Ref. Ares(2022)1293839 - 21/02/2022
CAB BRETON / 1028
BusinessEurope Advisory and Support Group
event
_______
Speech by Commissioner Thierry Breton
9 November 2021, Brussels
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[Introduction: building on our recent achievements]
Mr
,
Mr
,
Ladies and gentlemen,
I am delighted to be given the opportunity to exchange
with you this evening. I believe this afternoon’s
programme has been rich and intense. It mirrors, I think,
the relentless dedication of BusinessEurope to voicing
the interests of our companies throughout the
continent.
And indeed, European companies must be heard, today
probably more than ever. For nearly two years now, we
have been navigating through volatile times. Companies,
and in particular SMEs, have been on the frontline,
having to deal with the consequences of such
unpredictability.
With this being said, the economic outlook has cleared
up over the last few months, and I think it is fair to say
that it has to do with our collective achievement
regarding vaccination.
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Starting from scratch, we managed, in record time, to
give Europe the industrial means not only to cater for its
own needs, but also to live up to its international
responsibilities. We are indeed the first provider of
vaccine doses in the world.
Europe also spearheaded global efforts on the digital
front: with the EU Digital COVID Certificate, the
Commission’s services introduced successfully the first
and so far only system operating at international level.
Nearly 600 million certificates issued so far across more
than 40 countries: with this global standard, Europe has
boosted people’s confidence and eagerness to travel
again. It has helped the tourism ecosystem get back on
track.
Obviously, the pandemic is still with us, but this
European success tells us one thing: when we,
Europeans, get our acts together, we set the pace and
we go the distance.
Now, to be honest, we had not anticipated that the
global economy would start getting back on its feet so
rapidly. This sudden rise in global demand has created
tensions that are partly fuelling the current energy crisis.
As you know, the Commission has set up a toolbox to
mitigate its effects and we are discussing with Member
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States on how to go about it in the longer run. But there
is already one lesson to learn from it: we must
anticipate our transition. We must build on our recent
achievements to become more confident about
Europe’s capacity to lay the ground for its strategic
autonomy, and consequently, for a more resilient Single
Market.
[Resilience = rebalancing global value chains]
Resilience has been a strong leitmotiv in the last
months, but what does it really means, what does it
entail when talking about industry and the economy?
Well, first, we have to think about the scale: the
pandemic has revealed to what extent all economies
were intertwined at global level.
Contrary to what some may think, the intention of the
Commission is not to flee this global integration but to
better harness it, by mitigating Europe’s dependencies,
by finding a new equilibrium, by instilling more
assertively its values and its rules.
Industrially speaking, this means re-balancing global
value chains, just like what we did with vaccine
production. We must replicate this on other fronts. I
have in mind, of course, semiconductors. Probably the
most striking example of the challenges awaiting us.
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To put it simply, semiconductors are our future: 5G and
6G, edge computing, the Internet of Things, artificial
intelligence, to name but a few. The market will double
by the end of the decade.
We must be ready. Not only for the current 20nm
semiconductors - for which we need to increase our
existing capacities – but also for the next generation of
semiconductors below 5nm and even 2nm. These will
power our green and digital transition and ensure our
resilience.
We must also be vigilant about the current geopolitical
developments. We know that the heart of the
geopolitics of chips is in Japan and South Korea. We are
all aware of the tensions between the US and China.
In this context, Europe cannot afford to wait and see.
We must be ambitious. We have the best research in
the world. Take IMEC, LETI or Fraunhofer. Europe has
the key to technological breakthrough, and with the
European Chips Act, recently announced, we will further
support such excellence.
And to turn this excellence into industrial leadership, we
must beef up our capacities, in particular by setting up
large manufacturing facilities. Let’s be clear about this:
the
fabless approach is outdated. I am not saying we
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must and we can re-shore everything. I am saying we
must
stop
systematically
relocating
all
our
manufacturing processes like we used to.
Not only should we regain manufacturing power, we
should also get our strongest international partners to
establish their own manufacturing capacities on
European soil; to invest in European know-how.
This will be good for our competitiveness and for our
jobs. Obviously, we will have to ensure that we have the
right skillset to match such transformation. Through the
Pact for skills, we launched several skills partnerships,
including on microelectronics. We want to ensure that
businesses, large and small, have all the talents needed
to innovate and grow.
So you see, re-balancing global value chains entails a
series of bold decisions, from domestic capacity building
to international partnerships, from technological know-
how to industrial deployment.
And what goes for semi-conductors goes for many other
sectors, such as raw materials - another essential driver
of our twin transition - where we will also need to strike
the right balance between domestic sourcing and
international partnerships.
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I also have in mind hydrogen. Here again, Europe has to
lessen the gap between its technological excellence and
industrial scale-up.
But I am confident: lately I have referring quite often to
the first fossil-free steel vehicle that I discovered in
Sweden a few weeks ago. I see this as the shining proof
that decarbonising at industrial scale is becoming
possible; that Europe is showing the way towards new
markets for low-carbon products.
I am also confident that Europe has enough leverage to
attract the big players and to rebalance the industrial
world map, notably because we have our Single Market,
the biggest integrated market in the world.
[Strengthening the Single Market]
Which brings me to my second point: strengthening the
Single Market.
It is indeed the ultimate engine of our long-term
recovery. It is the cornerstone of Europe’s economy.
When the pandemic started, companies, in particular
SMEs, were hit hard and were all taken off-guard. We
must ensure that it is functioning well, under any
circumstances.
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This is why, in 2022, we will come up with a proposal for
a Single Market Emergency Instrument. This instrument
will provide a swift and flexible response to the
impact of any given crisis on the Single Market, with
one sole objective: to safeguard free movement.
Emergency measures must be complemented by a
structural approach.
As you know, last May, along with the updated
Industrial Strategy, we published the first Annual Single
Market Report. It analyses, industrial ecosystem by
industrial ecosystem, the progress made in addressing
Single
Market
barriers
and
reports
on
the
implementation of the Single Market Enforcement
Action Plan.
The Commission knows too well that businesses
continue to face too many barriers to cross-border trade
and investment, especially in services. This is why we
will explore a legislative proposal to facilitate cross-
border trade in services for key business services
supported by harmonised standards.
It is also important that the Commission and Member
States continue to cooperate in addressing and
preventing barriers. It is vital that we assess and
anticipate the impact on the Single Market of any
planned national measure.
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Hence the importance of the Single Market Enforcement
Task Force, which was set up to discuss transparently
about how to remove barriers to the Single Market.
The Commission will continue to ensure Member States’
compliance with their existing obligations. We will also
strengthen market surveillance of products and
continue to mobilise investments to support SMEs.
In this endeavour, the Single Market Programme,
adopted before the summer, will be key. It pools crucial
activities financed under several previous programmes.
It provides a more coherent and agile framework that
will help our Single Market reach its full potential, in the
interest of businesses and consumers.
[Conclusion]
Ladies and gentlemen,
I have used the word “confidence” a couple of times and
will use it one last time to conclude. In these times of
hardship and uncertainty, we have set ourselves
ambitious goals and we have come up with ambitious
tools to achieve them.
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I could have mentioned all the collective work we have
been doing under the industrial alliances.
I could have mentioned also the Fit for 55 package,
which will provide Europe’s new growth strategy with
the right regulatory framework, or the Recovery plan,
which will give us enough firepower to uphold our green
and digital transition.
This goes to show that we have all it takes to succeed.
Rest assure that the Commission will do its utmost to
provide
businesses
with
the
most
conducive
environment to sustainability and competitiveness.
Thank you.
[1500 words]
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