EU Industrial Policy: Vertical Aid in Battery Production
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December 2019 the European Commission approved €3.2 billion in state aid to create a European car battery value chain under the notion of green growth and industrial prowess. This action reveals an apparent break with previous policy, constituting a break from horizontal to vertical industrial policy. This paper seeks to first establish whether or not the EU experienced a break. After which, this insight is validated through HI paradigm shift theory. It leads the paper to a causal mechanism in which minimum causes for a shift are laid bare. This article argues that the EU in fact did not experience a paradigm shift, as vertical policy was already in place. As multiple INUS causes appear inconclusive or absent, theory supports the inference that a shift did not take place.
Faculteit der Managementwetenschappen