Progressive foundations for modern European industrial policy

Policy Brief

The return of industrial policy creates an opportunity for a substantial revamp of the European economy and governance. Progressive forces need to take this window of opportunity to propose and shape industrial policy that would serve the goal of well-being for everyone. 

A modern, progressive European industrial policy should be based on a developmental-state approach. This means that a state should shape the vision of the industrial strategy and steer its implementation while developing feedback loops and cooperative practices with businesses and a broader set of stakeholders. This vision breaks with the neo-liberal policies of the recent past, advocating for a stronger steering role of the state. But at the same time, it does not suggest a return to the old-style dirigiste model of state intervention.

In this policy brief, we discuss the theoretical foundations for modern industrial policy and see what it takes to implement this vision in the EU. We suggest some elements that such a policy should involve and review how much the existing European policies already incorporate them.