EC outlines plan to raise manufacturing to 20% of EU GDP

11 Oct '12

5 min read

Better market conditions – improvements in the functioning of the Internal Market and opening up international markets. The Commission will concentrate on selected themes where significant improvement can be achieved quickly: improving the Internal Market for goods, fostering entrepreneurship with regards to the digital single market which is expected to grow by 10% a year up to 2016, protecting intellectual property rights and further promoting the internationalisation of EU SMES around the world, reaching 25% (from 13%) in the medium term.

Access to finance and capitals – to improve lending to the real economy by better mobilising and targeting public resources, including those of the EIB – which should allocate between EUR 10 and 15 billion in additional lending for SMEs - and of the Structural Funds, and by unlocking private funds through the elimination of remaining obstacles for venture capital funds and the facilitation of cross-border operations by smaller companies.

Human capital and skills – equipping labour force for industrial transformations, notably by better anticipating skills needs and mismatches. In this area, the Commission will in particular further promote cooperation of employers, workers and relevant authorities through the creation of European Sector Skills Councils and of Knowledge and Sectors Skills Alliances.

In order to ensure the proper implementation of these actions, the Commission will closely monitor a number of key variables.

1. Investment

Gross fixed capital formation as a share of GDP was 18.6% in 2011. Before the crisis, it reached 21.25% of GDP in 2007. The investment effort needed to improve our productivity would require pre-crisis investment levels in 2015 and average levels of above 23% until 2020. Investment in equipment is currently between 6 and 7% of GDP. To improve of productivity and introduce new technologies it should recover pre-crisis levels and grow sustainably at rates above 9% of GDP until 2020.

2. Internal market trade

Trade in goods in the Internal Market is currently just below 21% of GDP. In a reinvigorated Internal Market, this rate should 25% by 2020.

3. SMEs

In conformity with Commission aspirations for the Digital Agenda flagship Market, the number of small firms engaging in e-commerce selling should increase to reach 33% by 2015. The proportion of SMEs exporting inside the Internal Market was 25% according to the 2009 survey. The medium-tem objective is to have SMEs equally engaged in market outside the EU as within the internal market.

European Commission (EC)

More European Commission News... More Textiles News - Europe...