Industrial policy of the EU and the case of Bulgaria

The lecture deals with industrial policy (IP), which is probably among the most contentious subjects in economics as it involves government intervention. Since the global financial and economic crisis the role of the state to promote economic development has been reconsidered and industrial policy returned on the agenda. Nowadays not only developing but also many developed countries are pursuing active IPs. We begin by clarifying the meaning of IP, its instruments, the arguments for and against it. Further, we discuss IP in the conditions of globalization and the changed rules of the game. We then proceed with the EU industrial policy which is pursued at two levels – supranational and national.  We look at the changes in the EU stance towards industrial policy and the challenges in front of one of its least developed Member States Bulgaria in its efforts to achieve structural transformation.