The policy space for a novel industrial policy in Europe

Abstract

Abstract This article examines the main actions in the field of industrial, investment and innovation policy currently carried out at the European level, focusing on the changes in Europe’s manufacturing production since the 2008 crisis. Current actions by the EU in this field are assessed—including funding programs, fiscal rules, competition policy, the Juncker Plan-InvestEU initiative and the activities of European Investment Bank. The present and potential space for such initiatives is examined in the light of the growing debate on the need for a return to a greater role for public policies in favoring sustainable growth and support investment. In view of the debate on the new EU budget 2021–2017, the scope for a more active industrial policy is discussed.

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