ABSTRACT

This chapter discusses the way in which the EU has regulated industrial integration. It describes the general industrial development under conditions of international integration. The development of the manufacturing industry is very important for the welfare of a nation, leading many governments in the past to pursue policies to foster industrial development. The industrial sector is at the heart of most integration schemes as these tend to begin with the integration of the market for manufactured goods. The EEC Treaty nowhere mentions an industrial policy in the sense of setting the course for and stimulating structural development of the manufacturing sector. Historically manufacturing industry grew out of craft, which in the beginning could hardly be separated from agriculture and trade. The domestic appliance industry in general and the refrigerator industry in particular show in an interesting way how market integration sharpened competition, forcing European manufacturers to respond with progressive international specialization.