Reinventing Modern European Industrial Policy – A Regional Response to the Crisis

• Published in: Lex localis-journal of local self-government Vol. 12; no. 3; pp. 451 - 466
• Main Author: Nahtigal, Matjaz
• Format: Journal Article
• Language: English
• Published: Maribor Institute for Local Self-Government and Public Procurement Maribor 01.07.2014
• Subjects: Accountability; Administrative decentralization; Alliances; Autonomy; Competition; Development Policy; Economic models; Europe; European Union; Financial crisis; Industrial Policy; Interest Groups; Legal protection; Legal theory; Management; Market Economy; Markets; Norms; Public administration; Europe
• ISSN: 1581-5374; 1581-5374
• DOI: 10.4335/12.3.451-465(2014)

The purpose of this article is to show that, the current European Union (EU) legal framework is unnecessarily restrictive and unduly suppresses economic and developmental initiatives in many stagnating regions across Europe. More innovative industrial policies, instruments and measures should be adopted in a highly decentralized manner across the EU. Between the 'laissez-faire' and 'dirigiste' approaches, there is significant room to maneuver for more pro-active industrial and development policies. New forms of industrial policies could and should be reinvented and implemented across the EU -- not to harm or distort competition, but rather to further enhance it. More than one form and framework exist for a Single Market and for the competition policies. Modern industrial policy presupposes high-quality public institutions with highly competent administration. It requires autonomy and accountability of the public administration to counter the pressures of various interest groups. The proposal to revive and articulate modern types of industrial policies across the EU is a call for comprehensive economic and social restructuring. Adapted from the source document.