The event, organised by the EU Presidency, brings together representatives from the European Commission, the European Central bank, social partners as well as leaders from trade unions and employers organisations, is a key moment for shaping Europe’s macroeconomic policy. 

Industrial workers are increasingly anxious about the current geopolitical climate, which comes on top of deep concerns about the worsening state of European industry. A recent study commissioned by IAE shows that out of 20 key industrial sectors, only two: aerospace and shipbuilding, largely linked to defence, remain globally competitive. Investments are stalling and R&D is lagging behind, raising the risk of accelerated deindustrialisation, deeper external dependencies and the loss of millions of quality jobs.

Speaking at the Macroeconomic Dialogue, Isabelle Barthès industriAll Europe’s Deputy General Secretary set out industriAll Europe’s key messages.

“Workers are already feeling the impact of deindustrialisation. We receive daily reports of plant closures and restructuring” she started.

Since 2025, around 100,000 jobs have been lost in the automotive sector, while 28,000 chemicals workers risk losing their jobs due to plant closures. In total, up to 4.3 million industrial workers could be at risk as companies that have been holding on to skilled workers begin to adjust.

“The cost-of-living crisis continues to weigh on households with food and housing prices keep rising and now workers fear the return of inflation and in particular the rise in energy price. At the same time, many sectors are facing growing skills shortages, further intensified by demographic change and threatening to slow down both the green and digital transitions” she stressed.

Investment, industrial policy and fair conditions

Addressing these challenges requires massive investment and a proactive industrial policy. Europe needs around €1.2 trillion in additional investment every year to support strategic sectors, including green and digital technologies, energy infrastructure, public services and defence. Investment in people must also increase, particularly in upskilling and reskilling workers.

Initiatives promoting “Made in Europe” criteria can help strengthen European industry and create a business case for low-carbon products, especially given that public procurement represents around 15% of EU GDP. However, such initiatives must be backed by adequate investment. Said Isabelle Barthes.

Fiscal rules must therefore allow for stronger public and private investment, and the investment gap should also be addressed through common European financing tools such as common debt, building on the experience of NextGenerationEU. Macroeconomic policy must contribute to strategic autonomy.

The Industrial Accelerator Act (IAA) set up binding social conditionalities for Foreign Direct Investments (FDI), which is a welcome step in the right direction, but unfortunately not enough. 

"It’s important that public funding serves the public interest. Which is why social conditionalities should apply to all public support to ensure that investments deliver quality jobs, skills development and a just transition." Added Isabelle Barthès.

Finally, in times of extreme geopolitical turbulence, Europe must build resilience. We need to be strong internally in order to be strong externally to be able to rebuilt global governance and stability. This requires a push on investment, strategic IP and the supporting macro economic policy framework.

Shaping AI in the workplace

At the same time, the rapid development of artificial intelligence is raising new questions for the future of work. AI adoption in European manufacturing remains relatively low (below 13% in 2024) but companies are expected to accelerate its use in the coming years.

AI can bring productivity gains, but it will also reshape tasks, work organisation and job quality. Without proper safeguards, it could intensify work, lead to deskilling and affect entry-level opportunities for young workers.

“There is no technological determinism: the impact of AI will depend on how it is implemented. However, It is not a technology like any other technology, it also comes with high risks of discrimination and integrity. AI must be inclusive, fair and ethical, otherwise it will backfire. This is why Workers must be involved in shaping its introduction through strong social dialogue and collective bargaining”, concluded Isabelle Barthès.

Clear rules are needed to ensure human oversight, transparency of algorithms, the right to contest automated decisions and access to AI training. With the right framework, technological progress can support both industrial competitiveness and quality jobs.