The triple purpose of EU industrial policy

How can the European Union’s industrial policy advance decarbonisation while fostering strategic autonomy and economic efficiency?

Publishing date
05 July 2023

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. BownU. CantnerC. Criscuolo, A. Dechezleprêtre, M. Dewatripont, R. HausmannG. LalanneB. McWilliamsD. RodrikS. Tagliapietra, A. Terzi, C. TrasiL. Tyson, R. Veugelers, G. Zachmann and J. Zysman (2023) 'Sparking Europe’s new industrial revolution: a policy for net zero, growth and resilience'.

Related content


Sparking Europe’s new industrial revolution: A policy for net zero, growth and resilience

This book assesses what must be done to implement industrial policy in a way that will achieve overarching goals while minimising distortions.

Philippe Aghion, Ketan Ahuja, Chad P. Bown, Uwe Cantner, Chiara Criscuolo, Antoine Dechezleprêtre, Mathias Dewatripont, Ricardo Hausmann, Guy Lalanne, Ben McWilliams, Dani Rodrik, Simone Tagliapietra, Alessio Terzi, Cecilia Trasi, Laura Tyson, Reinhilde Veugelers, Georg Zachmann and John Zysman