The economic crisis: do not add the extra burden that might break industry's back

February 2009 - This was, in a nutshell, the message delivered by the Alliance for a Competitive European Industry (ACEIⁱ) to President Barroso on 25 February 2009. The participants, representing key sectors of the manufacturing industry, including CEMBUREAU, brought their active support to a number of initiatives at EU level to mitigate the impact of the economic crisis, such as continuing to invest in and modernise Europe’s infrastructure for the future (Communication from the Commission to the European Council: a European Economic Recovery Plan - COM(2008) 800 final). They insisted that more must be done and coordinated at EU level to respond with more muscle and effect.

All sectors present agreed that there is no cause for going back to protectionism but stressed that the EU must, under the circumstances, have recourse to all available trade defence tools to avoid that the EU suffer from protectionist attitudes.

It was agreed that the implementation of key legislation such as REACHⁱ and ETSⁱ should not be delayed by the crisis but, beside these, it is important for the European Commission to refrain from increasing the regulatory burden. No one really needs or wants, for example, a NOxⁱ and SO2 trading system. Is the recast of IPPCⁱ, which would result in the need to revise investment plans, really necessary? The European Commission must realise that the “rage regulatoire” is totally out of order under the dire circumstances now faced.

What is needed are measures that will help sustain demand in the short term while re-enforcing the EU’s economic and competitive potential in the future. In addition to tackling the credit problem, the European Commission should seriously consider how encouraging the construction of infrastructure may help revamp the economy in the short term while making Europe more competitive in the long term. More must be done to use this sector, which represents 10.7% of GDP, in order to overcome the crisis. Every single possibility must be grasped. In this respect, some inspiration could be drawn from Growth, Competitiveness, Employment: the Challenges and Ways Forward into the 21st Century - White Paper COM (93)700, December 1993.

Measures have already been adopted to reduce VAT on construction and to foster the development of infrastructure. Recasting the EPBDⁱ and extending it to all buildings, even those under less than a 1 000 m2 surface, is another step in the right direction, but not the Ecolabelling of construction products which would not guarantee that buildings and structures will be energy efficient.

Industry insists that, in the midst of the economic and financial crisis, a business as usual scenario is not the order of the day either in industry or in the European Commission. The manufacturing sector - an essential part of “the real economy” - can and will contribute. It would make sense to do so on the basis of a strong European initiative, rather than through fragmented national action plans. This would help avoid distortions and keep the Single Market intact.