Holding Back Europe’s Economic Nationalists
The global economic crisis, together with the growth of emerging markets, is putting Europe’s longstanding overcapacity problems firmly in the spotlight. To prevent the EU's single market from going bust, national policymakers must implement industrial restructuring policies in tandem.
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PARIS – The German and French governments have been scrambling to save their automobile and truck industries though big fiscal injections, making it clear that, within much of the European Union, industrial policy has returned with a vengeance. But, throughout last year, French, German, and other EU leaders worked against rather than with each other when putting their policies in place. As a result, some European industries got undue protection, while others were squeezed out of the market.