Annexes to COM(2021)350 - Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery

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dossier COM(2021)350 - Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery.
document COM(2021)350 EN
date May  5, 2021
Agreements with other partners and trade blocs. On the former, the proposed EU-US Trade and Technology Council could provide a platform for cooperation.

The Commission will also examine further reverse dependencies and map areas where other countries depend on the EU. Deeper understanding of such interdependencies can better inform the EU’s policy response.

The Commission will continue to support industrial alliances, in strategic areas where such alliances are identified as the best tool to accelerate activities that would not develop otherwise, and where they help to attract private investors to discuss new business partnerships and models in a manner that is open, transparent and fully compliant with competition rules, and where they have a potential for innovation and high-value job creation. The Commission will pay particular attention to the inclusiveness of alliances, for start-ups and SMEs. Such alliances should complement public-private partnerships 40 and provide a broad and open platform to establish strategic roadmaps and efficient coordination of research, development and innovation investment plans for technologies in particular ecosystems. In three of the six areas in which the Commission presents in-depth reviews with this Communication, the Commission has already launched industrial alliances: on raw materials, batteries and hydrogen.

Building on this positive experience, the Commission is preparing the launch of the two alliances that had already been announced in the New Industrial Strategy and in the Digital Decade Communication in the digital field: the Alliance on processors and semiconductor technologies and the Alliance for Industrial Data, Edge and Cloud. Bringing together a wide range of stakeholders, these alliances will help achieve key EU policy objectives in microelectronics and strengthen Europe’s industrial position in the global cloud and edge computing market, notably addressing the trend towards increasing distribution and decentralisation of data processing capacities and the need to enable federated and vendor-agnostic cloud ecosystem.

The Commission is also considering the preparation of: i/ an Alliance on Space Launchers to bring together all players, big and small, to work towards a globally competitive, cost-effective and autonomous EU access to space; and ii/ an Alliance on Zero Emission Aviation to ensure market readiness for disruptive aircraft configurations (e.g. hydrogen, electric), leveraging the existing investments under the Clean Sky initiative and contributing to Europe’s 2050 climate neutrality objective, working in full complementarity with the Renewable and Low-Carbon Fuels Alliance 41 currently under consideration.

The Commission will continue to support Member States’ efforts to pool public resources via Important Projects of Common European Interest (IPCEIs) in areas where the market alone cannot deliver breakthrough innovation, as has been the case in the areas of batteries 42 and microelectronics. 43 Member States and companies have jointly expressed interest to engage in additional IPCEIs, such as next-generation cloud, hydrogen, low-carbon industry, pharmaceuticals and a second IPCEI on cutting-edge semi-conductors. The Commission will examine these project plans attentively and, where the criteria are met, will accompany them as they reach maturity. In appropriate cases, such as in the case of batteries, industrial alliances can help to prepare such IPCEIs.

The EU budget can also support investments in areas of strategic importance. For instance, the national recovery and resilience plans can include contributions to the Member State compartments under the InvestEU Programme and Member States could use parts of their national allocations to invest in such sectors.

Strategic dependencies can have a particular impact on SMEs, ranging from higher switching costs to a lack of vibrant start-up communities and innovative smaller providers. In 2021, with a combined budget of EUR 61 million under the Single Market Programme the European Cluster Collaboration Platform and Enterprise Europe Network will take reinforced actions to assist SMEs to address disruptions and vulnerabilities or diversify by connecting them to new local and cross-border partners, thereby increasing SME resilience. Digital solutions, such as industrial manufacturing data spaces, would also lead to more flexible supply chains. 

Global leadership in technologies goes hand-in-hand with leadership in standard-setting and ensuring interoperability. Global convergence on the same international standards helps reduce adaptation costs and strengthens EU and global value chains. For the EU to retain its influence in setting global standards, its own standardisation system, a core of the Single Market, has to function in an agile and efficient way. Be it on hydrogen, batteries, offshore wind, safe chemicals, cybersecurity or space data, our industry needs European and international standards that underpin its twin transition in a timely manner. Establishing global leadership in these key priority standards is also a critical matter for the competitiveness and resilience of EU industries.

