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Lars Niklasson, Associate Professor in Political Science, Linköping University

Explore the shifting policy paradigms in EU industrial policy from mercantilism to neoliberalism and back again. Delve into the contradictions between neoliberal aspects like competition and deregulation, and mercantilist aspects like collaboration and support for firms. Understand the motives, conflicts, and potential growth implications of this policy mix. How will Europe survive globalization amidst diverse national traditions and competing paradigms? Discover the underlying conflict of maintaining diversity. Is a new European compromise towards a more social market economy possible?

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Lars Niklasson, Associate Professor in Political Science, Linköping University

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  1. From Mercantilism to Neoliberalism and Back Again? Shifting Policy Paradigms in EU Industrial Policy Lars Niklasson, Associate Professor in Political Science, Linköping University

  2. Contradictory policies? • A ”neoliberal” side: • ”Creative destruction”, competition • Deregulation/common regulation • A common currency, restricted gov’t • A ”mercantilist” side: • Competitiveness, collaboration • Support for firms, regions, individuals • Eurochampions?

  3. Good or bad? • Interesting to a political scientist! • Why this mix? • Where are the political conflicts? • What are the motives and ideas? • Will this mix produce growth? • Is diversity a problem or a strength? • Will Europe survive globalization? • This overview is a first step

  4. A clash of national traditions?

  5. A triangular drama?

  6. Oscillating compromises

  7. Explanations? • External events and crises • High level compromises (Thatcher, Mitterand, Kohl) • Shifting majorities • Business lobbying? (ERT?) • DG’s with different perspectives • Growing importance of the Parliament • Competing paradigms in Economics

  8. The underlying conflict:Should diversity be maintained?

  9. A new European compromise? A more social market economy?

  10. Summary and conclusions • An interesting contradiction of policies • Europe needs SMEs and MNCs • A risk that politics is short-sighted and supports existing firms too much • Europe needs instruments for skills development and flexibility • Better to support individuals than to support firms

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