Despite the European Commission’s focus on prosperity in its new economic planning, and how this is a huge opportunity for the manufacturing industry, Maria Cristina Russo began her keynote address at the European Manufacturing Conference in Brussels by reflecting on the challenging state of the manufacturing sector in Europe.
Acknowledging its significant contribution to the economy – nearly 30 million jobs and €2.2 trillion in value, accounting for 15% of the EU’s GDP – she highlighted the pressures facing the sector. exemplified by recent job cuts and industry changes, particularly in the automotive field. These challenges, she said, make it clear that Europe must reshape its industrial strategy to adapt to evolving and often challenging global dynamics.
Streamlining and simplifying
At the core of this strategy is the European Prosperity Plan, a new initiative outlined by President Ursula von der Leyen. Russo explained that this plan aims to streamline business operations, deepen the single market, and support companies in scaling up while ensuring a fair competitive environment.
A key inspiration for the plan is the recent Draghi Report on European Competitiveness, by former Italian prime minister Mario Draghi, which has shaped much of the Commission’s current economic thinking. The Draghi report emphasises the need for sustainable growth, simplifying regulations, and mobilising significant financial resources to drive competitiveness. Russo stressed that Europe needs to do more than just legislate – it needs to remove unnecessary regulatory hurdles and provide targeted support to sectors with high potential for innovation and impact.
Climate balance
Another major theme in Russo’s speech was the balance between Europe’s climate ambitions and its industrial competitiveness. The European Union remains committed to becoming a climate-neutral continent by 2050, but Russo acknowledged that the transition must consider the realities of industries and the economic pressures they face. The Commission’s strategy includes new initiatives such as the Clean Industrial Deal and the Circular Economy Act, which aim to support sustainable growth while safeguarding European jobs and industries.
A key element of this industrial transformation is research and innovation. Russo emphasised the pivotal role that innovation plays in the prosperity plan, noting that research must be at the heart of the Commission’s efforts. She provided several examples of successful initiatives funded by the European Union, including projects under the Made in Europe programme. Over the past two years, this programme has funded 76 projects with nearly €572 million, focusing on advanced manufacturing technologies that are expected to significantly enhance Europe’s industrial capacity. Russo highlighted the importance of artificial intelligence, sustainability, and human-cantred approaches in shaping the future of European industry.
Protecting Europe
Russo also discussed the necessity of maintaining strategic international cooperation while safeguarding Europe’s economic security. The manufacturing sector, she noted, must strike a balance between global collaboration and protection against external risks. In her view, Europe’s industrial strategy should promote partnerships where beneficial but remain vigilant in defending its interests where necessary.
She also touched on the development of advanced methodologies and the strategic importance of new materials for the future of European manufacturing. Russo announced the creation of an advanced materials strategy, designed to coordinate activities across the European Union and its member states to foster industrial innovation in key areas.
Russo concluded by emphasising the importance of collective action in overcoming the current challenges facing Europe’s manufacturing industry. She called for stronger collaboration between the EC, member states, industry, academia, and research institutions. This joint effort, she said, is vital for ensuring that Europe’s manufacturing sector not only survives but thrives in an increasingly competitive global environment.
With the backdrop of a complex geopolitical landscape, Russo’s speech underscored the Commission’s resolve to create a more resilient, innovative, and competitive industrial base in Europe. The European Manufacturing Conference, she concluded, serves as a vital platform for forging the partnerships and strategies necessary to move forward.