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An Industrial Strategy for Europe

The EU has never had an active industrial policy for the simple reason that, unlike China and the US, it does not have a federal budget with which to provide large subsidies to specific sectors. But the EU does have the tools it needs to implement growth-enhancing measures of its own.

MILAN – “Industrial policy” has moved to the center of economic and even national-security debates, from the United States to the European Union. But the term can be misleading, not only because its meaning is rather vague, but also because it fails to capture the true imperative facing policymakers.