European Economic and Social Committee CCMI/011 LeaderSHIP 2015 Brussels, 14 June 2004 SUPPLEMENTARY OPINION of the Consultative Commission on Industrial Change on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled LeaderSHIP 2015 - Defining the Future of the European Shipbuilding and Repair Industry Competitiveness through Excellence COM(2003) 717 final ____________ Rapporteur: Mr Dassis Co-rapporteur: Mr Gibellieri ____________ CCMI/011 - CESE 478/2004 fin FR-EL-EN/PM/WR/nm 2 Rue Ravenstein, B-1000 Brussels Tel. +32 (0)2 546 90 11 Fax +32 (0)2 513 48 93 Internet http://www.esc.eu.int EN -1On 27 January 2004, the Bureau of the European Economic and Social Committee, acting under the second paragraph of Rule 32 of its Rules of Procedure, decided to ask the Consultative Commission on Industrial Change to draw up a supplementary opinion to the opinion of the Section for the Single Market, Production and Consumption on the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions entitled LeaderSHIP 2015 - Defining the Future of the European Shipbuilding and Repair Industry – Competitiveness through Excellence COM(2003) 717 final. The Consultative Commission on Industrial Change adopted its supplementary opinion on 7 June 2004. The rapporteur was Mr Dassis and the co-rapporteur was Mr Gibellieri. 1. Introduction: the LeaderSHIP 2015 policy framework 1.1 In its communication on Industrial policy in an enlarged Europe1, the Commission laid down the horizontal policy measures needed to speed up the shift to a more competitive economy, particularly with a view to the enlargement of the Community. Knowledge, innovation and entrepreneurship are the basic building blocks of such a horizontal policy, which presupposes a specific sector-based approach based on close monitoring of the situation in each particular sector and on-going consultation with the parties concerned, in order to identify the most appropriate policy mix. 1.2 As part of its call for a comprehensive policy for European competitiveness, the European Council of 16 and 17 October 2003 urged that these policies should be pursued in such a way as to contribute to the aim of enhancing the competitiveness of industry and enterprises. Europe's leaders called upon the Council and the Commission to forge industrial policies capable of addressing the needs of specific industrial sectors, especially the manufacturing sector, in view of their essential contribution to economic growth. 1.3 The LeaderSHIP 2015 initiative goes back to the Council conclusions of 14 May 2001 where the Council called upon "the EU shipbuilding industry to continue improving its competitiveness". In March 2002 the industry presented the idea of such an initiative to the President of the Commission, Romano Prodi, who responded positively and requested the Commissioner responsible for enterprise, Erki Liikanen, to set up a working structure based on a detailed work plan. Against this backdrop, the High Level Advisory Group for LeaderSHIP 2015 was set up in January 2003 (see IP/03/120), and in October 2003 presented 30 specific recommendations in eight key areas for the competitiveness of the European shipbuilding and repair industry. 1 COM(2002) 714 final of 11 December 2002. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -21.4 LeaderSHIP 2015 embodies the main elements of the Lisbon Strategy and puts into practice the new comprehensive and coherent approach to the shipbuilding and repair industry2. It represents the culmination of the joint efforts of all the relevant players – the shipbuilding industry (CESA)3, the trade unions (EMF) and the EU – to ensure the future and competitiveness of this European industrial sector which is of strategic significance in a dynamic growth sector, but which is faced with a series of problems and distortions. 2. Gist of the Commission document 2.1 In its communication, the Commission stresses both the important strategic dimension of shipbuilding and shiprepair for Europe, which should also be recognised by the Member States, and the need for WTO rules to be obeyed, especially those relating to subsidies and countervailing measures, in order to create a level playing field for competition internationally. 2.2 The Commission's communication analyses and assesses the main issues addressed by the High Level Advisory Group, while policy actions are identified. These relate in particular to the key issues of an integrated approach to industrial and transport policies, increased knowledgeintensity, highly-qualified human resources, structural/organisational changes, technological and nontechnological innovation and intellectual property rights protection. 2.3 With its communication, the Commission translates the conclusions of the LeaderSHIP 2015 High Level Advisory Group into official EU policy, confirming that a horizontal policy must be supported by specific sectoral approaches. The recommendations of the High Level Advisory Group's report are integrated into the eight key areas/chapters with corresponding Commission positions/actions as follows: 1. 