A NEW INDUSTRIAL POLICY IN THE EU: IN SEARCH FOR A NEW PARADIGM OF PUBLIC INTERVENTION 1 Elżbieta Kawecka-Wyrzykowska* Introduction For a long period after World War II, an increasing share of services in GDP (at the expense of a decreasing proportion of manufacturing/industry 2 ) was considered a posi- tive aspect of economic growth. It was assessed as a reflection of ‘modern’ growth. Since the financial and economic crisis of 2008–2009, this opinion has radically changed. The global crisis showed that markets were incapable of overcoming problems. The stagnat- ing or even declining share of manufacturing in GDP in some countries and deteriorated international competitiveness of the sector, as well as high rates of unemployment, became a source of worries for policy makers in the EU (and in other countries). They started to argue for an increased importance of industry and the need for a greater role of public support on the grounds that enhanced industry would create growth and * Elżbieta Kawecka-Wyrzykowska, Professor, PhD, SGH Warsaw School of Economics, Collegium of World Economy, e-mail: ekawec@sgh.waw.pl, ORCID: 0000-0002-6655-874X. 1 I would like to express my thanks to Prof. Adam A. Ambroziak for his helpful comments. The paper has been prepared in the framework of statutory research No. KGS/S19/12/2019, conducted at the Collegium of World Economy of the Warsaw School of Economics. 2 The two terms are not identical. The notion of ‘industry’ is broader than that of ‘manufacturing’ and also includes, inter alia, mining, water supply, electricity, waste management. In this paper, the terms ‘manu- facturing’ and ‘industry’ are used synonymously. 1