The triple purpose of EU industrial policy

Today, the mitigation of climate change is one of the most
important issues worldwide. However, governments also need to
prioritise geopolitical resilience and economic growth when
designing their industrial policies. 

In this episode of the Sound of Economics, Giuseppe Porcaro is
joined by Philippe Aghion, Simone Tagliapietra and Reinhilde
Veugelers to discuss what an innovative, European-level
industrial policy would look like and how it could address all
those competing objectives. 

They propose that the EU should engage in ‘co-opetition’ with the
United States and China, which includes co-operation and
maintaining economic ties to facilitate global decarbonisation
most efficiently. At the same time, they argue that investing in
new technologies in the EU is key to ensure its competitiveness
and economic stability.
 
Relevant publication:
Aghion, P., K. Ahuja, C. P. Bown, U. Cantner, C. Criscuolo, A.
Dechezleprêtre, M. Dewatripont, R. Hausmann, G. Lalanne, B.
McWilliams, D. Rodrik, S. Tagliapietra, A. Terzi, C. Trasi, L.
Tyson, R. Veugelers, G. Zachmann and J. Zysman (2023) Sparking
Europe’s new industrial revolution: a policy for net zero, growth
and resilience.