Irati Oleaga
PUBLIC LAW DIVISION
In the European context marked by a relative loss of industrial and technological competitiveness compared to other major economic powers, particularly the United States and China, Europe risks being displaced from industrial leadership and the global technological arena.
This situation results from several concurrent factors: fragmentation of the internal market, lower levels of investment in innovation, dependence on third countries in strategic sectors, and the cumulative impact of recent health, energy and geopolitical crises. This scenario represents a turning point for European industrial policy and opens a window of opportunity for those regions capable of aligning their industrial fabric with the new strategic agenda.
The diagnosis formulated at the European level in the Letta and Draghi Reports highlights the structural deterioration in European competitiveness. The Letta Report warns of the limitations of the single market in generating sufficient industrial scale and proposes greater integration in key areas such as knowledge, innovation and financing. The Draghi Report identifies three major weaknesses in the European model: stagnating productivity growth, insufficient investment in R&D&I, and increasing external dependence in energy, critical raw materials and strategic technologies.
This context is compounded by a profound transformation of the international geopolitical and trade landscape, marked by the return of active industrial policies and, in some cases, openly protectionist measures. The United States has deployed a large-scale industrial strategy through instruments such as the Inflation Reduction Act and the CHIPS and Science Act, aimed at attracting investment, reshoring productive capacity and securing technological leadership. China, meanwhile, has consolidated its position as a global industrial power through sustained strategic planning, advancing rapidly in areas such as artificial intelligence, electric mobility and renewable energy.
In this scenario, European strategic autonomy has ceased to be an abstract political objective and has become an urgent geopolitical and economic necessity. Europe must strengthen its capacity to guarantee the supply of essential goods, protect critical infrastructure and maintain control over key technologies, particularly in energy, technological and industrial supply chains.
In response, the European Union has promoted the revitalisation of industrial policy through a new strategic architecture. Notable initiatives include the Competitiveness Compass, which structures European action around innovation, decarbonisation and economic security; the European Green Deal and the Clean Industrial Deal, which integrate the climate transition as a driver of industrial competitiveness; and the reinforcement of instruments such as IPCEIs (Important Projects of Common European Interest), which allow strategic industrial projects to be financed beyond traditional state aid limits. Emphasis has also been placed on regulatory simplification and the reduction of administrative burdens as necessary conditions to accelerate industrial investment.
Within this framework, the Industry Plan – Euskadi 2030 is positioned as the Basque Government’s main strategic instrument for guiding industrial policy over the next five years.
The Plan structures its intervention around three strategic pillars — More Industry, Better Industry and Fewer Emissions — complemented by a cross-cutting axis of administrative simplification. These pillars are developed into fifteen strategic priorities aligned with European objectives of strategic autonomy, technological leadership and climate neutrality, enabling public action to be structured in a systematic and measurable manner.
One of the most relevant conceptual elements of the Plan is the definition of strategic sectors, classifying industrial sectors into three categories — IRABAZI, HAZI and JAUZI — following a rigorous, data-driven approach.
The Plan is primarily implemented through Transformative Projects, conceived as the main execution instrument of the industrial strategy. These are high-impact initiatives with a cross-sectoral vocation, based on public-private collaboration and consolidating a principle of proactive co-creation that is essential for developing innovative solutions.
From a budgetary perspective, the Plan establishes an integrated financial framework based on the coordination of public resources and the mobilisation of private investment, highlighting the Basque Financial Alliance as a key mechanism for supporting strategic industrial projects. The new Industry Plan – Euskadi 2030 will mobilise €3.9 billion for productive development, sourced from the Department of Industry, Energy Transition and Sustainability, the Basque Financial Alliance and other departments of the Basque Government.
Finally, the Plan defines a governance, evaluation and strategic adaptation model supported by indicator systems and monitoring structures, based on the principles of good administration, transparency and accountability.
Overall, the Industry Plan – Euskadi 2030 leverages the current European context as a strategic opportunity to position the regional business fabric as an essential actor in the new European industrial policy, consolidating a stronger, more innovative, sustainable and competitive industry by 2030.
