ABSTRACT
After decades of marginalisation, industrial policy is back on the political agenda. While this shift in economic policy discourse is to be welcomed, from a progressive economic and political point of view, it is very important to carefully think about the why, how, and for whom of industrial policy. In this chapter, these questions are addressed with respect to the industrial policy of the European Union. Upon the basis of a review of recent EU industrial policy initiatives, various institutional deficits are identified. In addition to an unfavourable macroeconomic policy framework, EU industrial policy currently suffers from institutional fragmentation, a lack of strategic coherence, and weak directionality. Given recent geopolitical challenges, the initial focus on the green transformation has given way to an approach focused on promoting economic security and competitiveness. This securitisation is likely to come at the expense of both social security and environmental sustainability. Instead, under the rubric of defensive regionalism, the chapter argues for a refoundation of EU industrial policy based on a socially inclusive and participatory approach that promotes economic resilience and autonomy, accelerates the green transformation and guides the digital transformation to the benefit of workers and citizens in the EU.
