Manufacturing and services: challenges for the new Commission

Joanna ZawistowskaDG Internal Market and ServicesEuropean Commission

Priorities of the new Commission

• • New Boost for Jobs, Growth and • Investment

• • Deeper and Fairer Internal Market with a • Strengthened Industrial Base

• • Connected Digital Single Market

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Challenges facing the EU economy

• • Growing international competition, including in EU growth sectors (business services)

• • Barriers to internal market remain and growth potential of Single Market not fully exploited

• • Declining share of manufacturing in GDP

• • Capitalising on the digital revolution and potential of Industry 4.0

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New reality and new challenges

• • New structure of the Commission and internal reorganisation to better respond to future

challenges

• • Need to respond to calls for action from the MS:

• state of play of the Internal Market for Services

• revitalisation of industry

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Industry performing well, but at risk

Very competitive on international markets, with a trade surplus of over € 450 billion euro in 2013…

With a declining EU share of value added in the manufacturing sector worldwide and a loss of 3,5 mn jobs since 2007

but...

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Services input in the economy is growing

Services account for 71% of EU GDP and 67% of EU employment

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The share of manufacturing output in the economydecreases but the share of services increases (1995-2011)

Services are increasingly intertwined with manufacturing

Input/output links go in both directions:

• Services are important inputs for manufacturing with 40% services input into final manufactured goods (e.g., business services)

• Manufacturing is an important input to services (e.g., construction, transport services)

In addition, service providers and manufacturers are providing integrated services/goods solutions

Value added in manufacturing in the EU2011 (value chain approach)

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Europe needs is an Internal Market for Goods and Services, with a strengthened industrial base and a strong digital angle.

• Key ingredients:

• 2015 Single Market Strategy for goods, services and procurement

Renewed strategy for services, key sectors: business services, retail, construction

Single Market in products Smart procurement

• Smart and Clean Industry, key objectives: modernize and revitalize the European industrial sector; grasp the opportunities offered by new technologies

• Digital Single Market

These initiatives respond largely to the recommendations of the HLGBS8

Renewed Services Strategy

State of play:

•• Stakeholders' workshops and on-line consultation

•• Economic impact of remaining barriers

•Actions:

• Better enforcement of the Services Directive

• Renewed service strategy to tackle issues of legal framework fragmentation, administrative burden, insufficient information provision, lack of mutual recognition of standards and certificates.

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Single Market in Products

• • Enforcement of existing legislation

• • Simplification and Better Regulation

• Link between goods and services

• Extending the Single Market beyond EU borders

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Smart Procurement

• • support the transposition and implementation of the new legislative package

• • country and sector approach to identify real issues and tackle them

• • professionalization of public procurement and support to SMEs

• • emphasis on e-procurement

• • public procurement as a tool for the new EU industrial policy

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Smart and Clean Industry

•• Digitization and the inter-connectivity of traditional

industry•

• Integration of intelligent services industry

• Adoption of clean technologies and sustainability

• • Horizontal measures (access to finance, skills, business environment, internationalization)

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Digital Single Market• DSM VP Ansip, cooperation of several commissioners• aim to generate up to € 250 billion of additional growth• horizontal policy, covering all sectors of the economy and of

the public sector• level playing field and simplification for businesses • wider access for consumers

• Ambitious actions already in the first six months:

• modernising copyright rules • more ambition to the ongoing reform of telecoms rules• modernising and simplifying consumer rules for online

purchases

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Thank you!

Joanna Zawistowskajoanna.zawistowska@ec.europa.eu

Further informationInternal Market website:http://ec.europa.eu/enterprise/index_en.htm

Stakeholders' questionnaire:http://ec.europa.eu/eusurvey/runner/businessexperiencesservices

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