The Commission will present a strategy on standardisation. This will support a more assertive stance on European interests in standardisation (in the EU and globally)and in working openly with others on certain areas of mutual interests (e.g. US and Canada on lawful and ethical use of AI). In this context, the Commission will assess whether amendments to the Standardisation Regulation are required to achieve these objectives. A Joint Task Force between the Commission and European Standardisation Organisation (ESOs) will define agreed solutions to adopt in a fast manner those standards identified as crucial. The Commission will also pay particular attention to anticipating standardisation needs that support the twin transition of industrial ecosystems.

European companies need to benefit from a level playing field globally and in the Single Market. EU competition and trade policies have to remain assertive against unfair and coercive practices, while favouring international cooperation to solve global common problems. In conjunction with the present Communication, the Commission is proposing a legal instrument to address the potentially distortive effects of foreign subsidies in the Single Market. It will make sure that potentially distortive subsidies granted by foreign governments to undertakings wishing to acquire an EU company or bid in public procurement do no longer go unchecked. The Commission will continue to address with our trading partners distortive industrial subsidies.

Public spending through procurement amounts to 14% of EU GDP each year. The European public procurement framework can help strengthen companies’ competitiveness, including through the use of strategic criteria notably for green, social and innovation procurement, while ensuring transparency and competition. It is also important to increase innovation procurement of digital solutions and in R&D procurement. 44 In addition, the Commission will develop guidance on how to use public procurement effectively to strengthen the resilience of key ecosystems, using a toolbox to help public buyers identify and address strategic supply risks and dependencies and diversify the supplier base.

KEY ACTIONSTIMING
Adopt proposal to address the potentially distortive effects of foreign subsidies in the Single MarketMay 2021
Periodic review of strategic dependencies and monitoring of risks associated with strategic dependenciesStarting in 2021
Explore international partnerships and cooperation to address strategic dependenciesStarting in 2021
Launch of alliances on processors and semiconductor technologies, on industrial data, edge and cloudQ2 2021
Reinforced action on SME supply chain disruptions and vulnerabilitiesQ4 2021
Adopt a standardisation strategyQ3 2021
Guidance on identifying and addressing strategic dependencies through public procurementQ1 2022

5.Accelerating the twin transitions

The 2020 Industrial Strategy included a list of actions to support the green and digital transitions of EU industry, many of which are already implemented, 45 but the pandemic has drastically affected the speed and scale of this transformation. It is now clearer than ever that companies pursuing sustainability and digitalisation are more likely to succeed than others. This is why the digital transformation of businesses is one of the four cardinal points of the Digital Compass. 46

Co-creating transition pathways across relevant industrial ecosystems

The Annual Single Market Report 2021 47 presents a first analysis of the challenges faced by 14 industrial ecosystems as they have been identified so far, but also of the transformative initiatives already undertaken to achieve the twin transition and increase resilience. As an illustrative example, the Staff Working Document 48  on clean and competitive European steel looks in detail at what the green and digital transition means for this particular sector and explains how EU policy measures support the industry in leading the transition. 

These analyses can serve to co-create, in partnership with industry, public authorities, social partners and other stakeholders, transition pathways for ecosystems, where needed. Such pathways will offer a better bottom-up understanding of the scale, cost, long term benefits and conditions of the required action to accompany the twin transition for the most relevant ecosystems, leading to an actionable plan in favour of sustainable competitiveness. Such plan should take into account relevant inputs such as industrial technology roadmaps announced in the Communication on the European Research Area 49 and those developed under the Action Plan on Synergies between civil, defence and space industries. 50  

Priority should be given to the ecosystems and sectors that face the most important challenges meeting climate and sustainability goals and embracing the digital transformation, and whose competitiveness depends on this, such as energy-intensive industries (including the chemical and steel sectors), 51 and construction, as well as to sectors heavily affected by the crisis, which benefit from accelerating their twin transition in order to boost their recovery (such as tourism and mobility 52 ).

Supporting the business case for the green and digital transitions

EU industry has embraced the challenges and opportunities that the twin transition brings. It is ready to invest, but asks for predictability and a real business case, with a coherent and stable regulatory framework access to capacities and infrastructure, finance for innovation and deployment, raw materials and decarbonised energy, demand-side measures for climate neutral and circular products and the right skills. These are necessary for a competitive transition.

