Industrial competitiveness

The performance of European industry is closely linked with its competitiveness, which refers to the competitive position in the world market. This competitive performance is influenced by the business environment, which in turn is created by the regulatory framework both at national and European level.

A strong, competitive and diversified industrial manufacturing value chain is vital for economic well-being in Europe. A competitive industry can lower costs and prices, create new products and improve quality, thus contributing to wealth- and job creation and productivity growth throughout the economy. Manufacturing industry and the associated business services (industrial base) account for more than 50% of private sector employment; 75% of exports, and 80% of private R&D in the EU. Many service industries such as transport, health and Information and Communication Technologies (ICT) depend on competitive industry to produce the equipment and hardware which they use. Consequently, a strong and competitive industrial base is essential for of growth and jobs as well as restoring sustainability to the EU economy. Industry is also a key source of innovation and solutions required to meet the societal challenges facing the EU.

Industrial policy

The role of industrial policy is to promote and enhance the growth of industry. Thus, the Europe 2020 flagship on integrated industrial policy aims to enhance the competitiveness of EU industry.

Monitoring

Article 6 in conjunction with Article 173 of the Treaty on the Functioning of the EU stipulates that in the area of industry the European Union can only carry out actions to support, coordinate or supplement the actions of the Member States. That is why monitoring and reporting on Member States' competitiveness and industrial polices is an integral part of the Commission's industrial policy activities.

Performance analysis

Furthermore, modern industrial policy requires up to date and reliable information on market dynamics and trends. That is why, DG Enterprise and Industry systematically analyses the performance of European industry and its sectors as well as the trends and factors influencing industrial competitiveness.