The Policy Brief by Jannik Jansen, Philipp Jäger and Nils Redeker is discussed in the Tagesspiegel Energy and Climate Background newsletter.
Tagesspiegel reports on the results of the Policy Brief, citing Jansen, Jäger, and Redeker’s estimate that a proper European response to the US Inflation Reduction Act (IRA) would require over two hundred billion euros.
However, instead of increasing investment at the European level to attempt to reach this figure, the EU has introduced the Strategic Technologies European Platform (STEP). According to Philipp Jäger, STEP however is only “another exercise in hocus-pocus shuffling, in order to announce impressive figures.” This approach has left industrial policy essentially in the hands of national governments, meaning that only the strongest states can benefit from relaxed state aid rules. “This threatens the integrity of the Single Market,” Jäger states. His co-author Nils Redeker goes on to argue that “the EU system is essentially incapable of conducting industrial policy,” meaning that significant reform would be required.
You can read the full Policy Brief here.