The thrust of the strategy, the first update of EU thinking since 1998, is aimed at protecting woodland and improving potential for the wood-processing and paper industries.
It calls for an holistic approach, recognising the importance of biodiversity, forest based industries, bioenergy and climate change.
Dacian Ciolos, the European commissioner for agriculture and rural development, said the strategy takes forest management "out of the forest".
The CEPF, the confederation of European forest owners, said the strategy is highly welcomed after a long process and blocking at the highest level within the Commission. "The increasing pressure on the forest sector from energy, climate and environmental policies is no longer acceptable and requires a strong response," it said.
The Confederation of European Paper Industries said it would help co-ordinate strategy in the face of an increasing reliance on wood as a valuable raw material.
The Finnish Forest Industries Federation welcomed the strong co-operation between stakeholders and added that the EU’s own legislation would now be subject to an open assessment of its impact.
However, environmental groups led by FERN said the strategy had no teeth and any strategy should combine performance targets and an action plan.
The question of whether or not to set targets has been the subject of internal wrangling within the Commission for several months. Sources added this was linked to discussions over whether to put limits on the use of biomass from forests for energy, which is the subject of continuing argument within the Commission.