European industry: Companies in Italy, Germany, and France call for change to tackle deindustrialisation

Brussels – A strong industrial base is the cornerstone of a sovereign Europe, but today it is increasingly under threat. This is the warning issued today, 5 November, in Berlin by Confindustria, the German BDI, and the French MEDEF, meeting as part of the Trilateral Business Forum with a document entitled “How to save European industry”. The three organisations, in conjunction with BusinessEurope, are calling for urgent action to “reverse the process of deindustrialisation.” Key factors include geopolitical tensions, global overcapacity, energy costs, strategic dependencies, and public finances under pressure.

On the trade front, businesses are calling for a more assertive policy. Incentives should be focused on sectors where Europe can maintain its technological leadership, while trade defence instruments should be strengthened and extended beyond steel to tackle overcapacity and unfair practices. Substantial reciprocity is being called for with China, including investment requirements: a minimum proportion of EU workers, European components, and data retention.

The chapter on investment begins with a key figure: up to €1,200 billion more is needed each year for competitiveness, decarbonisation, and resilience, and the current rate is insufficient. The next Multiannual Financial Framework must therefore safeguard spending on competitiveness, ensuring stable funding for the European Competitiveness Fund, Horizon Europe, and Cohesion Policy, with rapid access and allocation based on merit. Strengthening the EU’s investment capacity, they warn, must not result in new tax burdens for businesses. Governments are called upon to exercise fiscal discipline and draw up credible medium-term plans, prioritising strategic spending.

When it comes to technology, digital sovereignty depends on adequate resources, proportionate regulations, and enabling infrastructure. Europe must capitalise on its strengths, particularly in quantum computing and physical AI.

Considerable attention is devoted to energy, a decisive factor in investment decisions. There are calls for stable prices in line with those of international partners, a technology-neutral approach, and the maintenance of lower taxation on electricity, compensation for the indirect costs of the ETS, and reductions in network tariffs, particularly for energy-intensive consumers. Timely investment is also needed in national and cross-border networks, including through increased funding from the Connecting Europe Facility.

Businesses welcome the conclusions of the October European Council on energy costs and the extension of METSAF, the temporary framework for state aid in the Middle East, announced by the Commission. Regarding the review of the ETS, they are calling for sustainable costs and decisions guided by technological maturity and economic viability, rather than conditions on investment.