Europe needs to put its foot on the industrial accelerator

The former European Central Bank President Mario Draghi put his finger on Europe’s problem in his report on EU competitiveness.

“For Europe to remain free,” he wrote, “we must be more independent. We must have more secure supply chains for critical raw materials and technologies. We must increase production capacity at home in strategic sectors. And we must expand our industrial capacity.”

His comments were prescient given the new political dynamic arising from the change of political direction in the United States, and the requirement for Europe to ‘stand on its own two feet.’

The clean industrial deal (CID) presented by the European Commission sets the right tone and is a step in the right direction. However, if European industry is going to be free to innovate, invest and build on our many manufacturing strengths. Butwe need the European Commission to deliver on these promises – and quickly.

While we applaud the clear ambition to be a continent of industrial innovation and production. And we want more streamlines and proportionate – or simplified - regulation. But the warm words must result in concrete and clear actions at every level of decision making.

Europe is indeed facing a watershed moment, as the President of the European Commission said when launching this initiative. In more ways than one Europe is on a war footing. In the battle for competitiveness in a world that no longer boasts a level playing field for trade. In the battle for innovation and the ability to harness the benefits of new technology and AI. And in the battle for democracy and self-determination – building a defence capability to match any potential threat to our borders.

The one thing missing from the announcements about the clean industrial deal is the importance of valuing the core industries we rely on today and which will act as the foundation for any future industrial growth and competitiveness.

There are many industrial success stories in Europe – which may seem surprising given the level of regulation and bureaucratic uncertainty businesses have faced in recent years.

We need industries like ours – producing advanced lead batteries used in everything from cars and trucks to tanks and submarines– to continue to grow and innovate as part of an EU battery eco-system. Europe is home to some of the most advanced battery manufacturing and recycling capabilities in the world. You just may not have heard about them.

And we are probably the best example of the circular economy in action. All the lead batteries collected at the end of their life in Europe are fully recycled and re-used in making new batteries.

So our plea to decision-makers is simple. Get behind the industries of today so they can flourish tomorrow. Let us get on with what we do best. Ensure regulation is proportionate, predictable, and consistent across policy areas. Support innovation and investment by ensuring we have a stable legislative and regulatory platform on which to build. And create the best possible conditions for us to continue to invest in people and skills.

Our technology will be an important part of the jigsaw helping achieve greater electrification and decarbonisation. Value the industries we already have in Europe, tear down the barriers and let them flourish.

Europe is the largest exporter of manufactured goods and services. Our strengths outweigh the weaknesses. Businesses value stability and certainty. In these tumultuous times they could be our greatest asset.