The pandemic's economic toll was severe, with a 6.3% contraction in the EU economy in 2020, leading to significant turnover losses, job declines, and reduced investments. Despite some signs of recovery in 2021 and 2022, continued support remains critical, especially for sectors like tourism, textiles, and cultural industries, which face slower recoveries. The Commission's ecosystem-based approach identifies 14 industrial ecosystems, and tourism as one of them, each with unique needs and challenges. Smaller businesses, women, youth, and low-income workers were particularly affected, necessitating an inclusive recovery strategy that leverages the strengths of Europe's skilled and innovative workforce.

The update to the industrial strategy does not replace the original 2020 strategy but builds on it by addressing lessons learned from the crisis. It focuses on strengthening the Single Market's resilience, assessing the needs of different industrial ecosystems, and identifying strategic dependencies. The update responds to calls from various EU bodies to analyze the crisis's impact and propose solutions. Accompanying the update are three Staff Working Documents that provide detailed analyses of the Single Market's performance, strategic dependencies, and specific industrial sectors, such as the steel industry, to support the twin transition towards sustainability and competitiveness.

The crisis underscored the importance of maintaining the free movement of goods, services, and people within the Single Market. Uncoordinated national measures and border closures disrupted supply chains and economic activities, highlighting the need for a coordinated EU response. Initiatives like Green Lanes helped mitigate these disruptions, but the experience revealed the necessity of a more robust and integrated Single Market. The pandemic also raised awareness of the need to address strategic dependencies, particularly in essential products and inputs. The EU aims to develop targeted policies to reduce these dependencies while maintaining an open and competitive economy.

In conclusion, the updated industrial strategy aims to build on the resilience demonstrated during the crisis and accelerate the transitions towards a greener, more digital, and more resilient economy. The strategy emphasizes the importance of a well-functioning Single Market, inclusive recovery, and addressing strategic dependencies. By learning from the crisis and implementing targeted measures, the EU seeks to enhance its global competitiveness and ensure sustainable growth. The update reflects a commitment to international cooperation and readiness to address unfair practices, ensuring that the EU remains a strong and competitive player in the global market.

#Green transition #Adaptation strategies #Innovation in tourism #Resilience planning