A Mission for Industrial Competitiveness for Europe’s Food and Drink Sector

Ahead of the European Parliament hearings of the Commissioners-Designate of the European Commission, FoodDrinkEurope has written the below open letter to Commissioner-Designate Stéphane Séjourné.

Dear Commissioner-designate Séjourné,

Over the past months, as discussions on the future political priorities of the 10th EU legislature developed, few key words were able to catalyse the support of many different political views and interests like “Competitiveness”, “Single Market” and “Industrial Strategy”. These priorities are timely, as Europe faces mounting pressures in the global marketplace, with both the U.S. and major economies in Asia intensifying their support for industrial sectors critical to economic resilience and growth.

To sustain Europe’s leadership role, European policymakers must urgently prioritise competitiveness. This holds especially true for the food and drink industry, Europe’s largest manufacturing sector and a key pillar of both economic growth and sustainability. With nearly 300,000 businesses — 99% of which are SMEs — employing 4.6 million people, largely in rural areas, the sector is vital for Europe’s socio-economic fabric.

Europe’s food and drink industry not only adds €230 billion in value but also supports the agricultural sector by sourcing 70% of all EU farm produce. As a global leader, Europe exports a diverse range of products worldwide, yet faces increasing competition as the U.S. and Asia implement aggressive industrial policies aimed at scaling their own food and drink sectors. Europe’s industry thus needs reinforced support to remain competitive on the global stage.

Feeding Europe’s economy over the next 5 years

The resilience of the agri-food chain in recent years highlights its stability and adaptability in challenging times. However, considering global competition and challenges ahead, the industry needs the right support for equipping the sector in view of feeding people with quality and affordable food and drink, while being more sustainable. This is essential for a stable and peaceful Europe.

As the incoming Executive Vice-President for Prosperity and Industrial Strategy, your mandate will focus on strengthening the competitiveness of European industries. This mission is timely, as frequent crises and shifting geopolitical tensions threaten economic stability. Coordinated action with EU Commissioners, national governments, and industry stakeholders will be critical in transforming these challenges into actionable policies that support EU industry competitiveness.

Strengthening the Competitiveness of the Food and Drink Industry

In alignment with the new Industrial Strategy that President von der Leyen has asked you to advance, we urge support for the EU food and drink sector in the following areas:

• Elevate Sectoral Competitiveness: The EU food and drink industry must be recognised as strategically vital to Europe’s economy and security. Policies that prioritise sustainable growth, foster sector-specific innovation, and strengthen market resilience are essential to maintaining this sector’s global standing. In contrast to the U.S., where government incentives actively drive industry expansion, and Asia, where rapid innovation fuels competitiveness, Europe must bolster its own industries through similarly ambitious frameworks that enhance global competitiveness.
• Develop an Investment Strategy for Food and Drink: Formulate an investment strategy specifically for food and drink to address funding gaps and attract both public and private capital, leveraging support from institutions such as the European Investment Bank (EIB). We call for a dedicated EU Food Investment and Resilience Plan as the central component of the Vision for Agriculture and Food, integrating relevant elements of the new European Industrial Deal. This strategy should leverage the support of institutions such as the European Investment Bank (EIB) and align with initiatives under the Clean Industrial Deal, Net Zero Industry Act, and European Competitiveness Fund. These frameworks should facilitate access to the technologies and innovations required to transform the food and drink sector and drive Europe’s economic and environmental transitions.
• Conduct a Comprehensive Competitiveness Review: The food and drink sector would benefit from regular evaluations of how both new and existing regulations impact its competitiveness, with particular focus on SMEs. Reducing excessive regulatory, administrative, and reporting burdens is critical for these businesses. We are eager to hear about your concrete ideas with regard to “improving access to finance, simplifying the regulatory environment, and promoting innovation for SMEs”, [...] “exploring the feasibility of a dedicated SME passport to reduce administrative burden and costs”.
• Remove Single Market Barriers and Reduce Fragmentation: We encourage concerted action to dismantle barriers within the Single Market that drive up business costs, as removing these obstacles will promote cross-border investment and innovation. Lowering operational costs will empower EU producers to compete more effectively on a global scale. We look forward to your work on the Single Market Barriers Prevention Act as an essential step in this direction.

We are eager to collaborate with you on these initiatives to fortify Europe’s food and drink sector. Together, we can achieve the dual goals of enhancing sustainability and competitiveness while furthering the broader objectives of the European Union.