Under the headline "Industrial Policy in Europe: Collaboratively Enabling Industry Transformation," the DIHK explains how the EU can enhance the conditions for European industry by establishing a reliable, market-economic framework. This would empower businesses to tackle the green and digital transformations ahead.
The measures proposed by the European Commission to make manufacturing in Europe more attractive are, according to the DIHK, overly regulatory and not sufficiently open to technology.
"Europe must become more agile, faster, and more digital."
Peter Adrian
-- DIHK-Präsident
The position paper outlines what is needed for a fresh sense of optimism. The key approaches include:
Practical Implementation Matters
Industrial policy must be developed in close dialogue with businesses, especially considering the feasibility for small and medium-sized enterprises. Bureaucratic processes tie up skilled personnel urgently needed elsewhere. For companies, reliability and planning certainty are critical—even for delegated and implementing acts outside of regular legislative processes. Institutionalized inclusion of the broader economy could help prevent additional strains, according to the DIHK.
Open-Technology Promotion Processes
To propel both green and digital transformation, DIHK advocates a promotion strategy that is open to various technologies and industries, alongside building transfer infrastructures—including living labs and test and validation environments for disruptive innovations.
Many EU programs are not widely known within the broader economy or are too complex for smaller enterprises to apply for. Targeted information, standardized and digitized procedures, more automation, and systematic enterprise experience exchange could address these gaps.
Standardizing Circular Economy
Circular business models enhance Europe's supply security—heavily reliant on imports for many raw materials—and contribute to the sustainable economy. To succeed in increased recycling, European norms and standards that ensure legal certainty, reduce bureaucracy, and create markets should be developed collaboratively with businesses, recommends DIHK.
The digital product passport could facilitate the return of high-quality secondary raw materials to production cycles. For this to happen, unified requirements for processes and master data are necessary. Additionally, data protection and safeguards against industrial espionage must be ensured.
Prioritizing Market Economy
State interventions pose risks of market distortion and should only be well-justified. Businesses are responsible for resilience and diversification; rigid requirements for stockpiling or supply chains are excessive from the perspective of the commercial industry.
Industry: Europe's Economic Pillar
Industry, particularly the industrial SMEs, remains the backbone of value creation, employment, education, and innovation in Europe. It drives climate and environmental technologies forward, ensuring prosperity, sovereignty, and climate targets. Politics and society should recognize this role, improve framework conditions, and foster a sense of momentum for transformation.
Core Proposals by the DIHK
- Prioritise regional policies: Establish competitive framework conditions (affordable energy, skilled workforce, fast approvals, capital access, reduced bureaucracy, simplified documentation requirements, freedom for innovations)
- Include industry as a partner: Develop measures in close collaboration with businesses; always consider feasibility for small and medium-sized enterprises (SMEs) and increase planning reliability
- Targeted and open-ended support: Strengthen technology- and sector-neutral innovation support; generally prioritise investment grants over operating cost subsidies; expand real laboratories, testing, and validation infrastructures
- Simplify EU funding programmes: Increase awareness, standardise and digitise application processes, reduce bureaucratic efforts; seek continuous exchange of experiences with companies
- Strengthen circular economy: Develop/adapt European norms and standards (including quality standards for secondary raw materials), avoid bureaucracy, establish legal certainty; implement digital solutions such as the digital product passport in a practical, data-secure, and SME-friendly way
- Uphold market-based principles: Restrict state interventions to justified exceptions; businesses should primarily shape resilience and sustainability independently
- Scale good practices: Extend facilitations from the Chips Act, Net-Zero Industry Act (NZIA), and Critical Raw Materials Act (CRMA) to other sectors; build research, transfer, and production capacities for future technologies
- Expand European coordination: Coordinate industrial policies and Important Projects of Common European Interest (IPCEIs) EU-wide, regularly evaluate, and shape requirements to improve SME access
- Support resource exploitation: Promote diversification through new trade and raw material agreements instead of rigid production targets; advance European resource extraction and strengthen societal acceptance
- Emphasise the role of industry: Communicate and integrate contributions to prosperity, sovereignty, employment, education, as well as climate and innovation successes into society
Here you can download the position paper:
"Industrial Policy in Europe: Collaboratively Enabling Industry Transformation" (PDF, 158 KB) (only available in German)
- Key areas:
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- Industrie
Released 29.05.2024
Modified 17.03.2026
Contact
Thorben Petri
Director European Economic Policy
Dr. Susanne Gewinnus
Director Industry and Research Policy