Raw Materials Supply Issues In The European Union

The EUs? manufacturing and construction industries are vital to Europe?s economy. They rely heavily on a steady supply of materials which meet appropriate quality criteria and are available at a competitive price. The steadily rising global demand for (non-energy) raw materials due to increasing consumption in upcoming economies such as China, India and Brazil, is in some cases leading to rapid price increases, but also supply disruptions which affect the European industry chain. These considerations are at the basis of new policy initiatives that are being prepared by Enterprise and Industry Directorate-General in relation to the competitiveness of the European metals industry. Over the last year the raw materials supply issue has increasingly become the topic of de-bate among various stakeholders. In July 2006 the European Economic and Social Committee adopted an opinion on risks and problems associated with the supply of raw materials to European industry. It is therefore important to identify and analyse the future needs for European industry, the possible constraints and impacts on its competitiveness. The raw materials supply issue should also be looked at from the view-point of the EU extractive industry, which plays an important role in supplying raw materials to the downstream industries and which faces very specific challenges. Within the Enterprise and Industry Directorate-General the different factors that influence the competitiveness of the non-energy extractive industry are being assessed, in order to help identify policies and actions which could contribute to and enhance the competitiveness of the industry.