2. 3. 4. 5. 6. 7. 8. Establishing a level playing field in world shipbuilding Improving research, development and innovation investment Developing advanced financing and guarantee schemes Promoting safer and more environment-friendly ships A European approach to naval shipbuilding needs Protection of intellectual property rights Securing the access to a skilled workforce Building a sustainable industry structure. 2.4 The communication marks the start of a longer-term effort focusing on a vigorous strategy able to meet two key challenges: firstly, to ensure that by 2015, European shipbuilding and shiprepair plays a leading role in the sector at world level and, secondly, to guarantee the future 2 3 Similar to the G10 Medicines initiative for the pharmaceutical industry and the STAR 21 initiative for the aerospace industry. Committee of European Union Shipbuilders' Associations. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -3competitiveness of this major sector of European manufacturing industry, which also plays a significant role in some of the countries joining the EU. 2.5 The Commission states that it will continue to develop and implement its specific policy approach to the sector, in close cooperation with stakeholders and taking into account the responses received from Member States and other EU institutions to the issues raised. The purpose of the communication is to facilitate this process. 3. Issues facing the shipbuilding and shiprepair sector 3.1 International situation 3.1.1 Most industrialised and industrialising nations view the shipbuilding industry as a particularly sensitive and strategic sector in which there is strong state intervention. It develops advanced technologies providing valuable by-products for other sectors, it provides the basic means of transport for international trade, and makes a decisive contribution to defence and security by equipping navies with technologically advanced vessels. 3.1.2 Commercial shipbuilding and ship repairing differs significantly from other manufacturing industries, having been fully exposed early on to the dynamics of globalisation and the lack of effective anti-dumping principles in a genuinely global market, where shipyards have always vied with each other for contracts, both within and beyond the countries where they are based. The failure to implement anti-dumping rules means that the market is to a large extent shaped by uncontrolled distortions of competition. 3.1.3 As the OECD has noted, the world shipbuilding market – which, like the steel market, is particularly cyclical – is significantly distorted mainly as a result of over-capacity and the various ways in which governments support it. Current world production over-capacity is estimated to stand at some 15%, and without effective steps, this trend will continue, possibly rising to more than 30% over the next two years, according to OECD estimates4. 3.1.4 More specifically, strategic state investment in Asia has led to a discrepancy between supply and demand. If this does not stop soon, over-capacity for reasons of market strategy will continue to represent the industry's main problem, to the detriment of the open trading environment which is a feature of the world shipbuilding market and with severe repercussions for market prices. 3.1.5 According to the European Commission's most recent report5, the difficulties in world shipbuilding are manifested in the additional fall in orders for new vessels experienced in the leading shipbuilding regions in 2000. Prices in 2002 fell almost to 2000 levels. The reasons the report 4 5 Report: Meeting of the OECD Council at Ministerial Level, 2003 – Key Information, pp. 33-34. European Commission: Seventh Report on the situation in world shipbuilding, COM(2003) 232 final. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -4identifies for the market slow-down include in particular over-supply and the general world economic slow-down. 3.2 Effects on the EU shipbuilding and repair sector 3.2.1 The EU shipbuilding and repair industry is a sector of strategic significance, with an annual turnover of some €34 billion, 50% of which represents exports, a network of 9,000 companies, a workforce of more than 350,000, and a strong position on the world market for the construction and repair of sophisticated vessels. With 10% of turnover ploughed back into research, development, innovation and into the production of high-standard models, the European industry remains a driving force for excellence, and supplies 64% of the world market for sophisticated, high-speed vessels. Only Europe has such a dense network of shipyards, suppliers of shipping equipment, research centres, advanced technologies and mechanical engineering services. 