On 1 July the six-month Italian presidency period of the European Union council started. The Italians' first commitment, as our prime minister Matteo Renzi has illustrated, is to focus on growth and employment. The achievement of these two objectives is strictly linked to structural reforms and innovation in EU countries with a clear assurance that flexibility mechanisms will be used to promote investments.
In the last few years, the EU has primarily concentrated on austerity and financial stability, leaving the real economy, industrial policies and the social system to play second fiddle. This has also led to a process of 'de-industrialisation' that has dealt a heavy setback to industrial competitiveness, particularly that of small-and-medium enterprises. Poverty has constantly increased and the gap between different social categories is now larger than before. We need to promptly tackle this in order to decrease social imbalances. It is compulsory to encourage an 'industrial renaissance' to fight unemployment and boost competitiveness.
The Italian presidency will insist on placing industry at the heart of the EU agenda by means of greater investment and the simplification of bureaucracy and regulations which are currently blocking economic recovery.
"Good industrial development is the basis for a better distribution of income"
Re-industrialisation will be at the centre of the programme of the Italian presidency and that will contribute to the achievement of the goal of creating a European industrial sector accounting for 20 per cent of Europe's GDP by 2020. Italy will be engaged on recovering the region's industrial competitiveness with an emphasis on facilitating access to credit by means of a centralised European funding mechanism.
Good industrial development is the basis for a better distribution of income, and is strongly linked to the achievement of universal and efficient welfare systems. Industry is also pivotal for the development of the knowledge economy, as the bigger part of total expenditure on research and innovation (R&I) is developed by the industrial sector. R&I must become the core of the industrial transformation in order to give a clear answer to Europe's competitiveness needs in the global arena.
Elements such as digitalisation, development of human capital, creation of new jobs, sustainable and environmentally friendly industry, technology innovation, financing instruments supporting the real economy industry and labour are the elements that should characterise the new industrial revolution.
To achieve smart growth Europe needs to mobilise and maximise the innovation capacity of every region through open innovations and the alignment of public and private investment. I would also like to stress the importance of SMEs for the EU. SMEs provide millions of jobs in Europe and are continuously innovating in the provision of their goods and services. Around 98 per cent of all businesses in the EU employ fewer than 250 employees and 85 per cent of net new jobs in the EU have been created by SMEs. A real renaissance will also pass through support to the European network of SMEs and through the promotion of products made in Europe, that should be safe and of high quality.
The manufacturing industry is extremely important for sustainable growth in the EU. Europe's manufacturers offer innovative and high quality products to the world. 'Designed and made in the EU' should become a symbol of the supreme quality and innovation of our continent. I am confident that the Italian presidency will reinforce European industry through negotiations on the regulation on safety of products. Europe needs a contribution from everybody. Only with a strong commitment and real cooperation between the institutions we will able to overcome the crisis and re-launch our continent on the global scene.