Economic Security and the Transformation of European Union Economic Governance: Industrial Policy, Competitiveness, and Strategic Resilience

What the paper says

This article analyses the rise of economic security as a new organising principle of European Union economic governance and examines the extent to which this concept is transforming the traditional model of European industrial and market policy. In the context of escalating geopolitical rivalry, the disruption of global supply chains, technological competition, and energy uncertainty, the EU is gradually shifting away from a purely regulatory approach based on market liberalisation and competition enforcement towards a more active and strategically oriented model of intervention. The study employs a qualitative political-economic research design, combining policy and document analysis with case studies of strategic sectors, including advanced technologies, critical raw materials, energy, and trade-investment instruments. The findings demonstrate that economic security is operationalised through coordinated investment, the support of domestic capacities, and the selective protection of strategic industries. This contributes to the mitigation of systemic risks, the strengthening of technological sovereignty, and the enhancement of supply chain resilience. However, these policies simultaneously create tensions between efficiency, fiscal sustainability, and the integrity of the Single Market. The article contributes to the political economy literature by conceptualising economic security as a hybrid model that merges market integration with strategic public coordination and evaluates its implications for the Union’s long-term competitiveness and economic development.