The European Industrial Policy

The increasing internationalisation of economy will produce positive effects, under the condition that the EU industrial policy fine-tunes with the process and supports its evolution. This particularly applies in phases of harsh conjuncture, heavy competition, shortages and increase of prices of basic commodities. The EU enlargement provides for great opportunities, however, the competitive advantages of new member states are temporary. It is necessary to safeguard the industrial competitiveness of old and new member States by supporting the gradual evolution to the knowledge economy and the modernisation of productive systems and infrastructures. Higher productivity, working time and flexibility of labour market are crucial to maintain the industrial basis in Europe, that is called to catch up in productivity and costs structure by investing in highly innovative sectors. Targeted industrial policies and fair trade rules must support the process.