policymakers know this well. Policymakers get it.
Lab to market breakthroughs, including nanomaterials and other advanced materials, need not only financial support at times but other support measures that will help meet future challenges facing people – nine billion people on this planet in 2050. Policymakers understand that support for innovation also means making sure Europe’s workforce is armed with the right innovation skills to make those leaps.
Policymakers also realise innovation is so important that just a few weeks ago, the European Commission announced a proposal for the €80 billion Horizon 2020 funding framework for research and innovation. I fully support this. Horizon 2020 can be a key part of the process to help move forward the Innovation Union flagship under the Europe 2020 strategy. It’s an ambitious programme put on the table that could help Europe stay on the front foot in a global market. We, as Cefic, look forward to seeing it happen. Horizon 2020 will help us as long as it has a clear, results-driven focus… WALK the talk.
Summary
I conclude by saying that to keep European chemical industry on the front foot in a global market, policymakers must push through an industrial policy that works…that will see real results. Walking the talk is not going to be an easy task, but we will get there step by step.
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