3.2.2 In spite of its potential, however, this strategic sector is suffering the effects of an ongoing crisis as a result of which the European industry's overall market share has fallen to 7% from 13% in 2001 and 19% in 2000. Following a 20.7% decrease in the 2000-2001 period, world orders fell by 12.3% between 2001 and 2002. The fall was even greater for European shipyards, with a general decrease of 50% compared with 2002 and more than 70% against 2000. Most affected were container ships and cruise ships, although demand for crude oil and LNG (liquid natural gas) tankers was also lower. Demand has increased only in the product tanker segment and bulk carrier segment due to replacement needs stemming from new EU maritime safety legislation6. 3.2.3 The situation is illustrated by the fact that numerous shipyards have closed in Germany, Italy, France, the Netherlands, Sweden, Norway, Poland and Spain and in other countries with mass lay-offs of workers. Two thirds of shipyards have disappeared, the surviving ones are working under capacity7, and shipyard employment has fallen from around 460,000 in 1975 to approximately 100,000 today for the construction of new vessels and repairs (the corresponding figures for the EU 15 are 350,000 and 85,000 respectively). 3.2.4 As enlargement approaches, the effects of the crisis on the shipbuilding and repair sector should be appraised with regard to both the new Member States and the candidate countries. Overall, it is expected that EU accession will lead to a reduction in the competitiveness of the shipbuilding industry in the new countries, on account of increased production costs, real appreciation pressure and the need to adjust to the environmental and social acquis. A rise in labour costs is expected due to the progressive rise of real wages and implementation of new work safety regulations. The increase in production costs as a result of both higher labour costs and interest payments on additional loans to finance the investments necessary in order to implement the environmental acquis 6 7 European Commission: Seventh Report on the situation in world shipbuilding, COM(2003) 232 final. European Parliament, Committee on Industry, External Trade, Research and Energy: Report on the sixth report from the Commission to the Council on the situation in world shipbuilding (COM(2002) 622 – 2002/2062 (INI)) (A5-0130/2003). CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -5could reach 3-4% in Poland – which has world standing in the industry – , 4.7% in Estonia, and 2-4% in the other three countries. This effect will however be spread over time8. 4. Competition, trade and policy 4.1 European shipbuilding policy in the past mainly involved state subsidies, without an effective industrial approach. However, the emphasis is now more on trade policy and on competitiveness. As tensions concerning world trade issues increase, efforts are being intensified to tackle competition questions effectively, in terms of both policy and substance. These efforts centre on achieving an internationally applicable agreement which would guarantee a level playing field in the global shipbuilding sector. The EESC takes the view that the EU and the European Commission are giving the right priority to this extremely complex question, which is of decisive importance for the survival of the sector. 4.2 Because of its specific characteristics, it is difficult to apply the existing multilateral trade rules to the shipbuilding sector, unlike most manufacturing sectors which are sufficiently covered. This is essentially the only industrial sector which lacks this effective form of protection against unfair trade practices. 4.3 Apart from the fact that the market falls far short of operating optimally, European shipyards are threatened by unfair pricing practices and subsidies of certain competitors. Indeed, whereas in the EU, where the maximum authorised threshold for subsidies has been gradually lowered since 1987, a strict discipline on State subsidies has been in force, at international level there is no specific discipline despite the efforts made to achieve one. 4.4 More specifically as stated in all seven Commission reports on the state of global 9 shipbuilding , South Korea continues: – – – 8 9 10 to offer below-cost prices which do not even cover the production costs, giving rise to negative profit margins fluctuating between 20% and 40%; to grant its shipbuilding sector non-transparent direct and indirect subsidies10; to maintain bankrupt shipyards in full operation, in breach of the undertakings given by South Korea in order to receive aid from the International Monetary Fund. The Shipbuilding and Ship Repair Sectors in the candidate countries: Poland, Estonia, the Czech Republic, Hungary and Slovenia. Final Report prepared by NOBE for the Enterprise DG of the European Commission in the framework of contract no. PRS/98/501703 (or PSE/99/502333). In accordance with Council Regulation No. 1540/98 on the establishment of strict rules on subsidies to shipbuilding, the Commission submits reports on the state of world shipbuilding which analyse developments on the world shipbuilding market and assess results of the measures taken. For example, in April 2002 the South Korean government passed a special law creating the first ship investment fund, also open to foreign investment, and combined with tax deductions for profits derived from this fund. Moreover, at present Korea is considering the possibility of passing in May 2004 a law exempting such capital investment from the tax on company income. