EU industrial policy

The European industrial strategy

The EU aims to make its industries more competitive globally, and enablers of change, innovation and growth.

The industrial strategy for Europe focuses on three areas:

• dealing with the EU's strategic dependencies
• strengthening the resilience of the single market
• accelerating the green and digital transitions

Additional initiatives were proposed under the Green Deal industrial plan to speed up the net-zero transformation of industry and set Europe on the path towards climate neutrality.

Furthermore, under the competitiveness compass, the Commission proposed a clean industrial deal and an industrial accelerator act, to help manufacturers switch to clean production and technologies, boost manufacturing and enhance EU growth and competitiveness.

Strategic autonomy

Strategic autonomy is about reducing the EU's dependence on others, for example for critical materials and technologies, food, infrastructure and security.

It is also an opportunity to develop markets, products and services and boost competitiveness in the EU.

The industrial strategy proposes:

• working towards diversified international partnerships that help build economic resilience through investment and trade
• supporting new industrial alliances in strategic areas that attract private investors and contribute to job creation
• monitoring strategic dependencies

Critical raw materials

The critical raw materials act, adopted in March 2024, aims to:

• increase and diversify the EU's critical raw materials supply
• improve circularity, including recycling
• support research and innovation on resource efficiency and the development of substitutes

The EU set the following objectives for 2030 as regards the EU's annual consumption:

• at least 10% from EU extraction
• at least 40% from EU processing
• at least 25% from domestic recycling

Chips industry

The EU chips act addresses the key challenges facing the semiconductor industry, with a view to:

• mitigating shortages
• enhancing EU's security of supply and reducing dependency on foreign actors
• creating good-quality jobs and business opportunities

The objective is to double the EU’s global market share in semiconductors by 2030.

Resilience of the single market

The EU has adopted the internal market emergency and resilience act, which provides a structured framework for anticipating, preparing for and responding to significant disruptions within the EU’s internal market.

With this act, the EU aims to:

• strengthen its internal market by implementing proactive measures that allow for effective responses to emergencies
• safeguard critical supply chains
• ensure the continued free movement of goods, services and people

Net-zero technology products

Thanks to the net-zero industry act, the EU will scale up the manufacturing of clean technologies in the EU. 

These new rules will facilitate the conditions for investments in green technologies. 

The objective is to cover 40% of the EU's needs with net-zero strategic technology products, such as solar photovoltaic panels, wind turbines, batteries and heat pumps.

The act will accelerate progress towards the EU climate and energy targets, while boosting the competitiveness of EU industry, creating quality jobs and supporting the EU's efforts to become energy independent.

Electricity market

The reform of the electricity market design aims to:

• make electricity prices less dependent on volatile fossil fuel prices
• shield consumers from price spikes
• accelerate the deployment of renewable energies

At the same time, the reform will provide more stability and competitiveness for companies.

See also