Structural Asymmetries and the Limits of Contemporary Industrial Policy

This chapter maps structural asymmetries across European Union (EU) Member States, drawing on a multidimensional framework encompassing energy availability, energy affordability, technological capacity, energy intensity, and environmental sustainability. The analysis shows that Europe remains strongly dependent on fossil fuels and external suppliers: in 2022, over 60% of its gross available energy derived from oil, gas, and solid fuels. Renewables accounted for only around 18%, while energy import dependency exceeded 60%, reaching over 90% in several Member States. Substantial and persistent asymmetries are observed between a small group of northern and western economies and their southern and eastern counterparts, reflecting long-standing differences in industrial structure, innovation capacity, and fiscal space. The findings highlight the need for a differentiated and territorially sensitive approach to EU energy and industrial policy, one that addresses both immediate risks and long-term capacity gaps. If EU industrial policy continues to rely primarily on national resources, it is likely to reinforce divergence across the Union, as the largest and least-indebted countries are best positioned to benefit from the current framework. Without stronger coordination and redistributive mechanisms at the EU level, the green transition risks exacerbating, rather than reducing, existing structural divides.