A3-0004/94

Resolution on the state of the European electronics industry

The European Parliament,

-having regard to the motion for a resolution tabled by Mr de Donnea on the revival of the European electronics and data processing industry (B3-0492/89),

-having regard to Rule 45 of its Rules of Procedure,

-having regard to the communication from the Commission on the 'European electronics and information technology industry: state of play, issues at stake and proposals for action' (SEC(91)0565),

-having regard to the communication from the Commission on the 'European telecommunications equipment industry: state of play, issues at stake and proposals for action' (SEC(92)1049) (C3-0353/92),

-having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A3-0004/94),

A.whereas the contribution by the electronics sector to GDP could be expected to rise from the current 5% to 10% by the year 2000,

B.whereas the electronics sector is not only one of the most dynamic sectors of the economy as a whole, but is also of increasing importance for all other sectors and indeed for every household,

C.whereas the European electronics industry occupies a strong position in some sub-sectors such as telecommunications, cathode-ray tubes and software, but a weak position in the consumer electronics, components and computers sub-sectors, where there is a total balance of trade deficit of some ECU 30 billion,

D.whereas in the weak sub-sectors in question the European electronics industry achieves such poor results that it is no longer capable on its own of catching up with non-European competitors, and its very survival as an independent self-generating industry is at risk,

E.whereas there is increasing convergence in the technology of computers, telecommunications systems and consumer electronics and whereas speedy access to state-of-the-art components at a competitive price is of increasingly crucial importance for sub-sectors because product cycles are becoming shorter and shorter,

F.whereas Europe is at risk of losing control over major sub-sectors of the electronics industry and of becoming completely dependent in those sub-sectors on non-European producers,

G.whereas the European electronics market is much more open than those of the US, Japan and the newly industrialized countries, albeit for a variety of reasons, and whereas the European electronics industry's low share of the markets of its main competitors has a detrimental effect on access to technology for European firms,

H.whereas it is basically up to the electronics industry itself to ensure the necessary competitiveness on world markets, and whereas the Member States of the European Union and the Union itself have only a supporting role to play which consists principally of creating the necessary climate for the research, development and marketing of new products,

I.whereas the European character of an electronics undertaking should be measured by its actual contribution to the Community's objectives for the growth of research, competitiveness and employment,

J.whereas important parts of the European electronics market remain segmented,

1.Is of the opinion that the conditions for fair competition on world markets for electronics products have still not been fulfilled;

2.Takes the view that, in view of this uneven competition in electronics, the European authorities (Commission and Council) should play an active role so that Europe does not lose control over, and access to, sub-sectors of electronics and does not become dependent on third parties in this strategic and dynamic area;

3.Calls therefore on the Commission to deploy all the instruments of competition and external economic policy to create fair opportunities for the European electronics industry in world competition;

4.Calls on the Commission to apply the new Community powers in the areas of industrial policy to the electronics sector as a matter of urgency. Depending on the specific situation in the individual subsectors, this means:

(a)calling on the Commission to help initiatives from the private sector aimed at reorganization and rationalization with a view to improving adaptation to the world market,

(b)using, where possible, the Community's Structural Funds, the Cohesion Fund, the Guarantee Fund and the European Investment Fund to facilitate this reorganization,

(c)recognizing the political importance for the European Community of maintaining control of developments and of implementing trans-European networks for the exchange of information with a view to ensuring their interaction,

(d)providing support for research and development cooperation in respect of precompetitive and competitive innovation, in which projects supported from Community funds must be designed to ensure that product development and realization is guaranteed by the partners involved; this means that complex manufacturing technologies and horizontal products (e.g. high- purity chemistry) must be developed at the same time; in the industrial field efforts must be made, both at Community level and in the Member States, to reduce the capital cost of R & D, for which the EIB should provide low-interest loans for R & D into innovative technologies and the Member States should make arrangements within their national taxation systems to benefit research, development and demonstration in new technologies,

(e)establishing cooperation between the Member States to launch major shared infrastructure projects, in which the provisions for public procurement must also be defined so as to ensure that innovative procedures and products are encouraged where this will create a macroeconomic and social advantage,

(f)calling for a Commission communication on competition policy in a global context which permits concentration and cooperation if there is global competition and if it is necessary for the survival of the European industry as a global competitor,

(g)modifying local-content rules so that non-European firms are encouraged to engage in research and development for strategic components in Europe,

(h)systematically including a reciprocity rule in relevant Community legislation as a means of ensuring fair competition on the markets of the principal competitors and of compensating for the current low level of European access to public markets,

(i)starting negotiations with the relevant trading partners to create fair competition;

this involves

I.encouraging world monetary stability and stable, more realistic exchange rates, in particular for the US dollar and some south-east Asian currencies;

II.compliance with ILO labour rules;

III.compliance with internationally recognized environmental rules;

IV.encouraging the convergence of international rules on competition;

(j)that, following an examination by the Commission of the effects produced by solutions obtained under GATT and the applicability of the points mentioned under point (i) above, the Council and the European Parliament should deliver an opinion, before 1 January 1995, on the necessity of integrating the European Union in agreements similar to the USA-Japan Agreement on semiconductors or on the need for negotiations on an 'electronics' agreement, by analogy with the 'cars' agreement with Japan;

(k)that, following an examination by the Commission of compliance with the solutions obtained under GATT, the Council and the European Parliament should deliver an opinion, before 1 January 1995, on the necessity of making greater use of the new trade policy instrument or of any other appropriate measures;

5.Calls for the technological research efforts undertaken in the European framework programmes for research and development and pursuant to EUREKA to be strengthened and speeded up;

6.Stresses moreover the need for further harmonization of technical standards and refers in this respect to the successful introduction of the GSM standard for mobile telecommunications services;

7.Reaffirms, in conclusion, the responsibility of undertakings themselves and their workforce in maintaining and restoring competitiveness; stresses in this connection the need to reverse the trend in almost all the Member States of the European Union towards an increase in wage costs and social insurance expenditure which is far in excess of any increase in productivity;

8.Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States.