Challenges in Formulation of EU’s Industrial Policy

The given essay is a descriptive paper, which includes complete analysis of the given topic. The essay is based on a very important topic related to the industrial policy of the European Union. The description of the essay incorporates a brief introduction of the industrial policy of the European Union. The Industrial policy of the European Union is engaged at the two stages. These two stages are the level of Member States and the level of European Government. In addition to this, the major challenges faced in the process of formulation of the industrial policy of European Union in the light of globalize competitiveness are also analyzed.

The industrial policy of the European Union has very broad principles, which are very effective for the business organization to improve their market competitiveness. The European Union’s industrial policy is also helpful to compensate the harm borne by the business enterprises due to failure of market conditions. There were certain critical points in the industrial policy related to the business problems. These points were very significant and thus, made the formulation of the industrial policy for the European Union raise several challenges in the globalize competitiveness.

The Government of European Union wanted to overcome these challenges in an effective manner, so that the business process of the enterprises in the nation could be made smooth and easily attainable. Thus, the analysis of this essay is quite thorough and imperative from the European Government’s point of view. Introduction: EU’s Industrial Policy The European Union’s industrial policy was adopted in the year 1990. Before 1990s, there were various difficulties in the business policy. The changes made in the industrial policy after 1990s brought several specific objectives to improve the business environment of the European Union.

It developed the cooperation among different business organizations. This new policy was made by the European Commission, which sustained an appropriate business framework for the European business organizations. The new industrial policy established by the European Union developed a very dynamic and strengthened industrial base, which contributed in the growth and progress of the nation and also supported the leadership of the country in the field of economy and technology, to overcome the global competitiveness.

After the year 2002, the European Commission has provided an enormously strong base for the industrial policy of the European Union. During this period, the communication channel focused on the slower speed of the growth productivity in European Union. The communication channel absorbed the attention of the country towards the goals made by Lisbon European Council for the country itself. According to these goals, there was a provision of active information grounded and the most competitive economy, in order to protract the better opportunities of job and social development till the end of the year 2010.

After the written agreement of Paris, in the last recent five decades, the nature and intensity of the industrial policy of Europe has drastically changed. These changes occurred due to several complicated features of the business environment of the European Union. The complicated features presented several complications in the analysis of the industrial policy of European Union. The challenges posed in front of the European Union included comparison between the two features of the industrial policy of EU such as, the positive analytical approaches of the European Union’s industrial policy and normative economy of the European Union.

The industrial policy of the European Union has become very much helpful for it to match the objectives set by Lisbon and Gothenburg. The enlargement occurred in the European Union brought several changes in the progressive landscape of the Europe and in the problems of the industries faced by the new member states of the Europe. In this magnification of the European Union, it was essential to find out the challenges, which were really grave for the formulation of the effective industrial policy for the European Union.

For the framework aspects of the European Union, the two points of the industrial policy are vital namely; economic and institutional features of the European Union. Besides, the specific and important features of the industrial policy of the European Union, it has to face several challenges in the era of global competitiveness. The ‘globalize competitiveness’ is a very important aspect for the industrial policy of European Union to be considered during its formulation. Globalize Competitiveness The term global competitiveness is intricate to define.

‘Globalization’ is chiefly conceived as the heart of business and economic competitiveness. The following are the global factors such as international conventions, agreements, declarations, rules & regulations, etc. and are identically applicable to business firms, in order to confront the cut throat competition in the comprehensive market. All the global factors basically refer to the global environment. Hence, it is very important to clearly realize the international connections consequence and should operate with the business systems, in order to turn into a global leader in numerous product and services lines.

Both the terms i. e. Globalization and Competitiveness progress in waves. At the back of each of the sequential wave, there has been its own mode of procedure possessed & business logic. Growth and policies are positively linked with each other. Thus, it is said that only through the effective industrial policies, business around the globe could easily attain the higher growth at the same time easily. Each and every country has to properly understand or match its industrial policies to stack up against those of the other nations in a capacity, so that it will easily accomplish and maintain economic growth.

‘Head to Head’ competition is like the aspects of growth, in which the one country’s or region’s gains can be at the disbursement of another country or region. Basically, there are two aspects of the Global competitiveness. As per the first aspect, the whole world is considered to as the prospective consumers; to whom we will offer the products through any mode i. e. web, ship, etc. In order to be globally competitive, a company has to contend in opposition to other existing companies, which are local companies in other countries.

On the other hand; second aspect mainly pertains to those business organizations, which are to increase their market volume using outsourcing as their business, in more than one country at a very low cost. By this, these business organizations provide a great cost advantage to the outsourced countries in comparison to the competitors operating in the same business line. The basic policy areas of the European Union (EU) are the global competition policy, which mainly leads to the unproblematic functioning of the European Market. For the economic and social integration, it is conceived as an essential instrument.

Besides that, globalize competitive policy also plays a foremost role in the various aspects; such as propose assuring clients welfare, maximizing the best allocation & utilization of resources, chase productive efficiency through giving economic agents the right motivators, invention and quality. In addition to the above mentioned factors, low prices and employment are also considered in this policy. Globalize competitiveness is leading issue in the European Union. Hence, the European Unions try to put more attempts, in order to formulate & implement an effective global competition policy in the EU.

For maintaining a balance among the large & local firms in the dissimilar markets, there is great necessity for an international model of competitive rules because it is in privilege of the most powerful ones. In addition to this, it will also put off growth in less privileged areas of the developing countries. Global competition entails that there ought to be common criteria, regulations and supervision rather than no rules & regulations. Therefore, it is concluded that there is a necessity to be advanced to easily accomplish a general criteria in rules & regulations.