The EU’s immediate opportunity to support such business cases lies in its recovery efforts. The EU Budget and NextGenerationEU, and notably the Recovery and Resilience Facility, should be used as a springboard to speed up the recovery in Europe and reinforce the commitment to the green and digital transition. Based on their relevance across Member States, the very large investments required, and their potential to create jobs and growth and reap the benefits from the green and digital transitions, the Commission has strongly encouraged Member States to include in the national Recovery and Resilience Plans investment and reforms in a limited number of flagship areas 53 . The Commission is now carefully assessing the national plans and will monitor their implementation to ensure in particular that at least 37% of funding is dedicated to green investments and at least 20% is dedicated to digitalisation. Many national recovery and resilience plans will channel funding to green and digital SME investments. The 2021-2027 Cohesion policy funds will have a strong focus on the twin transition, contributing to the green and digital transformation of the EU’s economy.

The Recovery and Resilience Plans offer an unprecedented opportunity to join forces in multi-country projects to build digital and green critical capacities. A number of Member States have signalled their intention to include in their draft national plans multi-country projects. These projects could accelerate much-needed investment in the field of hydrogen, 5G corridors, common data infrastructure and services, sustainable transport, blockchain or European Digital Innovation Hubs. The Commission is assessing options for an effective mechanism to accelerate the implementation of such multi-country projects, enabling notably possible combination of Member States and EU financing 54 .

The enforcement of competition rules, in particular State aid rules, will ensure that public funds for the recovery do not replace but trigger additional private investments. The Commission is also conducting an extensive review of the EU competition rules to make sure that they are fit to support the green and digital transition to the benefit of Europeans, at a time when the global competitive landscape is also fundamentally changing. The revision of the environmental and energy State aid rules will better enable Member States to support business to de-carbonise their production processes and adopt greener technologies.in the context of the Green Deal and the New Industrial Strategy. State aid rules on IPCEIs help catalyse cross-border investment in ground-breaking innovations, where the market alone would not take the risk, and only where the positive effects of addressing a clear market failure outweighs the risk of market distortion in the Single Market. Whilst the recent evaluation of the current IPCEI Communication showed that the provisions work well, some targeted adjustments would be necessary, including to further enhance their openness and facilitate participation of SMEs and to provide guidance on the criteria to pool funds from national budgets and EU programmes. The new Regional State aid Guidelines will enable Member States to support the least favoured regions in catching up and reducing disparities, as well as regions facing transition or structural challenges, while ensuring a level playing field between Member States.

In its evaluation of the State aid Broadband Guidelines, the Commission is assessing whether those rules are fit-for-purpose and in line with recent technological and market developments, so that they can fully support the EU’s ambitions in respect of the deployment of broadband infrastructure in line with the policy objectives as set out inter alia in the Gigabit Society and the Digital Decade communications. Further, the on-going review of the antitrust rules applicable to horizontal agreements between companies will cover, amongst others, issues that are key to the green and digital transition, such as research and development agreements, and provide guidance on so-called “sustainability agreements” and procompetitive data-sharing and data-pooling agreements. Similarly, the ongoing review of the Vertical Block Exemption Regulation and the Vertical Guidelines aims at bringing the applicable rules closer to new market realities with growing e-commerce and online sales in particular and provide up to date guidance to businesses on these matters. The Notice on market definition is also under review, taking into account developments such as digitalisation and globalisation. With the Trade Policy Review, the Commission has set out a plan for trade policy to play its full role in the twin transition. As part of its focus on implementation of trade and investment agreements, the EU will use all in-built flexibilities in its existing trade agreements so that they are fit for purpose and respond to the new challenges relating to the green and digital transition.

To support the financing of a green recovery, the Commission is preparing its Renewed Sustainable Finance Strategy and a legislative initiative on sustainable corporate governance providing for due diligence by companies. In addition, the support to green investments will be paired with the development of new standards for green finance.

