Progressive Industrial Policy in Europe

Amid accelerating global warming, the digital revolution and rising geopolitical tensions, industrial policy has taken centre-stage in EU policymaking. Consequently, initiatives such as the Green Deal Industrial Plan, the CHIPS & Science Act, the Important Projects of Common European Interest (IPCEIs) and the InvestAI initiative have been developed or proposed recently. Meanwhile, by reintroducing competitiveness and security as primary objectives for industrial policy, European policymakers appear to backtrack on the social and environmental agenda, while not effectively addressing critical governance deficits and financing gaps. European industrial policy is thus at a critical juncture, and its strategic trajectory is currently under discussion. The volume intervenes into current industrial policy debates from a critical perspective. Achieving sustainable, inclusive and effective industrial policy depends on embracing a progressive approach that prioritises broad stakeholder engagement, effective governance and accelerated implementation, instead of a push for rearmament and geopolitical competition. Progressive Industrial Policy in Europe serves as a key reference for scholars and students in a diverse range of academic disciplines. The volume is also intended for researchers active at trade unions, think tanks and NGOs, along with policymakers and specialised civil servants at supranational, national and local levels. The Open Access version of this book, available at http://www.taylorfrancis.com, has been made available under a Creative Commons Attribution-NonCommercial-NoDerivatives (CC-BY-NC-ND) 4.0 International license.

Werner Raza is Director of Research at the Austrian Foundation for Development Research (ÖFSE). His research focuses on development economics and policy, international trade, global value chain analysis, and industrial upgrading, with a regional focus on Europe, Latin America, and Northern and Eastern Africa. Christa Schlager is Head of the Economic Policy Department at the Chamber of Labour, Vienna. She has written extensively on European industrial policies, fiscal issues, climate policies, and gender issues. Viktor Skyrman is a political economist and postdoctoral researcher based at the Department of Business Studies, Uppsala University, and the European University Institute, Florence. He researches issues related to industrial policy, finance and economic development in various contexts. Michael Soder is an economist at the Economic Policy Department of the Chamber of Labour, Vienna. He is also a lecturer at the Vienna University of Economics and Business and the University of Applied Sciences Campus Vienna.

Introduction - the Why, How, and for Whom of Industrial Policy for the Twin Transformation? Werner Raza, Christa Schlager, Viktor Skyrman and Michael Soder, Part I. External Dependencies of the European Union and How to Tackle Them, 1. Structural Asymmetries and the Limits of Contemporary Industrial Policy: The Risk of Green Divergence in the EU Dario Guarascio, Jelena Relic and Francesco Zezza, 2. Tackling EU Critical Raw Materials Dependencies Bernhard Tröster, Karin Küblböck and Simela Papatheophilou, 3. Technological Dependencies of the European Union: Implications for Industrial Policy Christian Reiner and Roman Stöllinger, Part II. Employment and Labour Market Challenges of the Twin Transformation, 4. On the Way to Net-Zero: How Progressive Industrial Policy Can Shape Employment Change Belá Galgóczi, 5. Policies for the Green Transformation in Europe: the Just Transition Fund in Action Valeria Cirillo, Annaluisa Divella, Eustacchio Ferulli and Lidia Greco, Part III. Governance Challenges of Progressive Industrial Policy, 6. Strategic Outlook, Legitimacy and Directionality: Tackling Key Institutional Deficits of EU Industrial Policy Werner Raza, 7. Past, Present and Future of Innovation Agencies in Europe Rainer Kattel, Part IV. Funding Challenges for Progressive Industrial Policy, 8. Financing the European Union's Progressive Industrial Policies: Strategies Beyond Financial Derisking Viktor Skyrman, 9. Boosting Public Spending for the Twin Transition under the New EU Fiscal Rules: a Proposal Philipp Heimberger, 10. Building a Coherent European Green Macrofinancial Regime: How the ECB Can Leverage the EU's Sustainable Finance Framework to Secure Climate Objectives and Price Stability Gaston Bronstering, Agnieszka Smole-ska and David Barmes, Part V. Outlook, 11. Progressive Industrial Policy for the Global South: a Latin American Structuralist Approach José Miguel Ahumada and Fernando Sossdorf, 12. Towards Progressive Industrial Policy for the EU's Twin Transformation: a Proposal Werner Raza, Christa Schlager, Viktor Skyrman and Michael Soder, Index.