EU industrial strategy: draft paper

In a draft paper on “Building blocks for a comprehensive industrial strategy”, the European Commission stresses the need to erase the distinction between Single Market and Digital Single Market, as all sectors are becoming digitised. Digitalisation, green transition and fairer international relations shall be the leitmotiv of this new industrial strategy.

Key technologies

The draft strategy mentions “strategic areas of crucial importance”, namely cybersecurity, artificial intelligence, robotics, critical digital and data cloud infrastructure, 5G, high performance computing, IoT, quantum computing, nanotechnologies and microelectronics. These technologies contribute to “EU’s technological sovereignty” and shall be developed in line with European values, underlines the European Commission.

The European Commission explains that it is necessary to invest in partnerships with Member States and the private sector, for research and innovation, infrastructure and uptake of technologies. The Commission considers launching a strategic European partnership on R&I in the field of Smart Networks and Services beyond 5G/towards 6G. Regarding the industrial Internet of Things, the Commission plans to set up an alliance between the Commission, Member States and industry.

Artificial intelligence and data

An appropriate framework for facilitating the sharing of non-personal data should be created.

The draft strategy highlights that all parts of the value chain for AI systems should be considered, from microchips to the uptake of AI-powered products. A European Public-Private Partnership on R&I in the field of AI, data and robotics should be established under Horizon Europe.

Strategic EU value chains (IPCEI)

The Commission will build on the work done on strategic value chains by the Strategic Forum on Important Projects of Common European Interests (IPCEI). This means that value chains might be added, removed or adjusted. The draft strategy mentions the possibility to explore a second IPCEI on microelectronics with a focus on microprocessors for edge computing.

Standards and certification

The EU needs to set standards at international level and to leverage the size of its Single Market to strengthen its position on the global stage. New standards should be developed, especially in strategic areas, including sustainability and digital technology. The document also mentions the importance of certification.

Cybersecurity

Cybersecurity “must be a key component of all digital value chains”, including in 5G, healthcare and connected mobility. The European Commission underlines that Europe must retain its capacity to assess the security of components, particularly those originating outside Europe. The document mentions a possible alliance to coordinate public and private investments.

The European Commission plans to use guidelines, certification schemes and standards to foster the development of cyber secure products. Current existing framework, such as the Machinery Directive, will be reviewed and new rules could be developed, for instance on vehicle cybersecurity under the new vehicle type approval legislation.

Green transition

Boosting the deployment of clean technologies will be a priority in the new strategy. More particularly, the European Commission would like to launch an alliance with Member States and industry in the field of clean hydrogen technologies and low-carbon industries.

It will also develop the European Battery Alliance and revise the Batteries Directive to include sustainable requirements for batteries. An “ambitious battery partnership” should be set up under Horizon Europe.

It is essential to secure access to raw materials and access to low-carbon energy at competitive prices, underlines the document. There will be a Communication on the 2020 list of Critical Raw Materials for the EU.

Trade

The Commission plans to address the distortions of competition by third countries and aims to find the “right balance between openness and protection”. Reciprocity of market access will be a priority. The EU considers using existing rules (such as trade defence instruments) or creating new ones.

Competition

Competition rules will be reviewed to allow European companies to stay competitive globally.

Next steps:

March 2020: The final version of the EU industrial strategy will be presented, together with the Action Plan for the implementation and enforcement of the Single Market.

For any questions on this issue, do not hesitate to contact Camille Dornier: camille.dornier@eurosmart.com

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