The climate crisis, the digital revolution and growing geopolitical rivalries are forcing industrial policy powerfully onto the EU agenda. The current debate centres on whether the EU is pursuing a narrow, defensive industrial policy focused on competitiveness and security, which could result in the dilution of green and social objectives, or whether it will embrace a more forward-looking, mission-oriented and inclusive approach.

A forward-looking agenda requires accelerating the twin transformation by empowering workers and citizens, closing the funding gap through EU-level investment tools and strengthening governance with social conditionalities to ensure the fair distribution of benefits and burdens. At this pivotal moment, Europe has the opportunity to forge a distinct model of industrial policy rooted in democracy, sustainability, and inclusion.