The political economy of European anti-trust and industrial policy

Abstract

This paper discusses alternative political economic perspectives on competition (anti-trust) and industrial policies (IP), in theory and in practice, while critically assessing recent European IP in this context. It develops a new framework for IP, which emphasises the sustainability of value and wealth creation at the firm, meso and supranational levels, and explores its implications for IP in general and European IP in particular. It views current EU policies as a step in the right direction, but argues that they need to pay more attention to the issue of economic sustainability, the link between corporate, public and supranational governance, and the impact that different power structures and hierarchies of agencies have on industrial policies for sustainable value and wealth creation. The limitations of self-monitoring and diversity suggest the need for an accountable supranational competition and regulatory policy organisation with a strong focus on economic sustainability.