EU Industrial Policy: Financing Ambitions?

The European Union (EU) has set out ambitious goals for its industrial policy, aimed at promoting economic growth, job creation, and a transition to a more sustainable and digitalized economy. However, achieving these goals will require significant investment, and the question of financing has become increasingly important. This article will explore the EU’s industrial policy goals and examine the financing options available to the EU.

The EU’s Ambitious Industrial Policy Goals

The EU’s industrial policy aims to make Europe a global leader in advanced manufacturing, innovation, and sustainable industry. The policy aims to increase the contribution of industry to the EU’s gross domestic product (GDP) to 20% by 2020, promote the circular economy, support small and medium-sized enterprises (SMEs), and create a European industrial strategy for the digital age. Achieving these goals will require significant investment in research and innovation, infrastructure, skills training, and support for SMEs.

Exploring Financing Options for Success

The EU has a range of financing options available to support its industrial policy goals. These include the European Structural and Investment Funds, which provide support for regional development, research and innovation, and SMEs. The EU also has a range of financial instruments, such as the European Investment Bank (EIB), which provides loans and guarantees to support investment in infrastructure, innovation, and SMEs. The EU’s Horizon 2020 program provides funding for research and innovation projects, while the European Fund for Strategic Investments (EFSI) aims to mobilize private investment in strategic areas such as infrastructure, education, and research.

The EU is also exploring new financing mechanisms, such as the proposed European Innovation Council (EIC), which would provide funding and support for breakthrough innovation projects. The EU is also considering the establishment of a European Industrial Strategy Investment Fund, which would provide financing for strategic industrial projects.

Achieving the EU’s industrial policy goals will require significant investment, and the EU has a range of financing options available to support its ambitions. These range from traditional funding sources such as the EIB and Horizon 2020, to new mechanisms such as the EIC and proposed Industrial Strategy Investment Fund. However, the EU must ensure that these financing options are used effectively and efficiently to support the development of a sustainable, competitive, and innovative European industry.

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