Europe is entering a period of structural economic stress that demands a serious policy response. A second China shock — this time concentrated in advanced manufacturing, electric vehicles, and clean technology — is hollowing out the industrial base of Europe’s export-led economies and compressing the wage and employment gains on which social cohesion depends. Meanwhile, Europe’s technological dependence in digital infrastructure, energy systems, and defence — exposed sharply by a decade of geopolitical shocks — is no longer a strategic inconvenience but an economic liability.
The answer strategic autonomy and innovation-led growth: building the industrial and technological ecosystems that generate productive, well-paid jobs at scale; reducing strategic vulnerabilities through sovereign capacity in digital, energy, and defence; and designing public investment frameworks smart enough to crowd in private capital rather than substitute for it. Growth is the fertile ground on which every other European challenge — energy transition, social cohesion, fiscal sustainability, geopolitical credibility — will ultimately be resolved or frustrated.
EMPN’s industrial and innovation policy work sits at the heart of this challenge. We analyse the structural sources of European competitiveness, design efficient allocation mechanisms for strategic public investment, and develop proposals — legally grounded, fiscally credible, and politically feasible — to help Europe move from subsidy reflex to genuine industrial strategy.
