The Competitiveness Council (Internal market, Industry and Research), held in Brussels on May 28th 2009, emphasized the key role of industry for the European economy and the need to continue to react promptly to the present economic recession with a coherent and coordinated set of short-, medium- and long-term initiatives. Ministers also highlighted the fact that SMEs are the backbone of the European economy, and that they should be respected and considered when setting up framework conditions for European industry.

Ministers meeting for the Competitiveness Council in Brussels made a review of the measures put in place by the European Economic Recovery Plan and the measures agreed by the European Council on December 11th and 12th 2008, the implementation report of March 5th 2009, the Community part of which was agreed by the 2009 Spring European Council, and the 2009 Spring European Council conclusions, and highlighted the fact that temporary and targeted support measures by Member States must fully comply with the prevailing State aid rules and must not distort the internal market; a fully open and operational internal market is a prerequisite for the recovery and future growth of European industry.

Achieving a knowledge-based, safe and sustainable low-carbon and resource-efficient economy should be a guiding principle for European industrial policy, and therefore the Council invited the Commission to evaluate the results of the existing industrial policy initiatives and to continue the on-going dialogue with industry in order to formulate a long-term industrial policy for the European Union.

Ministers also welcomed the Communication from the Commission of November 20th 2008 entitled “The raw materials initiative – Meeting our critical needs for growth and jobs in Europe” and stressed the importance for the European Union to have an EU policy framework that facilitates trade and supply of critical raw materials.

The Council underlined that maintaining a competitive and strong industrial base in Europe requires favourable, stable and predictable framework conditions promoting excellence, innovation and sustainability, conditions in which businesses can operate and invest. Such conditions should be developed in close dialogue with stakeholders, in particular with the relevant industrial sectors.

Impact assessments should reflect the current economic situation and, where relevant, take into account specific situations existing in Member States in order to avoid undermining the global competitiveness of industry. Bearing in mind the "Think Small First" principle, special attention should be given to the impact of legislation on SMEs. Businesses should be given adequate time to adapt to new requirements before new legislation is introduced.

The Competitiveness Council pointed out that, with a view to preserving and enhancing the competitiveness of European industry and improving the conditions for investment in Europe, compliance with new requirements should not cause excessive costs to businesses in all policy areas. Otherwise, such costs could lead to "production leakage", notably in the present economic crisis.

Economic downturn can also be seen as an opportunity for early global leadership in new innovative solutions and for investing in the competitiveness of the European economy to facilitate its transition to a knowledge-based, safe and sustainable, renewable-energy focused, energy-efficient and low-carbon economy.