Episode 36 The Return of Industrial Policy: What's Driving the Surge in Europe and Central Asia?

Europe and Central Asia has announced more than 2,600 industrial policies since 2009 — more than one new intervention every day for sixteen years. But have these policies actually delivered stronger growth, resilience, and diversification? In this episode, we unpack the findings of the World Bank’s Spring 2026 Europe and Central Asia Economic Update. From slowing growth and persistent inflation to rising subsidies and geopolitical pressures, the discussion explores why industrial policy has returned to the center of economic strategy across the region. The episode examines what tends to make industrial policy succeed, where it often fails, and why open trade, competitive markets, and structural reforms remain essential foundations for long-term growth. Generated with AI using wondercraft.ai and guided by our experts. Read more at https://openknowledge.worldbank.org/server/api/core/bitstreams/f6424ef3-a279-4872-a77a-34cf01c4c8af/content