Europe is struggling not to be left behind in the new industrial and technological era, and risks upsetting the system along the way. You want to support the industry with determined plans, but the enormous efforts of the US or Brussels to boost their industries against the Chinese advance, which set the pace today, can disrupt competition or the single market if they are not careful .
Whether the strategy is more beneficial than detrimental depends on its correct application, it was agreed this Wednesday at a round table on the subject this Wednesday at the XXXVIII Cercle d'Economia. "Industrial policy is essential in a process of accelerated transformation," stated Gonzalo García Andrés, Secretary of State for the Economy and Business Support. "It is essential to create conditions to carry out a transformation that allows us to position ourselves in the new economy while maintaining competitiveness", he added. Decarbonization is looming, energy autonomy is tightening and collaboration with the private sector is mandatory... But we must "do everything while maintaining the internal market, preserving equal conditions", he acknowledged.
"The industry has to be at the core of our policies. It is fundamental. This implies that it be coordinated with the rest of the policies, such as energy, trade, education...", explained Begoña Cristeto, partner responsible for automotive, industry and KPMG chemistry in Spain. Europe must seek self-sufficiency but "without falling into protectionist measures that could be more harmful." The second great challenge, in her opinion, is decarbonization, although it must be combined with the economic viability of companies.
For these transitions Cristeto asks to accelerate the deployment of the industrial Perte. "It is necessary that those funds arrive." And as much as possible to facilitate the whole process, one of the great criticisms that has been made from the business sector. "Bureaucratic obstacles cannot be allowed in the Administration of the 21st century", he pointed out. "The recovery plan is being a tremendous challenge. It wants to help companies grow, invest, transform, not cover costs. The ultimate goal is an increase in productivity," García assessed.
Aid is not ruled out, but well measured. "It is only necessary to intervene with aid when there are market failures, complementing it and not replacing it. Entering into a subsidy war in Europe is a great obstacle that can slow down the integration process," warned Jorge Padilla, director of the consultancy Compass Lexecon and patron of FIDE. And the search for the so-called national champions, all-powerful giants in their sector, is not convenient. In the past, "this policy has failed" and attention has to be paid to the productivity of SMEs. "The new policy cannot be focused on granting incentives and subsidies. An industrial policy must be developed to create valuable jobs," he assessed.
