A unified industrial strategy for the EU

Industrial policy recommendations to promote decarbonisation, competitiveness and cohesion in Europe

Policy Study

05/12/2024

This paper outlines three key aspects necessary for a successful EU industrial strategy that bridges multiple objectives and delivers for Europe.

Firstly, we emphasise the need to focus on strategic industries and key value chain segments. To address all the policy objectives of an EU industrial strategy, we propose different processes for identifying strategic industries for each objective. To prioritise the most strategic industries, we propose an approach that combines both quantitative data and qualitative expertise.

Secondly, the paper introduces a regional potential map. This tool can be used to conduct a multidimensional analysis of the long-term economic potential of all EU regions. In two case studies, we demonstrate the effectiveness of this approach by identifying high-potential regions for strategic industries. These examples show how unlocking the economic potential of EU regions can promote economic cohesion and facilitate a Just Transition for workers and regions.

Thirdly, we propose a multi-level governance model, combining centralised coordination within the Commission and active involvement from Member States and regions.

Through this paper, we aim to advance discussion on a cohesive EU industrial strategy that balances multiple policy objectives and benefits all Member States and regions.

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Friedrich-Ebert-Stiftung
ZOE Institute for Future-fit Economies
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