Informal Meeting – Industry And Internal Market: Working On A More Resilient European Industry & Internal Market

This event focused on a common mission: to chart a future-proof course for European industry and the internal market. Innovation, resilience and competitiveness were the threads running through the informal Council’s company visits and discussions.

The informal Industry & Internal Market meeting was held on 8 and 9 February, under the Belgian presidency of the Council of the European Union. This informal meeting was held in Genk and focused on the future of European industry and the internal market. Genk’s old mining sites served as the setting for company visits, a meal and inspiring policy debates.

At Thor park, European competitiveness ministers gathered to reflect on strengthening a resilient, sustainable and competitive European industry and internal market. Various initiatives have been taken in this regard in recent years. These include the Net-Zero Industry Act, the Critical Raw Materials Act, the European Chips Act and the Single Market Emergency Instrument.

Nevertheless, we still face many challenges: unfair competition, demanding climate goals and an ever-changing geopolitical landscape. Consequently, all ministers present indicated that there is plenty more work to do. For example, it became clear that the time is ripe to create a broader framework for European industrial policy. In this context, according to several ministers, the individuality of the member states must be taken into account.

Open strategic autonomy: crucial for a strong European industry

Achieving the green and digital transition remains a top priority. But we should not be blind to the impact this upheaval is having on our industries. Several ministers therefore hammered home the need to pay attention to the bureaucratic burdens that often accompany these changes. Thus, reducing reporting requirements, especially for SMEs, should be a continuing focus of future industrial policy.

The importance of balancing an open European economy with strategic autonomy was also emphasised during the debates. Geopolitical and economic shifts have made member states realise that there is work to be done in several areas. In the future, for example, further efforts should be made to diversify materials and supplies, with sufficient attention to both production and extraction within the European Union.

In the context of open strategic autonomy, the link was also made to the future of agriculture and the farmers’ protest in Genk on 9 February succeeded in attracting the attention of visiting ministers. It was concluded that we must also secure strategic autonomy for food.

Innovation, the key to success

The importance of innovation for and by industry, was clear during the company visits and policy debates. Consequently, there was consensus that future investment in innovation will have to be made in a sustainable and lasting way. However, the problem of not enough innovation flowing through to the market was also endorsed by the member states present. Valorisation will therefore remain an important focus area in the future.

A level playing field is of vital importance

This informal meeting also focused on the importance of a strong, unified internal market. There was an opportunity for ministers to exchange views during a lunch debate with Enrico Letta, the high-level rapporteur tasked by the Council with preparing a report on the future of the internal market.

Several member states denounced the danger of a subsidy race between states and stressed the importance of greater coordination at the European level. Impact analyses of state aid on competitiveness and attracting foreign investment were also put on the agenda. According to many member states, a long-term strategy based on uniform and objective criteria is the next step towards ensuring a level playing field.

Insights for a future European policy framework

The Belgian presidency is taking all these insights into account when drafting Council conclusions. These Council conclusions will be presented at the Council of 24 May and presented to the next European Commission as recommendations for future European industrial policy.

By using this approach, Belgium aims to make the discussions of this informal meeting resonate not only in Genk, but also in Brussels. Belgium will thus seek to make a significant contribution to a better future for European industry.