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Headwinds and Springboards for EU Industry

Author

Listed:
  • Román Arjona

    (Directorate-General Internal Market, Industry, Entrepreneurship and SMEs European Commission)

  • Frank Vandermeeren

    (Directorate-General Internal Market, Industry, Entrepreneurship and SMEs European Commission)

Abstract

This contribution examines both the headwinds and springboards facing EU industry, amidst a fast-moving geopolitical and geo-economic landscape. Cost pressures, strategic dependencies and investment gaps risk widening Europe’s competitiveness differential with other major economies. Yet, opportunities lie ahead to overcome these constraints, including pushing forward the integration of the EU Single Market, exploiting the catalytic effect of strengthened economic security policies and a refocused European long-term budget, and ensuring that EU-level industrial initiatives build on the EU’s competitive advantages to turn technological and commercial strengths into long-term strategic gains. These springboards should support the effective reallocation of capital towards more productive industrial activities, strengthening Europe’s industrial competitiveness base, and accelerate the development of clean and more resilient supply chains and production capabilities.

Suggested Citation

  • Román Arjona & Frank Vandermeeren, 2026. "Headwinds and Springboards for EU Industry," Industrial Economic Review 023843, Korea Institute for Industrial Economics and Trade.
    • Handle: RePEc:ris:kieter:023843
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    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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