Finance and Industrial Policy: Beyond Financial Regulation in Europe

The 2008 global financial crisis, together with the experience of de-industrialization across Western Europe over the last three decades, has focussed attention on financial regulation and industrial policy. Industry and finance policies have largely been discussed separately, and this book argues that the two should be considered together, in both analysis and policy formulation that deals with critical questions of how finance has intervened in industrial restructuring and how it might better serve the real economy. Moreover, policy debates have paid relatively little attention to the heterogeneous economic structures and growth trajectories of European economies, and the interconnectedness and interdependencies of growth paths that present specific challenges to policy and highlight the need for cooperation across the region. This book brings together leading scholars and policy makers to contribute to policy debates in three ways. First, it includes current discussions of banking policy, regulation, and reform to reassert the need for financial institutions that will back up and finance an industrial policy to revive the European economy. Second, it reviews the role of industrial and investment policy in supporting innovation, creating jobs, and generating sustainable economic growth. Third, it advances alternative policy proposals aimed at generating sustainable economic growth and employment in Europe. Part I analyses the nature of growth, industrial, and economic restructuring in relation to finance in the lead up to the crisis, at regional, national, and sector levels. Part II presents alternative and progressive policy proposals for growth and employment in Europe in light of the analysis presented in Part I. Contributors to this volume - Michel Aglietta, University of Paris X Ouest Nanterre Nicolas Balas, Montpellier University School of Management Joachim Becker, Vienna University of Economics and Business Riccardo Bellofiore, Universita di Bergamo Udo Bullmann, European Parliament Predrag Cetkovic, Vienna University of Economics and Business Giovanni Cozzi, University of Greenwich Massimo D'Alema, Foundation for European Progressive Studies Marc Fovargue-Davies, London Centre for Corporate Governance and Ethics Daniela Gabor, University of the West of England Francesco Garibaldo, Instituto per Lavoro Stephany Griffith-Jones, Columbia University Matthias Kollatz-Ahnen Sue Konzelmann, Birkbeck, University of London Michele Mastroeni, Conference Board of Canada Mariana Mazzucato, University of Sussex Susan Newman, University of the West of England Florence Palpacuer Alessandro Rosiello, University of Edinburgh Jan Toporowski, SOAS, University of London Rudy Weissenbacher, Vienna University of Economics and Business