The document discusses the challenges facing the manufacturing and services sectors in the EU and the priorities of the new European Commission to address these challenges. It outlines barriers remaining in the internal market that limit growth. Key priorities for the Commission include developing a single market for goods, services, and procurement; modernizing industry through new technologies; and establishing a digital single market. Initiatives will focus on better enforcing rules, simplifying regulation, and supporting small businesses to strengthen the EU's industrial base and capitalize on opportunities in manufacturing and services.

1. Manufacturing and services:
challenges for the new Commission
Joanna Zawistowska
DG Internal Market and Services
European Commission

2. Priorities of the new Commission
• • New Boost for Jobs, Growth and
• Investment
• • Deeper and Fairer Internal Market with a
• Strengthened Industrial Base
• • Connected Digital Single Market
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3. Challenges facing the EU economy
• • Growing international competition, including in EU
growth sectors (business services)
• • Barriers to internal market remain and growth
potential of Single Market not fully exploited
• • Declining share of manufacturing in GDP
• • Capitalising on the digital revolution and potential of
Industry 4.0
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4. New reality and new challenges
• • New structure of the Commission and internal
reorganisation to better respond to future
challenges
• • Need to respond to calls for action from the MS:
• state of play of the Internal Market for
Services
• revitalisation of industry
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5. Industry performing well, but at risk
Very competitive on international markets,
with a trade surplus of over € 450 billion
euro in 2013…
but...
With a declining EU share of value added in the
manufacturing sector worldwide and a loss of 3,5 mn
jobs since 2007
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6. Services input in the economy is growing
Services account for 71% of EU GDP and 67% of EU
employment
The share of
manufacturing output
in the economy
decreases but the
share of services
increases (1995-2011)
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7. Services are increasingly intertwined with manufacturing
Input/output links go in both directions:
• Services are important inputs for manufacturing with
40% services input into final manufactured goods (e.g.,
business services)
• Manufacturing is an important input to services (e.g.,
construction, transport services)
In addition, service providers and manufacturers are providing
integrated services/goods solutions
Value added in manufacturing
in the EU
2011 (value chain approach)
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8. Europe needs is an Internal Market for Goods and
Services, with a strengthened industrial base and a
strong digital angle.
• Key ingredients:
• 2015 Single Market Strategy for goods, services and procurement
 Renewed strategy for services, key sectors: business services,
retail, construction
 Single Market in products
 Smart procurement
• Smart and Clean Industry, key objectives: modernize and revitalize the
European industrial sector; grasp the opportunities offered by new
technologies
• Digital Single Market
These initiatives respond largely to the recommendations of the HLGBS
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9. Renewed Services Strategy
State of play:
•• Stakeholders' workshops and on-line consultation
•• Economic impact of remaining barriers
•Actions:
• Better enforcement of the Services Directive
• Renewed service strategy to tackle issues of legal
framework fragmentation, administrative burden,
insufficient information provision, lack of mutual
recognition of standards and certificates.
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10. Single Market in Products
• • Enforcement of existing legislation
• • Simplification and Better Regulation
 • Link between goods and services
 • Extending the Single Market beyond EU borders
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11. Smart Procurement
• • support the transposition and implementation of the
new legislative package
• • country and sector approach to identify real
issues and tackle them
• • professionalization of public procurement and
support to SMEs
• • emphasis on e-procurement
• • public procurement as a tool for the new EU
industrial policy
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12. Smart and Clean Industry
•
• Digitization and the inter-connectivity of traditional
industry
•
• Integration of intelligent services industry
• Adoption of clean technologies and sustainability
• • Horizontal measures (access to finance, skills, business
environment, internationalization)
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13. Digital Single Market
• DSM VP Ansip, cooperation of several commissioners
• aim to generate up to € 250 billion of additional growth
• horizontal policy, covering all sectors of the economy and of
the public sector
• level playing field and simplification for businesses
• wider access for consumers
• Ambitious actions already in the first six months:
• modernising copyright rules
• more ambition to the ongoing reform of telecoms rules
• modernising and simplifying consumer rules for online
purchases
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14. Thank you!
Joanna Zawistowska
joanna.zawistowska@ec.europa.eu
Further information
Internal Market website:
http://ec.europa.eu/enterprise/index_en.htm
Stakeholders' questionnaire:
http://ec.europa.eu/eusurvey/runner/businessexperiencesservices
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