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -64.5 Ultimately, it is clear that the Republic of Korea does not intend to comply with the recommendations on adapting its production capacity to international demand, since it continues to set up production subsidy arrangements, thus strengthening the impression that it wishes to continue its own dumping practices at least in the medium term. In parallel, it should be emphasised that since 1998 it has systematically extended unfair competition practices to new types of ship, from container ships to all other categories, including cruise liners. 4.6 In the People's Republic of China, shipbuilding is characterised in general by far lower labour costs compared with countries with a developed shipbuilding industry. However, it encounters problems of organisation, meeting delivery dates and limited access to the market. Nonetheless, in recent years the market share held by the Chinese industry has seen a gradual increase: in particular, in 2002 the volume of new orders showed a significant increase (22.9%), while plans for extending shipyards in China are being promoted. Once it has resolved its problems, the People's Republic of China could constitute a threat for the European industry. It therefore seems essential to start a bilateral dialogue with China under the aegis of the OECD so as to avoid the development of a situation similar to that of South Korea. 4.7 In the face of the continuing competitive pressure, and the demands from the sector which had the support of the European Parliament, the Council decided in July 2002 on ways of combating distortions of competition in the shipbuilding market. To that end it adopted a dual policy: on the one hand it gave Korea a further opportunity to conclude a bilateral agreement by 30 September 2002, while on the other the ministers agreed that failure to reach an agreement would automatically trigger a complaint to the WTO and the approval – through the so-called temporary defence mechanism – of direct subsidies of up to 6% for the EU shipbuilding sector to build up to three types of ship11. 4.8 The bilateral negotiations with Korea ended in October 2002 with no sign of convergence between the positions. The Korean side did not confirm the principles established earlier to guarantee in particular that Korean shipyards would offer prices which reflected all cost factors. Moreover, in January 2004 Korea appealed to the WTO against the EU, calling for a committee of enquiry to be set up. 4.9 On 21 October 2002 the EU presented to the WTO a request for settlement of the dispute, while the WTO panel examining the EU's complaint against Korea began its work only in December 2003. The final report will not be ready until August 2004: if, as probable, one of the parties appeals, the final settlement of the dispute could not be expected before 2005. 4.10 Under Council Regulation No. 1177/2002, the EU set up the so-called temporary defence mechanism, making it possible to approve direct subsidies for shipbuilding. On 11 March 2004, through the new Regulation No. 6532, the temporary defence measures were extended until 11 Container ships, certain types of tanker and ships for transporting liquefied natural gas. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -731 March 2005 for the use of limited operating aid to certain segments of the shipbuilding industry subject to unfair competition from the Republic of Korea. 4.11 Efforts are also being made in the OECD context, despite the fact that the OECD agreement on shipbuilding of 1994, which provided for a series of sanctions against subsidies and other practices, has never come into force. In 2002 the OECD Council set up a negotiating group in addition to the permanent Working Party on Shipbuilding, with the task of reaching a binding international agreement by the end of 2005 to create fair competition conditions on a global scale. 4.12 The OECD takes the view that the Council's Working Party on shipbuilding is the only international body capable of influencing and guiding national policies with a view to limiting and gradually eliminating the state subsidies which have distorted competition. However, the progress made so far has been rather slow, and only the future will show to what extent this approach can still be successful. 