Edited by Patrizio Bianchi and Sandrine Labory
Chapter 3: European Industrial Policy
Jacques Pelkmans Introduction The present chapter discusses industrial policy of the European Union. The reader will encounter complexity, two levels of policy making, drastic changes over time and the overall diﬃculty of where to draw the boundaries of EU industrial policy. In the European Union industrial policy is pursued at (at least) two levels of government: the EU and the member states’ levels. Furthermore, owing to shifting convictions in economic analysis as well as the logic of pro-competitive market integration (which has greatly deepened over time), the nature and intensity of European industrial policy has drastically changed over the ﬁve decades since the treaty of Paris.1 These two ‘European’ features add to ‘general’ complications in analysing industrial policy, such as the contrast between normative economic (‘welfare’) and positive analytical approaches of industrial policy, the variations in classiﬁcation of what industrial policy is, and the potentially vast range of tools, quasi-tools and soft forms of persuasion in this area. The aim of the present chapter is to set out and explain the great signiﬁcance of European integration in determining (changes in) structure and performance of industry in Europe. This is due to the deepening of economic integration since the 1970s, the widening of its scope and the enlargement of the club. Member states, drawing on the treaties but also on changing insights about the role and dynamics of markets, have agreed to bind themselves ever more by the pro-competitive logic of deepening market integration and to abide by...
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