Introduction to EU Industrial Policy in the Multipolar Economy: past lessons, current challenges and future scenarios

In this introductory chapter, we explore the recent developments and drivers towards a new industrial policy for the European Union (EU or Union) in order to better situate the more specific chapters in this volume. We first point to the progressive re-emergence of industrial policy at the forefront of the EU's agenda in the past two decades, culminating in the Von der Leyen Commission's quest for open strategic autonomy. Secondly, the very concept of industrial policy will be revisited, including rationales and theoretical and historical arguments. We then survey the various industrial policy tools, from classic horizontal to vertical and specific. Industrial policy at the EU level poses significant challenges for a variety of reasons. These include the reluctance of Member States to transfer industrial policy tools to a supranational level, but also the absence of an esprit de corps among industrialists in light of the rivalries between national business elites, the lack of centralized power over the internal market and Europe's technological dependence on the US. Finally, we outline three possible scenarios for the future of EU industrial and technological policy.