The awkward truth of industrial policy
The global economy suffered a significant upturn following COVID-19. However, the signs that this increase has reached a stage of exhaustion are clearly conditioned by the climate crisis: the rate of economic growth of the major world powers, productivity is stagnating and ambitious renewable investment programmes are fading for lack of profitability.
In this context, there has been a change of discourse: the free market is no longer the solution to all problems, the dogma laissez-faire is limited to characters like Milei. A new consensus seems to be emerging, in which public intervention in the economy is being advocated. On the right and left, industrial policy is being returned. In general, for those of us who are always critical of the free market and demand public and Community management of the economy, it would certainly be good news, but beyond the headlines we have to look at the content, because not all industrial policies are the same.
Last year the companies of Hego Euskal Herria produced material worth EUR 500 million for the Spanish Army
The first example, that of the Next Generation funds: it has targeted big capital, but there is no clear evidence as to whether it has influenced the level of production. However, what seemed like a new ecologist Keynesianism is being replaced by a classic war Keyneasianism. This is evidenced by the European Commission’s new strategy for the defence industry, which sets as one of its objectives the promotion of trade geared to defence at internal level, so that 50% of the materials produced are marketed within the European Union by 2030.
On that chessboard, where do we stand? The Basque Country stands out for being an exporter. A third of what we export goes to Germany and France, precisely, to the main promoters of the war economy and to the sectors that, directly or indirectly, are suppliers of the defence industry. Aeronautics, steel and vehicles are half of what we sell to Germany and one third of what we sell to France. In addition, 10 per cent are weapons and ammunition. As if that were not enough, according to the Delàs Peace Research Center, last year the companies of Hego Euskal Herria produced material worth 500 million euros for the Spanish Army. Therefore, the design of the industrial policy of the Basque Country requires confronting this uncomfortable truth and, consequently, deciding how we stand in this warmongering escalation.
Bidali zure iritzi artikuluak iritzia@argia.eus helbide elektronikora
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