The Industrial Accelerator Act launched today by the European Commission is an important step to deliver much-needed support for industries across Europe, and to introduce a Made in Europe approach that guarantees quality jobs while making the EU less dependent on fragile global supply chains.
More of the €2 trillion spent annually through public procurement across the EU must go to European companies. But awarding public contracts to companies must be made conditional on those companies delivering quality jobs and meeting social conditions. This is the case for example with the requirement included in the Act for foreign investors to keep jobs in Europe and invest in the training of workers.
The European Trade Union Confederation (ETUC) and IndustriAll Europe call for social conditions to be extended across the Act to ensure that public support only goes to companies that:
- Create and maintain quality jobs in Europe, across services and manufacturing;
- Respect workers’ right to collective bargaining on pay and conditions;
- Provide fair pay, secure contracts and safe workplaces;
- Invest in training and skills, including quality apprenticeships and upskilling.
Esther Lynch, ETUC General Secretary, said:
“Finally, after all postponements and resistances, it is very welcome that the Commission has finally come forward with the proposal for an Industrial Accelerator Act.
"The war in the Middle East has highlighted how urgently Europe needs to become less dependent on fragile global supply chains. This is why a Made in Europe approach based on quality jobs is so important. EU funding and our current procurement rules too often reward the lowest cost bidder, fuelling a race to the bottom at the expense of our own companies and workers. Instead, they should reward good companies which create and maintain quality jobs underpinned by collective agreements.
“A Made in Europe policy must mean more than changing the flag on a product’s packaging. Public money must come with some basic conditions to ensure it serves the public interest. Commissioner Séjourné said himself that European public money must contribute to creating quality jobs. Now this must become a reality. Trade unions will work with members of the European Parliament and national ministers to ensure that the Made in Europe policy delivers on the promises made to working people.”
Judith Kirton-Darling, IndustriAll Europe General Secretary, said:
“At a time of geopolitical tension, volatile energy prices and accelerating industrial restructuring, Europe cannot afford hesitation. The Industrial Accelerator Act is a step in the right direction and it is positive that, despite massive lobbying and months of delay, the Commission has brought forward a proposal to promote Europe’s industrial autonomy by defining a Made in Europe and support to low-carbon industry. But important gaps remain: social conditionalities are not yet mandatory, the scope of Union origin is still unclear and strategic sectors like steel are not sufficiently supported.
“A real European industrial strategy is starting to take shape. It is badly needed at a time when we are rapidly losing our industrial capacity, without which Europe cannot have any strategic autonomy. We need to supercharge investment in our companies, but of course that cannot be a blank cheque.
“Companies receiving public money must have to re-invest a fair share of profits into creating quality jobs, training and technology to raise productivity. This is essential after a period in which private investment has been falling despite the fact that profits have been rising.
"It is also important to clarify the scope of the Made in Europe, and make sure that it encompasses the European Union and countries that are structurally integrated into the Single Market through deep regulatory alignment and participation in its rules-based framework, such as EFTA countries, candidate countries, and the United Kingdom, where relevant sectoral alignment exists.”