The Coherence of EC Policies on Trade, Competition and Industry
AbstractThis paper assesses the coherence between industrial policy, competition policy and trade policy in the European Union (EU). This assessment is undertaken from the perspective of the optimal deployment of economic policies as prescribed by economic analysis and takes into consideration the legal mandate and the institutional constraints imposed by EU treaties and regulations. The analysis shows that as a result of the limited policy tools available to the Union, trade and competition policies have to fulfil several competing goals. This multiplicity of objectives leads to non-optimal interventions. Policy inconsistencies arise also between trade/competition policies and the industrial policy of Member States. Current policy practice leads to inefficient outcomes both in mature and sunrise industries. These inefficiencies could be reduced with a reinforcement of integration policies (notably, state aid control). The paper argues that the current institutional arrangements allow for a strengthening of centralized industrial policy, however, which could be usefully utilized to achieve more efficient outcomes. Other policy conflicts, mostly between trade and competition policies, are also discussed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1105.
Date of creation: Jan 1995
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Find related papers by JEL classification:
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
- L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.