Before the summer break 2021, the Commission will come forward with the ‘fit-for-55’ package, presenting a coherent revision of the key instruments of the 2030 climate and energy package, in view of achieving a climate-neutral Europe by 2050. The Commission will present a Carbon Border Adjustment Mechanism for selected sectors, to better address the risk of carbon leakage, in full compliance with WTO rules. Existing tools to address the risks of carbon leakage of globally exposed energy-intensive industries should continue to be used until fully effective alternative arrangements are in place. Given the diversity of approaches to carbon pricing worldwide, the Commission will continue to reach out to the EU’s international partners to find grounds for cooperation in this area.

The Horizon Europe Programme, with all its tools - partnerships 55 , the European Innovation Council and the Institute of Innovation and Technology - will support next generation pan-European innovation ecosystem for green and digital transition. The Innovation Fund will continue providing critical support for the commercial demonstration of innovative low-carbon technologies in multiple sectors. As part of the proposal for a revised ETS Directive, the Commission is considering proposing a European approach to carbon contracts for difference, using ETS revenues and complementing other forms of support under the Innovation Fund.

Current investments into renewable energy sources, energy storage, grids, interconnections and industrial transformation in the EU are too slow. 56 For the green transition to bring genuinely sustainable competitiveness, industry needs access to abundant, affordable and decarbonised electricity, and additional efforts are required in this regard. The Commission will work with Member States to increase their ambition on renewable energies and streamline permit procedures. The Energy and Industry Geography Lab, a tool under development by the Commission’s Joint Research Centre in collaboration with industrial stakeholders, will provide geospatial information for companies and energy infrastructure planners. Industrial consumers, SMEs and communities can also work together for long-term price security to renewable power projects and improved environmental footprint. The Commission will consider measures, as part of the revised Renewable Energy Directive in June 2021, to support the uptake of corporate renewable Power Purchase Agreements, and remove any unjustified barriers.

The market expansion and global growth in demand for wind turbines, solar PV panels, and smart energy technologies is a key opportunity, as greater scale should bring lower energy costs for industry as well as society at large. The Commission welcomes efforts to scale up manufacturing of these technologies in the EU, such as the industry-led European Solar Initiative. The Commission is also working on ecodesign measures for solar panels, including possible requirements on carbon footprint.

The European Raw Materials Alliance (ERMA) is establishing a project pipeline for both the rare earths and magnets value chains and on energy storage and conversion materials. If all the projects identified by the ERMA were to be implemented, these could allow as much as 60% of the EU annually installed wind energy capacity to rely on rare earths magnets made in the EU by 2030 and for EU supply to cover 20% of projected nickel demand by 2030. 57    

Continued efforts towards sustainable product design, a circular economy and increased collection and recycling of raw materials, as well as a functioning market for secondary raw materials, will be key. The Commission’s proposal for a Batteries Regulation provides an innovative regulatory framework for batteries covering their entire lifecycle.

SMEs can profit from the green transition but need advice and financial support to make the most out of it. The Enterprise Europe Network is already putting in place Sustainability Advisors to provide dedicated advice to SMEs and these will be fully in place as of 2022. They will promote both SME innovation in decarbonised electricity generation, including the use of solar panels and on energy efficiency. Digitalisation is also essential for SMEs so all relevant platforms 58 will act together to support SMEs in their ecosystems in e.g. adopting data-driven business models, and solutions against cyber threats. By 2023, the Digital Europe Programme will inject EUR 310 million into the European Digital Innovation Hubs that will offer SMEs local support in digital transformation and access to technology testing. In 2021, the European Innovation Council will also channel EUR 1.1 billion in grants and equity funding, mostly to start-ups and innovative SMEs.

The Commission will work to reinforce the synergies between the sustainable and digital transitions. Digital solutions, such as digital twins in advanced manufacturing, can help optimise processes in all ecosystems. The industry-led European Green Digital Coalition will measure the impact and speed up the deployment of digital solutions to green key sectors. To deliver on the commitments made in the Digital Compass, 59 the Commission is going to identify additional measures to reach the carbon neutrality target of ICT technologies and to increase the uptake of digital technologies to lower the environmental footprint of other ecosystems.

