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Dear colleagues,
As we enter the final stretch of a hyper-active EU legislative term, political attention is shifting to the challenges of absorbing the unprecedented volume of new EU legislation. As this regulatory tsunami looms over us, leaders including Commission President von der Leyen and French President Macron are questioning European companies’ capacity to handle this influx effectively. While our industries welcome the focus on strengthening the EU's industrial base and fully support its net-zero goals, we must also recognise that regulation isn't always the sole solution to societal challenges – and can be counterproductive when it is not well-designed.
There is no room for complacency. Our Spring Economic Report paints a sobering picture. Adjusting for inflation, it forecasts a 2.3% decline in turnover and a 7.5% fall in investment for 2023: a clear warning sign, considering our industries account for one-third of the EU manufacturing base and are making the gear required for net zero. Unfortunately, the Commission's industrial policies have on balance done more harm than good to our competitiveness, leaving many companies feeling abandoned by the EU.
So, what do we need? Our priorities lie in creating better underlying conditions for competitive advanced manufacturing and electrification technologies, tackling unnecessary regulatory obstacles, striking the right balance between public subsidies and private investments, and strengthening Europe’s trade relations with international partners. On this point, we have put forward a proposal to next week’s meeting of the EU-US Trade and Technology Council for a mutual recognition agreement on conformity assessment for machinery and electrical equipment. This presents a crucial opportunity for progress in transatlantic cooperation, bringing mutual competitiveness benefits and demonstrating how joining forces can advance shared manufacturing interests.
I look forward to discussing these topics with many of you at our upcoming Spring Convention in June.
Best regards,
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Joint Business Statement on safeguarding the environmental and climate benefits of the ESPR
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