5. Specific aspects 5.1 The repair and conversion sector 5.1.1 The EESC emphasises the importance of the ship repair and conversion sector in Europe, both for employment and for strategic reasons, particularly considering the continuing downward trend in orders for new ships. The industry's assessment is that the sector has become in a way, at least in political terms, a kind of "invisible sector", and that this situation must end. 5.1.2 A sector with an annual turnover of about €2.7 billion, 400 shipyards and more than 40,000 employees, can certainly not be ignored12. At all events, it is essential to stress that, in the present crisis, it seems in general that the repair and conversion market has stood up well, with an upward trend throughout 2002. The same trend was also recorded in 2003. However, while the volume of orders is considerable, the prices remain at the lowest levels because of fierce international competition. 5.1.3 The industry, recognising the need to support the repair and conversion branches, made an effort from 2002 onwards to submit proposals to the European Commission in the context of the INTERMAR project (ECFP5) on two specialised programmes with a clear reference to the sector. INTERMAR promotes the integration of computer systems in repair yards with the corresponding systems of the suppliers and contractors belonging to the same industrial cluster. 5.1.4 The EESC takes the view that, taking account of the coherent and comprehensive long-term character of LeaderSHIP 2015, it will be necessary, in cooperation with all the interested parties, to promote and support initiatives designed to strengthen and modernise the ship repair and conversion sector in Europe and to improve its recognisability. The emphasis placed on 12 AWES – The Association of European Shipbuilders and Shiprepairers: Annual Report – 2002-2003, pp. 38-40. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -8environmental protection and on the themes of research, development and innovation must also be adequately reflected in the aforementioned initiatives. 5.2 Research, development and innovation (RDI) 5.2.1 The EESC agrees with the Commission's assessment that the competitiveness of the shipbuilding sector is closely linked to the European policy of research, development and innovation (RDI). The latter must include not only enterprises, but also competent bodies at European and national levels: the objective is to achieve coordination of the various activities designed to optimise the efficiency of the economic resources, so as to avoid repetition and overlapping. Investment in RDI must be concentrated equally on the development of new products and on production methods. 5.2.2 LeaderSHIP 2015 rightly recognises that maximising Europe’s technological advantage in the shipbuilding sector presupposes a decisive impetus for RDI. Consequently, Community research programmes must provide structured support to the relevant efforts of the European shipbuilding industry. Essentially, this support must aim at creating a critical mass of research activities so as to deal in the long term with problems such as training, the environment, safety and competitiveness, taking into account also the wider perspectives of trade, the environment and regulation. A good example of this approach is that of InterSHIP, which is the largest-scale integrated project supported by the Community framework programme pertaining to sustainable surface transport. 5.2.3 It will also be necessary to develop and apply advanced solutions for construction materials, systems and technology, incorporating the research, development and innovation activities of the shipbuilding sector into those already established for related sectors (e.g. the technological platform for steel), in the context of present and future European technological platforms. 5.2.4 Particularly for cruise vessels, research and innovation are likely to play an important role as regards materials (for example, aluminium, composite materials for partitions, etc. to achieve a significant reduction in the weight of multi-deck ships). Also worthy of mention is the need to rationalise and improve construction techniques through the use of micro-components, enabling high levels of automation, and of laser welding techniques to reduce the need for further finishing. 5.2.5 For naval vessels, all systems concerned with the passive protection of ships constitute an important field of research and innovation, in which the emphasis is placed on composite materials, ballistic plates and stealthing methods for ships and submarines. 5.3 Employment and human resources 5.3.1 The EESC points out that "securing the access to a skilled workforce" quite rightly constitutes one of the eight key areas of LeaderSHIP 2015, and it assesses as appropriate and useful the recommendations made with regard to skills, training, exchange of know-how and strategies designed to attract a skilled workforce into the industry. The concept of "competitiveness through CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... -9excellence" suggests the right approach; the concept of excellence, however, is not confined to products and technology, but also means quality employment, increased skills, specialisation and incentives for the labour force. 