Increasing EU industrial competitiveness James Watson, Director Economics Bucharest, 23 October2014

Increasing EU industrial competitivenessJames Watson, Director Economics

Bucharest, 23 October2014

Who we are?

41 members in 35 countries Representing small, medium and large

companies European social partner Staff: about 50 persons Supporting network of +50 companies (AS

Group)

2

Industry as backbone of the economyDirect and indirect employment in the manufacturing sector (2012) in 1000

Source: Eurostat (2013), WIOD (2013), calculations by IW

EU is losing global manufacturing share

Share of global manufacturing value-added

Source: UN (2013), OECD (2013), Eurostat (2013), calculations by IW

Manufacturing and Employment well below pre-crisis levels

Recommendations for an industrial compact

ECONOMY ENERGY AND CLIMATE

SINGLE MARKET

EMPLOYMENT

ENTREPREN-EUSHIP

TRADE

Industrial competitiveness throughout all policy areas

Economy

growth and structural reforms – better implementation of EU reform recommendations

sustainable public financesaccess to finance for companies

Employment flexicurity reforms on labour markets education and training sustainable pensions Economic migration

Single Market removing barriers effective enforcement fostering greater support of public opinion digital Europe

Trade

WTO negotiations Bilateral free-trade agreement Transatlantic relations Economic dimension of EU foreign policy

Conclusions – the EU can support Romanian industrial competitiveness

• Advocate for competitiveness enhancing structural reform

• Structural funds• Access to the internal market• Access to international markets