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Europe debates how to advance industrial policy while avoiding protectionist measures

Executive summary: El País published an article questioning whether Europe can pursue an industrial policy that protects strategic sectors without adopting protectionist measures, noting that reluctance to share sovereignty has been costly. The debate shapes EU state‑aid rules, competitiveness of European industry, and transatlantic trade relations.

Who is involved: European policymakers, industry leaders, and commentators on EU industrial policy.

Likely next: EU institutions may continue deliberations on the next generation of industrial strategy, with potential updates to state‑aid frameworks later in 2026.

El País notes that the reluctance to share sovereignty at the European level has proved costly. The article questions whether an industrial policy can shield strategic sectors without resorting to protectionist measures. It frames the tension between seeking competitive advantages and maintaining open markets within the EU. No prescription is offered, only the dilemma is highlighted.

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