The green and digital transitions cannot be realised without more and fair data sharing, in particular to optimise sustainability, and to develop innovative products and services. To help unleash the potential of data by companies and the public sector, the Commission will propose a Data Act in 2021 and will continue to support the establishment of sectoral ‘Common European data spaces’, in full compliance with fundamental rights, via the upcoming Digital Europe Programme. At international level, the EU is engaging in the WTO Joint Statement initiative negotiations on e-commerce to shape the global rules on digital trade. To promote the development of safe and trustworthy Artificial Intelligence, the Commission presented a proposal for a regulatory framework on AI and a revised coordinated plan on AI on 21 April 2021.

Investment in skills is an important component of investing in people, and will be essential to support the twin transition and to contribute to a fair recovery. The European Skills Agenda supports the green and digital transitions with initiatives like the Pact for Skills. It helps mobilise the private sector and other stakeholders to upskill and reskill Europe’s workforce. The Pact supports large-scale skills partnerships per ecosystem, some of which already put forward skilling commitments (automotive, microelectronics, and aerospace and defence industries). The Skills Roundtables, organised by the Commission with relevant stakeholders from each ecosystem, will have covered all ecosystems by mid-2021, and will contribute to the design and implementation of the pathways. The EU budget for 2021-2027 includes a number of instruments that can support upskilling and reskilling. 60 The national recovery and resilience plans can also contribute, as well as effective active support to employment. 61  

KEY ACTIONSTIMING
Co-creation of green and digital transition pathways for relevant ecosystems, starting with tourism and energy intensive industriesAs of Q2 2021
Actions to promote renewable Power Purchase Agreements in the proposal for a revised Renewable Energy DirectiveQ2 2021
Consider European approach for carbon contracts for difference in the proposal for a revised ETS DirectiveQ2 2021
Energy and Industry Geography LabAs of Q4 2021


6.Conclusion: coming back stronger in partnership

The new Industrial Strategy 2020 strategy laid the foundations for an industrial policy that would support the twin transitions, make EU industry more competitive globally and enhance Europe’s strategic autonomy. It set out a new industrial way for Europe, fit for the ambitions of today and the realities of tomorrow. It is still work in progress, building on Europe’s assets as the home of industry – our diversity and the talent of our people, our innovators and creators, our values and social market traditions. This new industrial strategy is entrepreneurial in spirit and action, and as valid as ever.

The EU, its Member States and industry are now drawing the lessons from the crisis and are ready to put Europe’s industry on a new sustainably competitive footing. This means implementing and building on the measures announced on industry, SMEs and the Single Market in the March 2020 Industrial package. It also means securing Europe’s central asset, its Single Market, ensuring open strategic autonomy and accelerating the green and digital transitions across the EU territory. Legislation, co-creation, investment, partnerships and international cooperation all have a role to play. This update to the Industrial Policy Package will help achieve those goals.

To be effective, these efforts must be supported by strong partnerships between the EU, Member States, social partners, industrial and other relevant stakeholders, between and within industrial ecosystems, building on the EU’s open and inclusive Industrial Forum. For the most relevant ecosystems and together with other relevant stakeholders, the Forum will support the development of transition pathways and the analysis of strategic dependencies. It will promote best practices and solutions across ecosystems and identify cross-border and cross-ecosystem investment needs and cooperation opportunities.

The Commission will continue promoting political ownership of the industrial strategy, continuing regular dialogues with the European Parliament and the Council.

The EU will seek international cooperation wherever possible to build a strong global economy, based on EU principles including a level playing field, leadership on standard setting and other regulatory priorities, and strengthening the resilience of global supply chains.

(1)

COM(2020) 102 final, https://ec.europa.eu/info/sites/info/files/communication-eu-industrial-strategy-march-2020_en.pdf . ‘The 2020 Industrial Policy package’ includes also a dedicated Strategy for small and medium-sized enterprises (SMEs; COM(2020) 103 final) and Specific actions to address barriers to a well-functioning the Single Market and improve enforcement of commonly agreed rules, COM(2020) 93 final and COM(2020) 94 final.

