Blueprint 'Manufacturing Europe's future'
Bruegel's Reinhilde Veugelers and André Sapir presented a Blueprint 'Manufacturing Europe's Future' at Solvay's 150th anniversary.
Bruegel Director Guntram Wolff writes
"'Industrial policy is back!' This is the message given in the European Commission's October 2012 communication on industrial policy (COM(2012) 582 final), which seeks to reverse the declining role of the manufacturing industry, and increase its share of European Union GDP from about 16 percent currently to above 20 percent. Historical evidence suggests that the goal is unlikely to be achieved. Manufacturing's share of GDP has decreased around the world over the last 30 years. Paradoxically, this relative decline has been a reflection of manufacturing's strength. Higher productivity growth in manufacturing than in the economy overall resulted in relative decline. A strategy to reverse this trend and move to an industrial share of above 20 percent might therefore risk undermining the original strength of industry -- higher productivity growth.
This Blueprint takes a different approach."