In the field of innovation, it has to reduce the gap between the research community and the market

In its latest bulletin of economic and labour situation the Spanish Confederation of business organizations of Metal (Confemetal) includes a report on the risk of relocation existing in Spain, which is very sensitive a sector Iindustrial metal, particularly in segments like automobile and its auxiliary industry or industries as electronics and appliances.

The problem of relocation - according to the report - which is a symptom of the lack of competitiveness, yet is not irreversible in the Spanish economy, in general, and in the metal sector, in particular. However, some data seem to start to define a trend, not addressed quickly and effectively, could consolidate and promote an inertia difficult to stop without drastic and costly, economically and socially.

According to Confemetal, counteract the risk of relocation is as simple and complex at the same time as making the manufacturing industry in general and the metal sector in particular can remain attractive to work and invest in them. To this end it is necessary to promote the competitiveness of enterprises with recipes such as the promotion of the r & d, regulatory and fiscal incentive framework of innovation, entrepreneurship and investment, training systems capable of responding to the challenges that the future raises to the sector, and a working framework for improving productivity.

In the field of innovation, it has to reduce the gap between the research community and the market, dedicate funding to applied research, and get that future research programmes - European and national - take into account not only the financing of research but also projects. The results of the research must be exploited better, especially by SMEs, facilitating its implementation funding pilot projects and the start of the industrial production.

However the report notes that what really decides the place of investment and therefore the success or failure of a sector in a country, are conditions framework in which businesses operate. In that regard, the current framework - European, national, regional and even local - regulator of industrial activity not encourages investment, with a policy set that begins to require a review

Before adding more legislation to the regulation of an activity, public authorities should ensure that it is really necessary and applicable, seriously consult with those affected and evaluate their impact. In addition, the various administrations not must add more requirements to higher courts rules, not to fall into the nonsense of create barriers at national or regional level while it seeks to harmonize legislation at EU level. Coordination between administrations must avoid regulatory differences to break the unity of market, hampering the activity of enterprises and reducing their competitiveness.

The report is cited as an example of this perverse effect co-ordination of environmental legislation of the European Union which has been establishing minimum, to which national Governments, regional or local and Autonomic add more requirements, to reduce the benefits of the internal marketthey increase the prices of the products and cause a dangerous distrust of environmental regulations.

Confemetal said taxation as one of the factors that lead to relocation in Spain, where the average rate of tax on the income of companies from 35 per cent, only surpassed in the EU by Germany and France which not only harms the attraction of investment to our country but it also causes the output of enterprises in search of more favourable conditions. Facilities for the offsetting of losses and a greater degree of tax harmonisation would favour start-ups, SMEs and high risk businesses - linked companies generally to the innovation-which have, currently, in the fiscal framework a desincentivador element of their development.

Also, to offer competitive, the labour market must be flexible, mobility - geographical and functional - and respond to the growing demand - for enterprises and workers-of new forms of recruitment. At the same time, wage costs are damaging the competitiveness and the challenge of the social partners is to improve productivity without compromising the sustainability of our social model or in response to competition from emerging economies simply through wage competitiveness.

Lastly, Confemetal said training as key to the relocation. A good skill to cope with globalization and technological change requires an efficient education system, with a University, vocational and occupational training of high quality and, above all, with a system of continuing training able to facilitate safe and enriching works, personally and collectively, over a working lifetime.

At the same time, the report highlights the need to take greater advantage of the experience and skills of qualified personnel and proposed doing so abandon the tendency towards working hours shorter and increasingly premature retirement. Employers and employees should accept longer working lives, and Governments should reconsider the existing provisions that encourage the early departure from the labour market and replace them with others as flexible retirement arrangements.