The Cefic report underscores the crucial role of the European chemical industry in the continent's economy and innovation ecosystem. Representing 5-7% of EU manufacturing turnover, the sector comprises approximately 31 000 companies, 97% of which are SMEs, and employs over 1.2 million people directly. Chemicals are integral to strategic sectors such as pharmaceuticals, electronics, and defence, contributing significantly to Europe's trade balance with a surplus of EUR 35 billion in 2023. Furthermore, Europe ranks second globally in chemical patents, reflecting the industry's role in driving innovation. Chemicals are also crucial in advancing Europe's climate neutrality and circular economy goals through sustainable materials, innovative recycling processes, and carbon footprint reduction. 

Currently, the industry faces several challenges, including high energy costs, regulatory burdens, and increased global competition. To address these, the report identifies seven key action levers: 

1. Develop a clear industrial policy: advocate for a strategic plan that balances competitiveness, innovation, and resilience.
2. Reduce administrative burdens: simplify regulations and accelerate permitting to encourage investment.
3. Restore energy competitiveness: invest in affordable, low-carbon energy infrastructure and revise policies to support stable baseload power.
4. Finance transition and innovation: increase public funding for low-carbon technologies and streamline State Aid frameworks.
5. Foster a level playing field: strengthen global trade agreements and ensure consistent application of Green Deal regulations.
6. Support strategic autonomy: secure critical raw materials and promote domestic recycling.
7. Boost demand for sustainable products: encourage market uptake of net-zero and circular products through labelling, standards, and public procurement. 

These actions aim to restore Europe’s competitiveness, ensuring the chemical industry continues to develop while supporting broader environmental and economic goals.