Achieving the EU’s industrial policy objectives requires large-scale public financial support. Since EU-level funds are scarce at least in the short term, national state aid must be relied on to fill the gap. However, national state aid is currently not coherently directed at EU priorities, nor are the selection and disbursement mechanisms harmonised across member states, resulting in an ineffective and inefficient policy landscape. This policy brief analyses the instruments the EU already has at its disposal to better align national state aid, and recommends new tools for addressing the gaps identified.