Europe is rediscovering its penchant for statist intervention

DESPITE ITS reputation as a place where politicians like to meddle in all aspects of the economy, Europe is often standoffish when it comes to championing industry. Some politicians, notably in Paris, do think of themselves as behind-the-scenes business titans. But the default EU position is for trade and investment to be open, exposing firms to global competition. Robust antitrust enforcement hobbles potential monopolists. Most important, “state-aid” rules enforced from Brussels prevent national governments mollycoddling favoured firms with tax breaks or subsidies, unlike nearly everywhere else.

Until now. A consensus has emerged in Europe that the open approach is not working. The continent, it is argued, has missed the boat on tech, which is dominated by America. China has protected and promoted its firms to the point where they can take on European rivals. Exciting breakthroughs in fields from quantum computing to next-generation cars seem to be happening everywhere else. Could policy tools used by its rivals nudge European industry back into the big leagues?