Issue Limited common EU funding and uneven national fiscal capacity constrain industrial policy

Summary

EU industrial policy combines national state aid, EU funds, public procurement and incentives for private investment. Because common EU-level financing is limited, much of the support depends on the fiscal capacity of individual member states. The report warns that these differences can affect both how policies are implemented and where industry locates across the Union. The same fiscal disparities are likely to influence how quickly members can raise defence spending under the new NATO commitments. Together with permitting and skills problems and high energy prices, limited EU fiscal tools leave a real gap between the goals of the new industrial strategy and what can actually be delivered.