Upcoming months crucial for EU’s Single Market and Industry

Source: Croatian presidency of the EU (Croatian presidency) i, published on Friday, May 15 2020.

The Croatian Presidency organized a videoconference of EU ministers responsible for internal market and industry to discuss measures that need to be taken at both national and European level in order to counteract the negative impact of the COVID-19 pandemic on the EU economy. These discussion should provide input to the Commission in finalising its long awaited Recovery Plan.

The videoconference was chaired by the Croatian Minister of the Economy, Entrepreneurship and Crafts, Mr. Darko Horvat. It was also attended by Executive Vice-President of the European Commission, Ms Margrethe Vestager, and by the Commissioner in charge of the Internal Market, Mr. Thierry Breton.

“The upcoming months will be crucial for restoring the EU’s Single Market and shaping the future of European industry. As the health crisis recedes, it is important to avoid an uncoordinated recovery, given the strong economic interdependence of the Member States of the EU.”

Minister Darko Horvat

Four key areas of activity in the Joint Roadmap for Recovery

Today’s discussion focused mainly on the Joint Roadmap for Recovery, presented in late April by the Presidents of the European Council and the European Commission. The roadmap suggests action towards a fully functioning and revitalised Single Market, an unprecedented investment, global action and a functioning system of EU governance. It also sets out important principles, such as solidarity, cohesion and convergence.

It was broadly acknowledged that the green transition and digital transformation will play a pivotal role in the efforts to revitalise and modernise the European economy. Investing in clean and digital technologies, in the context of a circular economy, should boost economic growth, improve the competitiveness of the EU industry and create jobs.

It was noted that, while the current crisis has shown that European industry remains adaptable and resilient, it has also revealed vulnerabilities due to heavy dependence on third-country suppliers. Efforts should therefore be undertaken to reduce such dependence, especially in sectors of strategic character such as medicinal products and telecommunication components.

Solidarity as a guiding principle to a more prompt exit from the crisis by all EU Member States

“In order to relaunch the economy, it is crucial to provide digital connectivity, fairness when it comes to level playing field between third countries and EU, and securing resilience of digital capacities in Europe.”

Executive Vice-President of the European Commission, Ms Margrethe Vestager

“We have to place focus on the Industrial ecosystems because it is in our best interest to have a strong and competitive Single market. The priority is to use this crisis to come out from it together, stronger and with one single idea on our minds: solidarity.”

Commissioner in charge of the Internal Market, Mr. Thierry Breton

Finally, it was highlighted that with adequate investment the industry can become the engine for the recovery of the EU economy. It was stressed that such investment should be directed towards the sectors most affected by the crisis and those presenting the greatest potential for innovation, growth and job creation.