(2)

SWD(2021) 351, Annual Single Market Report 2021 identifies the following 14 industrial ecosystems: 1. Aerospace & Defence, 2. Agri-food, 3. Construction, 4. Cultural and Creative Industries, 5. Digital, 6. Electronics, 7. Energy Intensive Industries, 8. Energy-Renewables, 9. Health, 10. Mobility-Transport-Automotive, 11. Proximity, Social Economy and Civil Security, 12. Retail, 13. Textiles, 14. Tourism. Further ecosystems may be identified and their delineation adapted based on stakeholders dialogues and changing realities.

(3)

Activation of the General Escape Clause under the Stability and Growth Pace, Temporary framework for State aid measures supporting the economy during the Covid-19 pandemic, European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), or the Coronavirus Response Investment Initiative.

(4)

COM(2020) 456 final.

(5)

SWD(2021) 351, Annual Single Market Report 2021.

(6)

SWD(2021) 351, Annual Single Market Report 2021.

(7)

European Commission/European Central Bank (November 2020), “Survey on the access to finance of enterprises (SAFE)”.

(8)

Conclusions of the European Council, 1 and 2 October 2020, EUCO 13/20.

(9)

European Parliament resolution of 25 November 2020 on a New Industrial Strategy for Europe, 2020/2076(INI).

(10)

Competitiveness Council Conclusions, 11 September 2020, 16 November 2020.

(11)

SWD(2021) 351, Annual Single Market Report 2021.

(12)

As a response to the European Council request of 2 October 2020 to identify strategic dependencies, particularly in the most sensitive industrial ecosystems and to propose measures to reduce these dependencies.

(13)

SWD(2020) 104, Energy security: good practices to address pandemic risks.

(14)

Commission and Council recommendations on common coordinated approach as regard travel restrictions.

(15)

OECD analytical work has confirmed that global value chains not only maximize economic efficiency, but that resilient, supply chains are essential in times of crisis to absorb shocks, to offer options to adjust and to speed up recovery. Cf. Shocks, risks and global value chains: insights from the OECD METRO model, June 2020.

(16)

https://ec.europa.eu/commission/presscorner/detail/en/speech_21_745.

(17)

See SWD(2020) 54 final and SWD(2021) 351, Annual Single Market Report 2021.

(18)

It represents 70% of the EU’s GDP and an equivalent share of employment.

(19)

SMET is the high-level forum where the Commission and Member States collaboratively seek solutions for addressing Single Market obstacles rooted in enforcement or implementation deficiencies. In this first year, it played an important role in assessing Member States’ measures on borders and measures on travel restrictions that restrict the free movement within the EU.

(20)

SWD(2021) 351, Annual Single Market Report 2021, Annex I.

(21)

SWD(2021) 351, Annual Single Market Report 2021 and COM(2020) 93.

(22)

A thorough analysis to the potential of harmonised standards to facilitate cross-border activities, market potential and opening and overall economic benefit, including for SMEs and women entrepreneurs, would be carried out to identify priority areas. Impacts on working conditions and workers’ rights will be subject to thorough considerations.

(23)

COM(2019) 426 final.

(24)

Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011.

(25)

COM(2021) 219 Better Regulation: Joining forces to make better laws, https://ec.europa.eu/info/sites/default/files/better_regulation_joining_forces_to_make_better_laws_en_0.pdf

(26)

One of the root causes of payment delays.

(27)

According to the Observatory, the EU construction ecosystem has the longest disputes duration in the world (average 20 months to solve a dispute).

(28)

Estimates suggest that 11.4% of all companies are likely to exit as support dries up if they fail to get access to fresh sources of credit. SWD(2021) 351, Annual Single Market Report 2021.

(29)

That, in accordance with Article 3(1)(g) of the InvestEU Regulation, were negatively affected by the COVID-19 crisis and were not already in difficulty in State aid terms at the end of 2019.

(30)

“A Public-Private Fund to Support the EU IPO Market for SMEs” – European Commission’s study available at: https://ec.europa.eu/info/evaluation-reports-economic-and-financial-affairs-policies-and-spending-activities_en suggests a public-private IPO fund with a public investment of about 740 million EUR could increase IPOs of SMEs and midcaps in Europe by 10%.

