Europe’s economy is being challenged by political crises at home and abroad. International, rules-based free trade is called into question from within the Western hemisphere for the first time in decades.

That prompts some to ask what Europe’s politicians are doing to protect our industry and help it thrive.

Let’s first get the facts right. Europe’s industry is a world leader. In 2014, it had a higher share of world trade of goods and services than the US, China or Japan. It provides 50 million direct jobs. That’s 20 per cent of our workforce.

More generally, globalisation has brought enormous benefits to the underprivileged economies of the world. It has lifted hundreds of millions of people out of poverty and created millions of jobs for Europeans.

But it has also brought with it a disruption. The benefits of globalisation were, in some instances, distributed unequally, leading to insecurity and feelings of injustice.

As ever, this has created fertile ground for snake-oil salesmen and women proposing seemingly easy solutions.

“Let’s keep out foreigners, subsidise our industries” is their battle cry.

It might sound tempting. But it would be disastrous for most. This is not the way to safeguard our future. In it lies the road to Europe’s economic ruin.

Instead, we need to address the legitimate concerns of those who have lost out from globalisation. Now is not a moment for being shy in protecting European jobs. We need to make sure that our competitors play by the rules. We need to remain ready to show our teeth with anti-dumping measures against unfair trade practices.

We need to continue encouraging public and private investment in research and clean technologies. We need to embed globalisation in a broader package of policies – including fiscal, educational, social – to facilitate adjustment. And we need to support those regions and groups that lose out from technological change and international competition.

We will continue to be strong, but we will never advocate a ‘buy European only’ policy

We will continue to be strong when we have to. But we will never advocate a “buy European only” policy. Closing the doors to foreign competition is a populist quick fix that might work for a short while. But in the long run, it will simply cut European industry out of global value chains and the cutting edge of technological development.

Why develop a better product if you can simply shut out the competition? Why invest in new technology and human skills if you can live on tax subsidies and tariffs?

Europe will stay open for business. An open, outward-looking EU can become the destination of choice for global talent, investment and business. Over half of EU businesses are already part of global value chains, and almost 16 per cent of our world-class products are exported around the world. The case for an open economy remains as strong as ever.

Rather than shutting the door to foreign rivals, we must help ours out-compete them on merit. We must draw on our strengths – our deep pool of talent, educated workforce, our traditions of innovation and not least our 500 million people in a Single Market with common rules.

This requires a new modernisation effort: embracing technological change, integrating products and services, developing energy efficiency to save money and become less dependent on energy imports.

And we must invest in our people. Because when we talk about industry, we are talking about people – blue collar, white collar, on production floors, in engineering departments and in sales offices. We need to ensure they have the right skills and support those who take the risk of starting a company or scaling one up.

And in cases where a factory closure becomes inevitable, it is not enough to re-educate our workforce. People also need a new job, and many of them don’t want to move somewhere else.

Old industrial sites can be transformed, not just to create expensive riverside apartments but also to create new jobs for local workers. Regions have to learn from each other. Look at Duisburg, once a centre for coal and steel, now home to manufacturing and logistics centres, all on what once were brown field sites.

EU investment – in particular the Investment Plan for Europe – is there to support the transformation to modern, clean and thriving industry. We have provided finance for the Nord Pas-de Calais region to support its move to a low-carbon economy. We have helped Polish steel wholesalers to introduce new services and create new jobs.

We supported the construction of a new bio-product mill in Finland, as well as Europe’s first facility for recycling and e-melting titanium metal.

Whether it is 3D printing, bio-based plastics for packaging or new systems to cut water use in the chemical industry, the EU will continue to fund and invest in pioneering innovation in its industry.

The opportunities are there for industry – and the EU as a whole. For this we will continue to need investment both from at home and abroad.

Openness helps, protectionism does not.

Jyrki Katainen is European Commission vice-president and Elżbieta Bieńkowska is Commissioner for Internal Market and Industry.

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