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EU local and regional authorities contribute to the

mid-term review of Europe 2020

Assessment of the flagship initiative

An industrial policy for the globalisation era

Almost three years after the launch of Europe 2020, the Committee of the Regions has launched a broad assessment of the Strategy in preparation for its mid-term review, expected in 2014.

As part of this assessment, the replies to this questionnaire on the state of play of the flagship initiative An industrial policy for the globalisation era will be discussed at a conference to be held on 10 April 2013 in Brussels.

This conference will be the third in a series of CoR events and monitoring initiatives on the Europe 2020 flagship initiatives, preparing the mid-term review in 2014. More news on this conference can be found on the CoR website[1]. By participating in this survey, you will:

·  ensure that your views are taken into account in the debate held during the conference;

·  contribute to the CoR's consultative activity over the coming months, to include an opinion drafted by Claude Gewerc, President of Picardy Regional Council (PES/FR), scheduled for adoption at the CoR plenary session on 10-11 April 2013;

·  contribute to the fourth CoR Monitoring Report on Europe 2020, to be published in October 2013;

·  contribute to the mid-term review of Europe 2020 in 2014.

If you wish to participate in this survey, please complete this questionnaire in any eu language, using the spaces provided, and return it in text format to:

by 1 March 2013

The questionnaire will be available in all languages in mid January

For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to:

http://portal.cor.europa.eu/europe2020/

CDR1856-2013_00_00_TRA_TCD .../...

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Contributor information[2]

Name of sender: / BASQUE GOVERNMENT
Department of Industry
Contact details:
(address, telephone, email) / C/Donostia-San Sebastian, 1
01010 VITORIA-GASTEIZ
Tel: 00-34-945-01.99.68
E-mail:
On behalf of:
(name of local or regional authority) / EUSKADI – BASQUE GOVERNMENT
Department of Industry
Type of organisation / City/Town/Municipality Region
County/Province
Association of local and/or regional authorities
Other (please specify)
Country: / SPAIN
Member of the EUROPE 2020 Monitoring Platform: / Yes No

Current policy challenges and responses at regional and local level

1) What are the main challenges faced by industry in your region/city?
Please answer with respect to competitiveness (market trends; positioning in the market; competitors) and employment (finding the necessary workforce with the right skills; ability to create new jobs).
The main challenges in the field of industrial and business competitiveness in the Basque Country, on which its current industrial policy is being based, are:
§  to promote innovation in strategic sectors;
§  to promote the concept of 'Smart Manufacturing', advanced, efficient and sustainable manufacture, incorporating new technologies and materials, but also innovation in the design and marketing of its products, services and solutions, new business models and management systems;
§  to support 'driver' enterprises and keep companies and their headquarters in the region;
§  to foster greater inter-regional and local balance in social, economic and industrial development;
§  to relaunch the policy of clusters, strengthening their technological development, inter-cluster cooperation and internationalisation;
§  to facilitate business alliances and integrations to enable SMEs to reach the optimum size to guarantee their innovation and internationalisation processes;
§  to facilitate access to funding for SMEs through operating capital, shareholders' credit, guarantees and other instruments;
§  to further promote public-private cooperation initiatives;
§  to foster diversification in emerging economic sectors;
§  to increase the internationalisation and mobility of human resources.
2) Do these challenges differ from those faced in 2010 (when the Europe 2020 strategy was launched)? If so, in what respect?
Please make a distinction between structural problems and problems resulting from the impact of the economic and financial crisis.
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3) How are your regional/local policies addressing these challenges?
Please make clear whether you are (i) working on the basis of a local/regional industrial strategy; (ii) providing direct support to firms and networks/clusters; (iii) encouraging stronger relationships between firms, universities, public and private research institutions; (iv) improving the business environment, including through administrative simplification; (v) undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions.
Please provide examples (or at least web references[3]).
Since 1980, the Basque Country has been a pioneer region in terms of establishing an integrated regional industrial policy, which is a match for the challenges and opportunities of its technological and industrial capacities.
It was also a pioneer in the implementation of a policy and strategy of clustering of the economy in the early 1990s. In 1985, the Basque Government set up in the Basque Country the Spanish State's first Technology Park (Bilbao). The first Basque clusters were created in 1992.
An account of the evolution of Basque industrial policy since the 1980s can be found on the website “Basque Industrial Policy” www.politicaindustrialvasca.net.
Taking this proactive approach, strategies and actions have been implemented in sectors with high growth potential, such as the green economy, energy, 'smart cities' and 'S3's - Smart Specialisation Strategies, basing this diversification process on the application of converging technologies (bio, nano-micro, ICTs, etc).
BOX 1 – An Industrial Policy for the Globalisation Era
The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era, adopted by the European Commission on 28 October 2010, sets out a strategy that aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs while becoming more resource-efficient[4]. The flagship initiative highlights ten key actions for European industrial competitiveness:
1.  "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals;
2.  "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe;
3.  making it easier for SMEs to access credit and facilitating their internationalisation;
4.  a strategy to strengthen European standardisation;
5.  more efficient European transport, energy and communication infrastructure and services to serve European industry;
6.  a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials;
7.  addressing sector-specific innovation performance with specific actions, in such areas as advanced manufacturing technologies, construction, bio-fuels and road and rail transport, particularly with a view to improving resource efficiency;
8.  actions to improve framework conditions and support innovation in energy-intensive industries;
9.  a space industrial policy creating a solid industrial base and covering the whole supply chain;
10.  reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.
These actions are implemented through more than 70 measures, whose state of play can be found on DG Enterprise and Industry's website[5].
You can find more information on An industrial policy for the globalisation era, seen from the point of view of local and regional authorities, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy. Handbook for Local and Regional Authorities[6]. General information on Europe 2020 can be found on the strategy's official website[7].

