1. The resolution entitled "Industrial policy in an enlarged Europe", produced by ETUC’s Executive Committee in October 2003 was a response to the Commission’s Communication of the same title, welcoming the renewed interest in a European industrial policy. It referred to the horizontal function (the creation of a general framework of conditions in the fields of infrastructure, environment, training and research) and to its vertical function (specific sectoral industrial policies). At the same time ETUC had demanded further specific initiatives, in particular sectoral work programmes and both pressed for an evaluation of the industrial policy conducted by the Commission so far and proposed detailed analyses of industry’s sectoral problems. An innovative European industrial policy must contribute specifically to stimulate sustainable private investments in industries and services.

 2. The latest Commission Communication, entitled "Fostering structural change: an industrial policy for an enlarged Europe" (COM(2004) 274 final), dated 20 April 2004, highlights the importance of having a well-targeted industrial policy if the objectives set by the European Council in Lisbon are to be met. The conclusion reached by the Commission in the Communication is that so far - contrary to some people’s fears - Europe hasn’t fallen prey to deindustrialisation, even though the impact of ongoing structural change is having negative consequences for some sectors and regions. The Commission believes that the Union’s enlargement will present industry in the old and new Member States with fresh opportunities. ETUC largely shares this view, provided that the restructuring process is accompanied by an innovative industrial policy, cushioned and shaped by social policy measures.

 3. The Commission attaches great importance to improving the general regulatory environment in a bid to boost competitiveness. As early as 1995, ETUC advocated the elimination of superfluous regulation and the streamlining of bureaucracy, which can dampen industry’s ability to innovate. At the same time, ETUC concurs with the Commission’s view that the lack of regulations can also constitute a handicap for industrial competitiveness. For that reason ETUC is reiterating its support for the Commission’s intention to complement legislative procedures with a systematic impact assessment, in which economic, social and environmental criteria are applied to an equal extent.

 4. ETUC applauds the Commission’s efforts to improve the quality of legislation at Community and Member State level. The exchange of proven regulatory practices, the development of indicators of the quality of legislation and ex-post studies on the impact of planned legislation are all important measures that the Commission should immediately take in hand.

 5. An innovative industrial policy must be systematically dovetailed with other areas of policy so that potential synergies between the various Community policies can be achieved and enhanced. The coordination this requires has to be guaranteed by the entire European Commission. In this connection, ETUC believes it is fundamentally important that the three pillars of the Lisbon Agenda (the economy, social aspects and the environment) are regarded as elements of equal value in a European industrial policy. A shortsighted approach of focussing on improving competitiveness will hardly be enough if more and better jobs are really to be created. In this context, ETUC reiterates its serious reservations about seeing a Competition Commissioner serve as a Vice-President of the next European Commission.

 6. ETUC supports the Commission’s proposals to substantially step up investment in research and development. The aim of boosting overall investment in R&D in Europe to 3% of GDP by 2010 must be attained. At the same time the quality of research needs to be markedly improved. The proposal set out in the financial forecast for 2007-2013 to double the EU’s research budget, is a step in the right direction.

 7. ETUC welcomes the initiative to present an action plan entitled "Innovation for a competitive Europe". However, ETUC expects such an action plan not only to comprise measures designed to foster technical and organisational innovations; social and cultural innovation should be viewed as equally important, for they are decisive elements in the development of human resources and can also have a positive impact on competitiveness.

 8. ETUC shares the Commission’s view that the market, by itself, is unable to guarantee a sufficient level of investment in human capital. Consequently, the expansion of sectoral and regional training funds can make an important contribution towards modernising structures for training and education. Use should be made of the European Social Funds and future European vocational training programmes in this connection.

 9. For an innovative industrial policy, sufficient financial resources are needed. The proposal to double the EU’s research budget, to increase and use more systematically the structural funds and the idea to establish a “Structural Adjustment fund” are welcomed by the ETUC. In addition it is necessary to provide sufficient financial resources for industrial policies in the EU budget. At the same time we suggest that the Commission conducts a survey on the different national industrial policies, especially on the different aid programmes. Such an assessment can promote the exchange of best practise in the Union and stimulate learning processes.

 10. Unlike the Commission’s previous Communication on industrial policy, this one attributes greater importance to regional structural and cohesion policy. ETUC strongly supports this change of tack and the proposal to establish a ’Structural Adjustment Fund’ and use it to ease the impact of economic restructuring in certain regions or sectors.

 11. The emphasis on a sector-specific application of industrial policy is in keeping with demands emanating from ETUC and the European Industry Federations. Sectoral action programmes like those announced by the Commission for the mechanical engineering industry, environmental industries, the automotive sector and the new materials sector, for example, should be specified without further delay. Whenever possible, this should be done within the framework of sectoral social dialogue with the social partners.

 12. ETUC welcomes the positive function allotted to social dialogue in the implementation of industrial policy. In future, European Works Councils should be more closely involved at sectoral level, since they can play a positive role in providing early warnings of restructuring and coming up with ways of dealing with it. The European Monitoring Centre on Change (EMCC) can provide valuable assistance in this connection.