Leaked document reveals EU's ambitious industrial plan
The European Commission has formulated a series of comprehensive plans which it hopes will revolutionise the EU's industrial sector. There is a heavy focus in the plans on the development of key technologies with 'strategic importance' including measures to go "beyond 5G, towards 6G".
The plans were set out in a document entitled 'Building block for a comprehensive industrial strategy' which was leaked to EURACTIV and looks at several key areas for developing EU industry in a sustainable direction whilst preserving competition and innovation.
One of the key areas which the document cites is that of next-generation mobile technology. It references a "strategic European partnership" on research and innovation in smart networks and the future move from 5G towards 6G which would involve EU member states reinforcing their "European leadership in network technologies."
Technologies such as “Internet of Things, robotics, nanotechnologies, microelectronics, 5G, high-performance computing, quantum computing, and critical digital and data cloud infrastructure" would meanwhile have new industry standards introduced.
The forthcoming Digital Services Act - the EU's ambitious plans to regulate sections of online activity - is also covered in the document which outlines areas likely to face action. These include the issue with transparency in online advertising, dissemination of illegal content and the reinforcement of regulatory oversight in a "single-market friendly" manner.
There were also references to the leaked draft white paper on artificial intelligence with the document saying that data will be invaluable in the EU's future AI strategy.
“The rising importance of the data economy (including data ownership), requires setting up an appropriate legal framework, which encourages and facilitates the sharing of non-personal data (with safeguard for commercially sensitive data) while fully respecting data protection standards,” the paper, which was also leaked to EURACTIV, said.
“The availability of data is a prerequisite for a broad uptake of digital technologies, such as artificial intelligence and blockchain.”
The AI draft paper revealed that the Commission has been considering whether to impose a temporary ban on facial recognition software due to concerns over the lack of an established legal framework. The ban could, however, have an impact on current AI projects across the bloc.
It also mentions the introduction of a "regulatory framework" on the EU's AI strategy which includes questions on accountability, transparency, liability and safety, in a flexible manner that is “able to respond to future emerging technologies.”
The document also cited future legislation "in support of fully digital processes at the border and closer cooperation between customs and other regulatory authorities in order to facilitate trade while enhancing the protection of the Union.”
This part of the leaked document could give the current UK government, led by Boris Johnson, to push for 'alternative arrangements' post-Brexit, in order to avoid a hard border between Northern Ireland and the Republic.
The document also says that the EU will work toward levelling the global playing field by addressing distortions of competition by third countries and their companies and finding the “right balance between protection and openness”.
The Commission says it wants to ensure reciprocity of market access for EU companies through trade and investment agreements. “The International Procurement Instrument will allow the EU to gain leverage in negotiations to open third country procurement markets”.
When it comes to the level playing field within the single market, the Commission says the EU will create new instruments if necessary and use “trade defence mechanisms robustly”.
Particularly, the EU executive mulls an instrument on foreign subsidies “addressing the distortive effects of non-EU state subsidies” in the single market.
It also suggests limiting procurement in the context of EU-funded projects to bidders from third countries with reciprocal level of market access and addressing the impact of foreign subsidies in public tenders.
The leaked draft document also calls for an improvement on the link between the bloc's defence and space policies.
“Space and defence technologies are interrelated. Defence industry relies on space-enabled services such as global positioning, satellite communication or earth observation.”
“Space industry actors are also defence technology and capability providers and share some common characteristics […] they require public research and development spending to maintain expertise and industrial capabilities, in particular in critical technologies,” the document says.
The document also warns that both industries face rising global competition in terms of AI and Internet of Things.
“By seeking synergies and cross-fertilisation between space and defence in EU programmes, the EU should make more effective use of resources and technologies and create economies of scale”.
The draft also revealed the Commission's approach to a new EU pharmaceutical strategy and the creation of a common health data space.
The new pharmaceutical strategy's focus would be on finding the right balance between availability, affordability and need to ensure the security of the supply, which were all already listed at the top of Health Commissioner Stella Kyriakides' mission letter.
A controversial aspect of the strategy is privacy implications of the European common health data space which will deal with codes of conduct of secondary use of data in healthcare and individuals access to their medical data.
There was also reference to the EU's new climate strategy which, the document says, “will be one of the main drivers contributing to the objective of a climate-neutral economy by 2050”.
It has already been stated by EU officials that the climate strategy will not work without an industrial equivalent. As such, the Commission says it aims to make inroads into hard-to-decarbonise sectors and mentions its intention to use public-private partnerships as a means to “develop and demonstrate breakthrough technologies for clean steel”.
The strategy also cited Important Projects of Common European Interest (IPCEI) as a possible vehicle for investment in hydrogen technology, which EU climate chief Frans Timmermans recently said has a "pivotal role" for the future of clean fuel in Europe. France was recently given the green light for a multi-billion euro battery IPCEI meaning the most stringent state aid rules will not apply.
As anticipated, a new circular economy plan is on the way, including a possible revision of eco-design and energy labelling. A review of the outdated Batteries Directive is also on the cards.
The draft plan also confirms President von der Leyen's pledge to adopt a strategy for sustainable and smart mobility, which Commission sources say will be ready later this year.
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