5.3.2 The employment issue arising from the crisis affecting the shipbuilding sector is complex and cannot be tackled merely by attracting highly skilled staff into the industry. One of the more adverse effects of the crisis in shipbuilding – which has very broad social repercussions – is the effect on employment, manifested in the dramatic fall in the number of workers employed in the EU shipyards (see table below). In this perspective, and given the wide scope of the project, the EESC takes the view that the measures covered by the seventh key area of LeaderSHIP 2015 should be the subject of wider-ranging work, in cooperation with and involving all those concerned and particularly representatives of the workers, who are directly affected. EMPLOYMENT IN THE MEMBER COUNTRIES OF THE AWES (Association of European Shipbuilders and Shiprepairers) (1975-2002) * ** Including new merchant ships and off-shore vessels. Only AWES member shipyards. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... - 10 5.3.3 In this context, the EESC expresses its satisfaction at the establishment of a sectoral social dialogue procedure, in the context of which employers and employees can jointly assess the real nature of the problems and seek the most suitable solutions. It also agrees with the Commission's view that such a dialogue must be the focal point for activities in this field: a specific platform at EU level to put into practice the recommendations of LeaderSHIP 2015 according to regional requirements, with the aim of making the industry competitive and vital, since this is the basic prerequisite for employment purposes. 5.3.4 The EESC points out that efforts to ensure the competitiveness and vitality of the shipbuilding and ship-repair industry in the EU cannot be allowed to lead to a weakening of the European social acquis. The social acquis should be safeguarded, and the aim of increasing competitiveness in Europe should not be pursued at the expense of wage levels13. Finally, international organisations, and the WTO in particular, should regard the failure to apply the ILO's international labour agreements on the fundamental rights of workers as an unfair trade practice. 5.4 Naval shipbuilding: a European approach 5.4.1 Naval shipbuilding constitutes a special sector of the European shipbuilding industry, given its major technological advantage in comparison with the building of merchant ships. The network of suppliers plays a very important role and the market operates in two different environments – the export market and the internal market. So far naval shipbuilding has avoided the unfair international competition which has systematically affected the merchant shipping sector, although fierce competition exists among the European shipbuilders. 5.4.2 Given the strategic and defence role played by naval shipbuilding, the EESC agrees on the need to give immediate attention to three key aspects: industrial cooperation between shipyards and suppliers, access to foreign markets and consolidation of the industry. 5.4.3 The EESC regards as particularly relevant the Commission's comments that European naval shipbuilding – in comparison with other sectors of the defence industry – is dominated by the state-owned sector, with national companies. Without greater cooperation and consolidation, European operators run the risk of being relegated to a marginal role in global terms, thereby limiting the future defence choices of the EU. It is essential to set up strong, integrated European bodies with the task of strengthening Europe's competitiveness on the one hand, and its dominant position in the international market for warships on the other. 5.4.4 The Member States and their navies must therefore agree on a minimum set of requirements for firms, and on the harmonisation of procedures for the allocation of public contracts, in accordance with the Commission Communication on "European Defence – Industrial and Market Issues" of March 2003. 13 In South Korea, the average wage of workers in the sector dropped from US$ 7.5 per hour in 1996 to US$ 4.3 in 1998. CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... - 11 5.4.5 The EESC agrees with the Commission's position on the matter, and considers it necessary to accelerate the procedures to establish a common market in defence equipment, including the setting-up of a joint service for the allocation of public contracts. More particularly, the setting-up (in January 2004) of the European Defence Agency, in which all Member States will be able to take part, will make a decisive contribution to the development of defence capabilities, research, market activities and defence equipment. Among other things, the Agency will have the task of strengthening the industrial and technological base of European defence and of creating a competitive European market in defence equipment through the promotion of European cooperation programmes. 