How is the Europe 2020 flagship initiative An industrial Policy for the Globalisation Era relevant to your city or region?

4) With respect to industrial policy, how would you evaluate the support your city/region has received from EU policies so far? Was it sufficient in view of the challenges you are facing in this area? As concerns EU-financed investments, in which area has more added value been created (e.g. infrastructure, skills, innovation, etc.)?
Please answer with reference to the various existing strands of EU policy (Europe 2020 flagship initiative "An industrial policy in the globalisation era", Structural Funds, 7th Framework Programme, Competitiveness and Innovation Programme, etc.).
Please comment both on the policy tools used and on funding.
We believe that the strategy has helped to enhance internal debate and provided a source of inspiration for drawing up policies, establishing actions and identifying more ambitious objectives.
We would also insist on the need for the process of governance to involve, engage and mobilise regional and local authorities, both in the drawing up and in the implementation of the strategy.
5) The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era[8] (see Box 1 above), as reviewed by the Commission Communication A stronger European industry for growth and economic recovery[9] of 10 October 2012, sets out a "renewed industrial policy" based on the four pillars presented in Box 2 below.
Which of these pillars are more relevant to your specific local/regional situation?
In accordance with the Basque Competitiveness Model backed by the Basque Government, the significant areas for action are:
§  enhancing funding;
§  reorganisation of the Basque technology and innovation system;
§  diversification towards new sectors;
§  promoting complete activity chains;
§  making the Basque Country an attractive region for business projects.
BOX 2 - An industrial policy for the globalisation era: 2012 update
The flagship initiative on industrial policy, as reviewed by the Communication of 10 October 2012, places more emphasis on short-term, growth-enhancing measures resulting from the economic crisis and its impact on EU industry. The flagship initiative is based on an extensive consultation of stakeholders carried out in the first half of 2012, which highlighted the impact of the crisis in terms of job losses, the decline of industrial production and very low business confidence. Those short-term problems go hand in hand with EU industry's structural competitiveness problems. The European Commission's response is based on these four "pillars of the reinforced industrial policy", to be addressed through partnership involving the EU, its Member States and industry:
ñ  Investments in innovation, with a focus on six priority areas with great potential (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; smart grids).
ñ  Better market conditions, both in the internal market, with special reference to goods, entrepreneurship and the protection of intellectual property rights, and in international markets.
ñ  Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.
ñ  Human capital and skills, to promote job creation and better anticipation of, and investments in, the skills needed to promote industry's competitiveness[10].

Are your country's policies relevant to your city or region?

6) To help meet these objectives, your country has set its own targets, which you can find at http://ec.europa.eu/europe2020/pdf/targets_en.pdf. Are your country's targets appropriate to your local (regional) situation?
Please explain, bearing in mind that "An industrial policy for the globalisation era" can potentially contribute to at least the following Europe 2020 targets:
in a quite direct manner: 75% of the 20-64 year-olds to be employed; 3% of the EU's GDP to be invested in research and innovation (public and private investment);
- in an indirect manner: 20% less greenhouse gas emissions than in 1990; 20% of energy from renewables; 20% increase in energy efficiency.
In general, we feel the objectives set by Spain to be appropriate.
7) Do you think that the industrial competitiveness policies set in your country's current (2012) National Reform Programme[11] meet the needs of your city or region?
If not, how would you change your National Reform Programme next year?
Generally speaking, the National Reform Programme largely reflects our region's needs.
8) Which measures in the field of industrial competitiveness policy could be more helpful in the short term?
1.  Stabilisation of financial markets and the development of global financial governance in agreement with other economic and financial powers.
2.  The application and follow-up of fiscal recovery plans promoted by regional authorities.
3.  Special support for venture capital and mutual guarantee schemes to facilitate access to adequate funding for companies, particularly SMEs.

Managing and funding issues

9) Is industrial competitiveness policy in your region/city adequately funded? Apart from EU funding (which you described in your reply to question 4) to what extent did you have recourse to other sources (e.g., PPPs, financial engineering)? Do you think you will have enough funds to run your policy programmes in this field in the future?
Our funding comes from the general budgets of the Autonomous Community of the Basque Country, which include European aid.
Furthermore, in order to fund Europe 2020, adequate budgets are needed to implement the EU policies necessary in order to achieve the objectives of the Europe 2020 strategy. The EU must therefore have at least the economic resources proposed by the Commission in its Communication on the Financial Perspective 2014-2020. We would also stress that the EU must make progress on setting up a system of revenue with more own resources, such as the recently approved financial transaction tax. This would lead to an increase in European industrial competitiveness.
10) What kind of cooperation/coordination takes place between your region/city and the national and EU levels in the fields of industrial competitiveness policy?
Do you see any room for even stronger cooperationbetween different tiers of government in this field? If so, please explain.
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11) Are theforthcoming Partnership Agreements/Contracts (under the new 2014-2020 cohesion policy) an opportunity for better coordinationbetween different tiers of government in the field of industrial policy? If so, why? And what could be the role of the different stakeholders (other levels of government and other stakeholders)?
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12) Please add any further comments you might wish to make on the matters dealt with in this questionnaire.
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SHARE YOUR GOOD PRACTICE
With a view to the CoR conference to be held on 10 April 2013 and the exhibition of good practices in the fields covered by An industrial policy for the globalisation era, you might wish to submit an example of good practice. To do so, please complete the form available on our website:
http://portal.cor.europa.eu/europe2020/MonitoringFlagships/Pages/Welcome.aspx
/ JOIN THE EUROPE 2020 MONITORING PLATFORM
To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your country, join us. For details on how, see: http://portal.cor.europa.eu/europe2020/Knowledge/Pages/BecomeaMember.aspx

THANK YOU FOR YOUR COOPERATION!