The Quest for a Future-Proof EU Industrial Policy

"The EU must no longer get stuck in the details of a command-driven approach, but must focus on the central strategic challenge: Accompanying Europe's industry on the path to climate neutrality and safeguarding its competitiveness," says cep economist André Wolf. In his latest study, the researcher looked at the necessary changes to EU industrial policy.

According to Wolf, for this to succeed, the Commission must throw its paternalistic attitude overboard and regain confidence in entrepreneurs, consumers and market forces. "After the election, the entire body of EU regulations relevant to industrial policy should be reviewed with regard to its consistency and incentive conformity and streamlined into as few targeted instruments as possible," says the cep researcher.

Wolf believes that these instruments include targeted support for decarbonization through CCfDs, the promotion of green lead markets, incentives to intensify R&D cooperation, measures to increase the attractiveness of the EU for global talent and intensifying strategic trade partnerships with third countries.