EU re-industrialisation target under review

European Union member states are currently discussing a potential adjustment to the bloc's target for strengthening its manufacturing base. This review signals a broader re-evaluation of the EU's industrial strategy, particularly in the wake of the Commission's proposed Net-Zero Industry Act and Industrial Accelerator Act.

The EU has been actively pursuing a rapid shift towards environmentally sustainable lifestyles and economies, with European industry playing a pivotal role in this green and digital transition. Initiatives like SCIENCE AND INNOVATION TO EMPOWER EU INDUSTRIAL RESILIENCE AND ECONOMIC SECURITY have contributed to research and innovation policies aimed at strengthening European industrial leadership and economic security.

The global rise of industrial policy is reshaping the state's role in the economy, posing a key challenge for industrial policy to involve industrial groups without allowing them to dominate the process, as explored by the Industrial Policy and Corporate Connections project. This context underscores the current discussions on recalibrating the EU's re-industrialisation goals.

Energy efficiency and decarbonisation are central to this strategic shift. The Strategic Energy Technology for Industry in Europe project supports efforts to advance technology targets across SET Plan countries, aiming to make EU industry less energy, resource, and emissions intensive. The imperative for industry to move "Beyond Fossil Thinking" and embrace electrification for future resilience is also a growing sentiment, as highlighted in recent discourse on Beyond Fossil Thinking: Electrifying Our Future Resilience.

What this means: The ongoing discussions reflect a strategic pivot, aiming to align the EU's industrial ambitions more closely with its green transition goals and global competitive landscape, ensuring resilience and sustainable growth.