The European Union (EU) needs to refocus on boosting its industrial base and competitiveness for a variety of reasons:
Economic competitiveness: In recent years, the EU has faced increasing competition from countries such as China and the United States, which have been investing heavily in their own industrial bases. This has led to the EU losing market share in key industries, such as automotive and technology. To maintain its economic competitiveness, the EU needs to focus on boosting its own industrial base.
Technological leadership: The EU is facing increasing competition in key areas of technology, such as artificial intelligence and 5G networks. To maintain its technological leadership and shape the future digital landscape, the EU needs to invest in its own industrial base to ensure that it has the necessary capabilities to compete globally.
Jobs and growth: A strong industrial base is crucial for creating jobs and fostering economic growth. Without a strong industrial base, the EU may struggle to create the jobs and growth necessary to support its population.
Supply chain security: The COVID-19 pandemic has highlighted the vulnerabilities in global supply chains, with many countries struggling to obtain the products and raw materials they need. To reduce its dependence on other countries, the EU needs to focus on boosting its own industrial base and fostering domestic production.
Reducing carbon emissions: The EU has ambitious targets for reducing carbon emissions and it needs to decarbonize its industries to achieve those targets, which means that it needs a strong industrial base to develop and scale-up green technologies.
In summary, the European Union needs to refocus on boosting its industrial base and competitiveness for economic competitiveness, technological leadership, jobs and growth, supply chain security and reducing carbon emissions, which will ultimately support its long-term economic and social goals. This requires investments in R&D, digitalization, education, infrastructure and a favorable policy environment.