The European Trade Union Confederation (ETUC) stresses that any ‘made in Europe’ policy must deliver quality jobs, strengthen industrial production and secure Europe’s economic future amid rising jobs losses.

The ETUC’s call comes after the publication of an op-ed with European Commission Executive Vice-President Stéphane Séjourné about plans to introduce a European preference in public procurement, which says: “Whenever European public money is used, it must contribute to European production and quality jobs.”

The European preference must be included in the upcoming Accelerator Act, which must be allowed to move forward. The European preference is a way to ensure public money works in the interest of workers and communities across Europe.

But the ETUC stresses that this policy:

• Must be backed with massive investment, including by fast-tracking the EU Competitiveness Fund, to support a pro-active industrial policy rather than further austerity;
• Must include social conditionalities which ensure public money goes to companies that create and maintain quality jobs in Europe, across services and manufacturing;
• Must not be undermined by deregulation policies, such as those contained in the Letta and Draghi reports or the Commission’s Omnibus legislation, which will do nothing to resolve Europe’s economic challenges.

For trade unions, European preference must not be just about geography or an abstract principle. It must be firmly anchored in what really counts: the creation and protection of quality jobs, collective bargaining, strong labour standards and sustainable, long-term investment - as well as fair taxation, not deregulation, austerity.

Esther Lynch, General Secretary of the ETUC, said:

"The wave of job losses in manufacturing and other sectors should be a wake-up call for the EU policymakers. Companies are not investing enough of the profits they are making, while dividends and share buybacks are on the rise.

“European preference must go hand in hand with supporting workers and Europe’s industrial capacity not with weakening labour rights or employment protections and standards. Public investment must strengthen our productive base and deliver quality jobs and promote collective bargaining through social conditionalities, not fuel a race to the bottom or accelerate offshoring. This is about using public money to build a fair, resilient European economy that delivers for working people”

“At a time when too often European institutions are pushing deregulation as the answer to Europe’s challenges, a European preference promoting quality jobs offers a real alternative. It shows that competitiveness can be built through investment, strong labour standards and quality jobs — not by stripping away workers’ rights.”

The ETUC stresses that trade union involvement and strong social dialogue are essential to ensure that European preference is designed and implemented in a way that delivers for workers, the economy and Europe as a whole.

With manufacturing and other sectors facing serious job losses across Europe, ETUC warns that strong public investment policies must help sustain quality employment in Europe.

Judith Kirton-Darling, General Secretary of industriAll Europe, said:

“Europe’s industrial base is at a crossroads. After decades of offshoring and cost cutting, we have watched too many of our world leading industries slip away—and with them good jobs, strong communities, and our strategic autonomy. Deregulation won't save European industry. The green and digital transitions should be our chance to turn this around, but only if we choose an industrial policy anchored in fairness, sustainability, and shared prosperity.

“There is no silver bullet. Rather we need massive investment not the austerity proposed, and a proactive industrial policy with social conditionalities on all public support. Local Content Policies are a proven way to make that happen. A genuine ‘Made in Europe’ strategy would ensure that public investment creates value here at home—jobs, skills, innovation—not just profits extracted elsewhere. To do this, the scope should reflect cross-European value chains, both in terms of geographical coverage (EU, EFTA, candidate countries & the UK) and sectors. Made in Europe should be a mainstream principle across all industrial policy instruments.

“Today’s opinion piece co-signed by Executive Vice-President Sejourne, over 1000 industrialists and the European trade union movement is a clarion call to put this into action. As it says, whenever European public money is used, it must contribute to European production and quality jobs. Whether a public auction, direct State aid support or any another form of financial support, the beneficiary company will have to produce a substantial part of its output on European soil. We must of course also apply this logic to foreign direct investments.Ensuring that such social conditions are applied to public money is central to our campaign for good industrial jobs.”