Reshaping Europe’s industrial future: the impact of the new political landscape on industrial policy and competitiveness in five CEE countries
Reshaping Europe’s industrial future: the impact of the new political landscape on industrial policy and competitiveness in five CEE countries

Summary/Abstract: Amid the rising geopolitical tensions between the EU’s states, a tendency towards radicalism and protectionism in Western countries, and an increase in interest in nationalistic autonomy, there is a pressing need for a new direction. Recent developments, such as the Green Deal Industrial Plan, the Net-Zero Industry Act and the European Chips Act, raise questions about their effectiveness in strengthening Europe’s industrial base and resilience. This article examines the impact of political shifts on industrial policy and competitiveness in Central and Eastern Europe, with a three-year period (2022-2025) of data following key indicators (GDP growth, FDI, R&D, education, innovation indices) from five CEE countries (Poland, Czech Republic, Hungary, Romania, Slovakia). The study, therefore, addresses the under-explored gap between EU industrial ambitions and national absorptive capacity and competitiveness. The findings highlight diverging approaches: while Czech Republic and Poland benefit from innovation and stability, Hungary offsets slow growth with massive but strategically dependent FDI. It suggests that without stronger governance reforms, targeted investment in human capital and regionally tailored implementation of EU industrial instruments, the transitions may reinforce a ‘Two-Speed’ industrial Europe rather than closing existing gaps.

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