Towards a progressive industrial policy for the Twin Transformation in the European Union: synthesis report
2025
73 p.
industrial policy ; economic model ; just transition ; digitalisation
OFSE Research Report
21/2025
Industrial economics
https://doi.org/10.60637/2025-rr21
English
Bibliogr.;Charts
"After decades of marginalization, industrial policy (IP) is back on the political agenda. While this shift in economic policy discourse in principle is to be welcomed, from a worker-oriented economic and political point of view, it is very important to carefully think about the why, how and for whom of industrial policy. What are the motivations for IP, which objectives shall be achieved, who should be the beneficiaries of IP, who shall sit at the table when it comes to taking decisions, and finally, who will be responsible for implementation? Upon the basis of an in-depth analysis of recent EU industrial policy for the Twin Transformation, the report outlines a policy agenda for the next five years that aims to accelerate an inclusive as well as effective Twin Transformation agenda."
Digital
Table of contents:
ABBREVIATIONS
LIST OF FIGURES AND TABLES
EXECUTIVE SUMMARY
ZUSAMMENFASSUNG
1. INTRODUCTION
1 2. THE THEORETICAL CASE FOR INDUSTRIAL POLICY
2.1. Defining industrial policy
2.2. Motivating industrial policy
2.3. Implementing successful industrial policy
3. KEY CHARACTERISTICS OF THE EU POLITICAL ECONOMY
3.1. The EU's growth model
3.2. External economic dependencies of the EU economy
4. ASSESSING EU INDUSTRIAL POLICY INITIATIVES FOR THE TWIN TRANSFORMATION
4.1. Industrial Policy in the aftermath of the Eurozone crisis
4.2. The European Green Deal
4.3. Sources of funding for the Twin Transformation
4.4. Conclusions
5. KEY DEFICITS OF AND CHALLENGES FOR EU INDUSTRIAL POLICY
5.1. The lack of a coherent definition and of strategic outlook
5.2. The legitimacy problems of the current approach
5.3. The governance deficits of the current IP approach
5.4. The counter-productive macrofinancial framework
6. A PROGRESSIVE INDUSTRIAL POLICY AGENDA FOR THE TWIN TRANSFORMATION
7. REFERENCES
The ETUI is co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the ETUI.