EU delays high-stakes industrial policy tool

Oliver Dean | 23rd January 2026 | Brussels, Policy & Think Tanks, Politics

EU institutions have postponed the release of a long-anticipated industrial policy instrument, a move that has frustrated several national governments and delayed work on broader competitiveness initiatives. Reporting by EU policy outlets says the so-called Competitiveness Coordination tool has been delayed again, slowing progress on related Council workstreams tied to the European Competitiveness Fund and other flagship programmes.

The Competitiveness Coordination tool is intended to align EU industrial competitiveness strategy with funding instruments and regulatory frameworks. Member states and EU institutions had expected the instrument to provide guidance on funding allocation and support for strategic sectors, but the latest postponement has pushed back discussions in the Competitiveness Council. Capitals have expressed irritation at the repeated timetable changes, given the pressure to respond quickly to global competition. The delay comes as Europe continues to face high energy costs and persistent supply chain vulnerabilities. These issues have been repeatedly identified by governments and EU officials as structural risks to industrial competitiveness. Several member states have argued that slow progress on new industrial policy tools is undermining the bloc’s ability to respond to challenges posed by the United States and China. Officials involved in preparatory work have pointed to the complexity of des...

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