EU defence industrial policy: from market-making to market-correcting

I have just published a chapter entitled ‘EU defence industrial policy: from market-making to market-correcting’ in a book entitled EU Industrial Policy in the Multipolar Economy and co-edited by Jean-Christophe Defraigne, Jan Wouters, Edoardo Traversa and Dimitri Zustrassen.


This incisive book provides key interdisciplinary perspectives on the current challenges faced by EU policymakers in framing and implementing a coherent European industrial policy, employing specific case studies from the digital, automotive, steel and defence industries as well as concrete examples of EU policies.

Comprehensive and analytical, the book investigates the long-term structural causes of the absence of a strong industrial policy at Union level. Examining the tensions that exist between member states and EU institutions regarding industrial and competition policies, expert contributions assess the conditions for an integrated EU industrial policy to emerge. A comparative analysis between the industrial policies of the EU, US and China is developed as chapters explore how the EU maintains its position in global value chains while other major partners are forced to pursue strategic trade and industrial policies to retain their dominant position. The book concludes with a presentation of prospective scenarios to assess the future technological evolution of the EU.

EU Industrial Policy in the Multipolar Economy will be an essential resource for academics and practitioners concerned with EU current affairs, global governance, industrial economics and international trade. Its use of case studies and original data will allow governments, EU institutions, NGOs and EU public affairs consultants and analysts to assess their policymaking options in the fields of research, industrial policy and sustainable development.

Critical Acclaim

A timely book on a fundamental theme for the future of European sovereignty, which brings together experts from the academic world and practitioners of industrial policy. The various case studies on key industries, the historical and legal perspectives and the comparative analysis with the experiences of the US and China provide a deep insight into the workings and challenges of EU industrial policy in this twenty-first century. A must-read for all those who feel concerned about Europe’s strategic autonomy.’
– Romano Prodi, Professor Emeritus of Industrial Policy at the University of Bologna, Former Prime Minister of Italy and Former President of the European Commission

This book provides an in-depth analysis of the complex debate on the nature and scope of EU powers in the area of industrial policy, which finds its origins in different approaches followed by the Treaties of Paris and Rome and which is still not settled today. As a former Vice President of the European Commission directly involved in the making of European industrial policy, I congratulate the editors and authors for their pertinent and insightful analyses.’
– Etienne Davignon, Former Vice President of the European Commission and President of the Brussels-based think tank Friends of Europe


1 Introduction to EU Industrial Policy in the Multipolar Economy: past lessons, current challenges and future scenarios 1 – Jean-Christophe Defraigne, Edoardo Traversa, Jan Wouters and Dimitri Zurstrassen

2 Industrial policy and EU state aid rules 45 – Edoardo Traversa and Pierre M. Sabbadini

3 Industrial policy, competition policy and strategic autonomy 80 – Pim Jansen and Wouter Devroe

4 The international legal framework for industrial policy: World Trade Organization disciplines and rules 122 – Jan Wouters and Julia Marssola

5 EU industrial policy: lessons from the experience of the 1960s to the 1990s 159 – Eric Bussière

6 European industrial policy from 2000 to 2020 173 – Franco Mosconi

7 US industrial policy: the not-so-visible hand of the state and securing the dominance of US prime movers 210 – Jean-Christophe Defraigne

8 China’s industrial policy: the visible hand of the party-state to catch up by any means necessary 242 – Jean-Christophe Defraigne

9 EU industrial policy in the steel industry: historical background and current challenges 270 – Dimitri Zurstrassen

10 The European automotive industry: a strategic sector in search of a new industrial policy 304 – Samuel Klebaner and Sigfrido Ramírez Pérez

11 Falling behind and in between the United States and China: can the European Union drive its digital transformation away from industrial path dependency? 332 – Patricia Nouveau

12 EU defence industrial policy: from market-making to market-correcting 382 – Samuel B. H. Faure

13 Conclusion: a European industrial policy for the twenty-first century 407 – Riccardo Perissich

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