A unified industrial strategy for the EU

This paper aims to advance discussion on a cohesive EU industrial strategy that benefits all Member States and regions and balances multiple policy objectives – from Open Strategic Autonomy and competitiveness to decarbonisation and economic cohesion.

In the paper we outline three key aspects necessary for a successful EU industrial strategy;

Firstly, the need to focus on strategic industries and key value chain segments. We propose different processes for identifying strategic industries for different objectives. To prioritise the most strategic industries, we propose an approach that combines both quantitative data and qualitative expertise.

Secondly, the paper introduces a regional potential map. This tool can be used to conduct multidimensional analysis of the long-term economic potential of all EU regions. In two case studies we demonstrate the effectiveness of this approach. These examples show how unlocking the economic potential of EU regions can promote economic cohesion and facilitate a just transition for workers and regions.

Thirdly, we propose a multi-level governance model, combining centralised coordination within the European Commission and active involvement from Member States and regions.

With the European Commission expected to propose a Clean Industrial Deal to ensure the EU remains competitive while implementing the European Green Deal, this paper is a contribution to the challenge of the detailed design of such a strategy.