16 March 2009 10:52 [Source: ICIS news]
LONDON (ICIS news)--An alliance representing Europe’s manufacturing industries on Monday asked the EU for more funding during the financial crisis to help maintain competitiveness with other regions.
“Use should be made of European funds such as the EU Social Fund and the EU Globalisation Fund for easing the situation in the manufacturing sector. Action should be immediately taken to improve the accessibility of funding,” said the alliance report, which was sent to Commission President Jose Manuel Barroso.
“Companies and customers must have access to capital and to credit insurance, the lack of which is paralysing the export capacity of certain sectors,” it added.
The economic crisis has had an unprecedented impact on Europe's chemicals industry, particularly hitting base chemicals, polymers and specialty chemicals due to collapsed demand from end-users such as automotives and construction, Cefic said.
“Given the scale of the crisis the European economy is facing, we must ensure now... that the short-term difficulties will be overcome and that the necessary investments can be made to secure the future of our industry,” Cefic said in the report.
Cefic called for measures such as accelerated payment of VAT taxes and tax credits for R&D.
Manufacturing output in the 27-member EU dropped for eight consecutive months to the end of 2008, compared to the corresponding months of 2007, with the index dropping an estimated 13% in December, according to Eurostat.
The production of chemicals dropped by over 15% year on year in the final month of 2008 as demand plummeted due to struggling end-user markets.
Cefic also asked for a reduction of the fees for
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