EU Industrial Policy in the Evolving Geopolitical and Geo-economic Environment

Michael A. Landesmann ()
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Michael A. Landesmann: Vienna Institute for International Economic Studies (wiiw)

Chapter Chapter 10 in The Future of European Integration, 2026, pp 305-354 from Palgrave Macmillan

Abstract: Abstract This chapter explores the evolving landscape of industrial policy (IP) within the European Union (EU) against a backdrop of shifting geopolitical and geo-economic dynamics. It begins by defining industrial policy as a set of instruments aimed at influencing the structural composition of economies to achieve growth and competitiveness. The chapter identifies three distinct contexts for IP: developing economies seeking to catch up technologically, advanced economies striving to maintain their leadership, and those facing challenges from rapidly advancing competitors like China. It emphasises the importance of international context, particularly for EU member states, which can leverage the bloc’s integrated market for coordinated policymaking. The discussion extends to the broader aims of IP, including social and ecological sustainability, and the diverse instruments available for implementation. The chapter highlights the challenges posed by global competition, particularly from the US and China given their increased geo-political rivalry, and the need for the EU to adapt its strategies to maintain its competitive edge. It concludes with recommendations for a more cohesive and effective industrial policy that addresses the unique needs of differently placed regions and sectors within the EU, while also fostering cooperation with neighbouring countries and the Global South.

Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:pal:stuchp:978-3-032-20186-7_10

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DOI: 10.1007/978-3-032-20186-7_10

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