(31)

A long-term and cross-cutting perspective on strengthening Europe’s open strategic autonomy will also be provided by the Commission’s 2021 Strategic Foresight Report.

(32)

“Executive Order on America’s Supply Chains”

(33)

The Pharmaceutical Strategy for Europe provides for actions to address these issues as regards the supply of medicines (COM/2020/761)

(34)

The Commission will release an additional detailed analysis on critical supply chains for the energy sector by summer 2021. This analysis highlights that critical raw and processed materials are essential to ensure energy security and the success of the clean energy transition.

(35)

SWD on Strategic dependencies and capacities, SWD(2021) 352.

(36)

https://ec.europa.eu/health/human-use/strategy/dialogue_medicines-supply_en.

(37)

COM(2021) 70, Action Plan on synergies between civil, defence and space industries.

(38)

COM(2021) 66.

(39)

E.g. an analysis of sensitive ecosystems identifies about 20 products imported from China on which both the EU and the US are highly dependent (including in the health, energy intensive industries, renewables and digital/electronics ecosystems). The same holds true for other close EU trading partners.

(40)

Including the Strategic Research and Innovation Agendas of Horizon Europe partnerships supported by industry and Member States, which build the basis for ERA Industrial technology roadmaps (COM(2020) 628), page 10. There are 49 proposed public private partnerships in the Horizon Europe Programme and nearly EUR 25 billion of EU contribution, aiming at mobilising at least the same amount from private partners and Member States.

(41)

COM(2020) 789 Sustainable and Smart Mobility Strategy

(42)

https://ec.europa.eu/commission/presscorner/detail/en/IP_21_226.

(43)

https://ec.europa.eu/commission/presscorner/detail/et/ip_18_6862.

(44)

The level of underinvestment in innovation procurement in Europe compared to its major trading partners is the largest in digital solutions and in R&D procurement (respectively a factor 3 and factor 5 underinvestment).

https://digital-strategy.ec.europa.eu/en/news/final-report-available-benchmarking-innovation-procurement-investments-and-policy-frameworks-across

(45)

SWD(2021) 351, Annual Single Market Report 2021, section 3 and Annex II.

(46)

COM(2021) 118 final.

(47)

SWD(2021) 351, Annual Single Market Report 2021, Annex III.

(48)

SWD(2021) 353, Toward Competitive and Clean European Steel.

(49)

COM(2020) 628 final, A new ERA for Research and Innovation.

(50)

COM(2021) 70 final, Action Plan on synergies between civil, defence and space industries.

(51)

Synergies should be developed between the transition pathways and the indicative voluntary roadmaps, as envisaged under the European Climate Law Regulation.

(52)

Taking into account the Sustainable and Smart Mobility Strategy (COM(2020) 789 final).

(53)

Annual Sustainable Growth Strategy 2021, COM (2020) 575 final. The flagships are titled: Power Up; Renovate; Recharge & refuel; Connect; Modernise; Scale-up; Reskill & upskill.

(54)

As announced in the Communication “2030 Digital Compass”, COM (2021) 118 final.

(55)

Covering clean steel, process industries, hydrogen, batteries, zero-emission road transport, clean aviation, zero emission waterborne transport, sustainable built environment and advanced manufacturing, among others.

(56)

SWD(2020) 176 final, Impact Assessment accompanying the 2030 Climate Target Plan (table 12); Agora-Energiewende & EMBER (2021): The European Power Sector in 2020. The latest National Energy and Climate Plans indicate a 72 TWh/year increase of wind and solar power generation between 2020 and 2030, but 93-100 TWh/year would be required to achieve the 55% climate goal.

(57)

See chapter 5.1 of SWD(2021) 352, Strategic Dependencies and Capacities for the underlying calculations.

(58)

European Digital Innovation Hub (EDIH) network, ECCP, EEN, and Startup Europe.

(59)

COM(2021) 118 final, 2030 Digital Compass: the European way for the Digital Decade.

(60)

Such as the European Social Fund, Erasmus or the Digital Europe Programme.

(61)

Commission Recommendation for Effective Active Support to Employment (C(2021) 1372 final).