“Open strategic autonomy” as an industrial policy compass for the EU competitiveness and growth: The good, the bad, or the ugly?

Abstract

AbstractThis paper explores the potential of Open Strategic Autonomy to effectively foster industrial policies that boost EU competitiveness and growth. It investigates changes in the global economy and international order, with a focus on two key concepts: the "win-lose" reconfiguration of globalization and the resurgence of nations as "confrontational states," marked by interventionism, national sovereignty, techno-nationalism, and zero-sum thinking. Within this context, a "new industrial policy" is emerging, driven by a focus on economic autonomy and security. The paper analyzes the industrial strategies and legislative measures adopted by major powers, which are largely designed to weaponize policymaking and international economic relations, including the use of tit-for-tat strategies. It situates the EU within this framework and questions the compatibility and coherence between the emerging European measures inspired by new geo-dirigisme and the principles of an open economy and multilateral cooperation. The conclusion provides criteria for assessing whether Open Strategic Autonomy can serve as a positive guide for industrial policies, rather than a detrimental one.