Rethinking Modern European Industrial Policy: Beyond the Current EU Legal Framework

Abstract

The purpose of this article is to show that the current European Union (EU) legal framework is unnecessarily restrictive and unduly suppresses economic and developmental initiatives in many stagnating regions across Europe. More innovative industrial policies, instruments and measures should be adopted in a highly decentralized manner across the EU. Between the ‘laissez-faire’ and ‘dirigiste’ approaches, there is significant room to maneuver for more pro-active industrial and development policies. New forms of industrial policies could and should be reinvented and implemented across the EU – not to harm or distort competition, but rather to further enhance it. More than one form and framework exist for a Single Market and for the competition policies.