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BackThe digital and green transition of the economy and Europe's strong position in the global economy require a revival of active industrial policy. To discuss challenges and strategies with experts and representatives from institutions and interest groups, AK EUROPA organised a roundtable in Brussels on 23 May 2024. In their opening statements, AK President Renate Anderl and Werner Raza, Head of the Austrian Foundation for Development Research, argued in favour of fair funding of the transition and social conditionalities.
The necessary decarbonisation of production and consumption in combination with digitalisation is the double transition challenge of the century. It is leading to clearly noticeable changes in working and living conditions. In view of the geopolitical turmoil of recent years, the structural dependencies on third countries to access critical raw materials and high-tech products and the debate on strategic autonomy, there has been a renaissance of EU industrial policy. However, the question of democratic co-determination and thus also the role of employee representation is often neglected, even though the processes of change have a strong impact on distribution.
Future-oriented industrial policy must focus on employees
In her opening speech, AK President Renate Anderl focussed on employees and the fair funding of change. "Digitalisation and climate change pose major challenges for all European countries”, she explained. The climate crisis is profoundly changing people's everyday lives, affecting first and foremost workers in industrial workplaces and demanding a reorganisation of the economy. "The good news is that it is possible to shape the green and digital transition. It is important that the transition brings benefits and improvements for all, employees as well as companies." It must be organised in such a way that the jobs of the future will be quality jobs. For social partners, however, it is also important to keep an eye on companies.
Training and further education are key levers for managing the reorganisation in the interest of all those involved. Renate Anderl: "Well-trained skilled workers are the key to innovation and therefore crucial to the success of companies." AK is already taking responsibility in this area, for instance with the ‘Öko-Booster‘, which was recently awarded the Austrian State Prize for Adult Education. AK's demand for the right to one week of further training per year during working hours would also be an important contribution. Participation in the labour market, especially for women, is also key. The social partners are therefore jointly calling for nationwide childcare. However, fair funding is also crucial. "There is no doubt that the transition will cost money. It is therefore high time that everyone makes a fair contribution - first and foremost the super-rich, who have a far greater share in causing the climate crisis, but also those corporations that evade their responsibility by tax dodging."
What kind of EU industrial policy? Deficits, challenges and progressive proposals
In his keynote speech, Werner Raza emphasised that industrial policy affects many policy areas and is a social challenge. A clear definition of goals (the ‘mission’), timeframes, responsibilities and instruments is needed. This also requires the commitment of trade unions, civil society, governments and companies. He cited the pandemic, security of supply, supply chain problems, strategic autonomy, competitiveness (especially in relation to the USA and China), energy prices, deindustrialisation and the green transition as deficits, challenges and concerns of the last five years. Instead of geopolitical rivalry, competition policy should focus on productivity and technological progress to enable win-win situations.
The stakeholders involved in and affected by the green transition, such as the social partners, should be more closely involved in the process. The EU's current Just Transition Framework is too narrowly conceived. What is needed is a new social contract and minimum social standards at European level, education and re-skilling, possibly job guarantees. Concerning industrial policy, the financially strong and large EU member states are currently surging ahead while others are at a disadvantage - a European strategy and funding investments are therefore required. The macro-financial framework must be adapted accordingly. Innovation policy also needs to be more risk-taking when it comes to funding. At the same time, all funding must be linked to social conditionalities.
Expert discussion on challenges, strategies and good work
The discussion took place at the premises of the Foundation for European Progressive Studies (FEPS) in Brussels. In addition to the hosts from AK and FEPS, experts from the Brussels offices of ÖGB, WKO, the Federation of Austrian Industries, DGB and IG Metall, the European Trade Union Institute (ETUI), the Directorate-General for Employment of the EU Commission and the Brussels Centre for Climate and Social Justice of the Friedrich-Ebert-Stiftung (FES) took part. The importance of competitiveness and fiscal leeway was emphasised, as the investment gap for the transformation of the economy amounts to 400 billion per annum. It was also pointed out that the transformation will have an impact on the structure of the labour market. The central finding of the FES study ‘It's all about jobs’ is that in future, new job opportunities will frequently be created in small companies that are less well organised by trade unions, while many jobs in well-organised companies could potentially be lost. The trade unions should not allow themselves to be played off against each other in the location debate. This is another reason why social conditionality is so important for quality jobs.
It was noted positively that, according to a Eurobarometer survey, there is broad public support for the need for transformation measures. The approaches of a just transition and sustainable competitiveness as well as a stronger mainstreaming of the relevant policies are crucial. In general, greater involvement of the social partners was called for. Issues such as technologies and strategies, co-determination and social dialogue as well as the financial framework, the efficiency of the resources used and conditionalities will be discussed further in the future.
Prospects for the years ahead
From AK’s point of view, the active and strategic reorientation of European economic and industrial policy is necessary in order to overcome the challenges of the transition. Only an industrial policy that takes all affected policy areas into account and includes the relevant stakeholders into an overall strategy can be successful. The macroeconomic framework conditions for employment and sustainable prosperity are particularly important, also in terms of the circular economy, fair distribution and consideration of social issues.
How industrial policy in Europe will develop over the next five years will also be largely determined by the upcoming elections to the EU Parliament. This is another reason why it is important to go to the polls.
Further information:
AK Europa: New European Industrial Policy – Focus: Green Deal Industrial Plan & Net-Zero Industry Act
AK EUROPA: Industrial Policy
AK EUROPA: The Critical Raw Materials Act
European Commission: European industrial strategy
European Commission: Fair green and digital transitions, research
Chamber of Labour: Stimme für Demokratie: Für ein gerechteres Europa - Voice for democracy: For a fairer Europe (German only)
Friedrich-Ebert-Stiftung: ‘It's all about jobs