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Aligning Competition Policy and Industrial Policy in the EU

Author

Listed:
  • Tomaso Duso
  • Martin Peitz

Abstract

Trade conflicts, geopolitical tensions, digital disruption, and the climate crisis pose major challenges for the European Union (EU) and its member states. As called for in the Draghi Report, industrial policy measures can increase competitiveness, strengthen resilience, and facilitate the twin transformation. This article explores ways in which competition policy can be realigned to better accommodate industrial policy objectives. Using German competition law as a reference point, it presents options with which legislatures and competition authorities can respond to current challenges, reconcile conflicting objectives, and adapt the decision-making framework. It then considers elements of a competition-oriented industrial policy, understood as an evidence-based, targeted approach in which competition serves both as a guiding principle and as a control variable.

Suggested Citation

  • Tomaso Duso & Martin Peitz, 2025. "Aligning Competition Policy and Industrial Policy in the EU," Discussion Papers of DIW Berlin 2145, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp2145
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    Keywords

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    JEL classification:

    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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