EU Industrial Policy: Essentials and Prospects

Abstract

Faced with challenges such as the restructuring of the European security order, declining economic competitiveness, and insufficient innovation leadership, the EU has begun to actively implement industrial policies. It leverages government intervention measures to ensure the security of industrial and supply chains, focuses on developing key green and digital industries, and protects and develops the single market, thereby safeguarding economic security and advancing strategic autonomy. The EU’s industrial policies have achieved initial results, and it will rely more on industrial policy tools in the future. However, the EU’s industrial policies are confronted with controversies over legitimacy and effectiveness, and it still needs to address challenges such as multi-level governance, fiscal constraints, and insufficient innovation.​