Third, the report argues against declaring certain industries as strategic priorities, since 'strategic' is hard to define and causes all industry to lobby. These are indeed risks, but they can be mitigated with good policy design. More importantly, though,...(14/n)
... doing industrial policy without strategic prioritization won't work: the EU must play to its strengths and be mindful of its weaknesses vis-a-vis China&US. And if this prioritization is not done explicitly, it's still done implicitly, revealed by government focus & allocation of subsidies.(15/n)
Conclusion: The German government should help advance common EU industrial policy, instead of taking two steps back by following the scientific board's advise on these three critical issues. Given the board's obvious expertise, perhaps its next report can show how to operationalise this. (end).
here the board's report (in German) www.bundeswirtschaftsministerium.de/Redaktion/D...
Helpful thread thank you for the work you put in it