6. Comments and recommendations 6.1 The EESC welcomes the LeaderSHIP 2015 initiative and its new approach, and advocates the adoption of the recommendations the Commission put forward in its communication LeaderSHIP 2015: defining the future of the European shipbuilding and repair industry – competitiveness through excellence. Indeed, this document seeks to define a strategy for the development and strengthening of European competitiveness, as well as for making full use of the EU's technological advantage in the shipbuilding sector by promoting innovation and research. 6.2 The EESC particularly applauds the approach to dialogue and cooperation contained in LeaderSHIP 2015, which is the result of joint efforts by all the interested parties: representatives of industry and trade unions, Members of the European Parliament and European Commissioners, whose policy is to determine the framework conditions for the EU shipbuilding and ship-repair sector. This approach represents the coherent and dynamic expression of a modern industrial policy based on a wide-ranging project which proposes the creation of new, effective mechanisms, thus envisaging the instruments for developing a strategic sector which could also become a model for other sectors. 6.3 Constructive dialogue and cooperation among all the interested parties have ensured a correct analysis and assessment of the sector's problems, thus defining the framework for the necessary actions. The EESC, however, attaches great importance to the subsequent implementing phase, which represents the real key to the success of the initiative. Indeed, LeaderSHIP 2015 is not just an ambitious programme, but a complex and demanding one, the success of which presupposes consistent and rapid implementation. 6.4 The EESC therefore regards it as necessary for all participants, including the Member States, to commit themselves to, and undertake, decisive coordinated action with a view, at a later stage, to revising or drawing up specific policies. Thus, in each of the eight key areas, creating work programmes ensuring participation, transparency and an effective follow-up will be indispensable. 6.5 With a view to effective monitoring of implementation, a European observatory open to the participation of all those who contributed to the definition of LeaderSHIP 2015 would serve as a useful tool. In particular, the participation of workers' representatives is of decisive importance to the success of monitoring procedures and the specialisation of policies. In this respect it is also CESE 478/2004 fin FR-EL-EN/PM/WR/nm .../... - 12 advisable to draw on the activities and experiences of the Marine Industries Forum (MIF)14 mainly with the objective of fully exploiting synergy and addressing the problems common to the sectors and sub-sectors of the "maritime cluster", which is characterised by a high level of interaction. 6.6 The EESC regards as particularly useful the call addressed by the European Parliament to the Commission and the Member States, with a view to encouraging industrial cooperation, to propose and approve the establishment of a European shipbuilding consortium which, as has been done in other sectors, would ensure production levels, quality standards and levels of technological development meeting the environmental and socio-economic requirements in this sector15. 6.7 Moreover, to the extent that prices in the shipbuilding and ship-repair sector are expressed in US dollars, the EESC calls upon the Commission to consider the possibility of stabilising prices on the international markets through Community support measures. 6.8 In the EESC's view it is necessary to acknowledge and assess the EU enlargement dimension, with the aim of assessing and including in the long-term policy of LeaderSHIP 2015 the effects of the crisis and the changes in the shipbuilding and ship-repair sector in the new Member States and candidate countries. 6.9 At all events, it takes the view that the European Commission should continue its dual policy based on the one hand on use of the temporary defence mechanism, and on the other on the efforts deployed at WTO and OECD levels. In this it needs to cooperate effectively with all the states affected by the shipbuilding crisis in order to stand up to competitive pressures, with the ultimate aim of laying down conditions of fair competition on a global scale. Brussels, 7 June 2004. The President of the Consultative Committee on Industrial Change The Secretary-General of the European Economic and Social Committee Josly Piette Patrick Venturini _____________ 14 15 The Marine Industries Forum (MIF) was relaunched and restructured in June 2000 in line with a strategy proposed by the sector, to serve as a single interface between the Commission and the industry, and particularly SMEs. One of its three specialised working groups concerns shipbuilding. The primary objective of the MIF is to tackle matters of common interest in all sectors of the industry and encourage their competitiveness through cooperation. European Parliament, Committee on industry, external trade, research and energy: Report on the Sixth report from the Commission to the Council on the situation in world shipbuilding (COM(2002) 622 final – 2003/2062 (INI)). CESE 478/2004 fin FR-EL-EN/PM/WR/nm