What's in a Polity? Political Institutions and Varieties of Economic Interventionism in the United States and the European Union
Bibliographic Data
| ID | 7785747 |
|---|---|
| Authors | Donato Di Carlo (0000-0002-4406-7739, European Institute London School of Economics and Political Science London UK), Laura Moretti (0000-0003-0311-8074, European University Institute), Lorenzo Moretti (0000-0003-3873-1880, European University Institute Fiesole (FI) Italy), Manuela Moschella (0000-0002-3159-9533, University of Bologna Bologna Italy) |
| Year | 2025 |
| Volume | 38 |
| Issue | 4 |
| Publication date | 2025-10-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Governance (JOURNAL) |
| Journal identifiers | ISSN: 0952-1895 • E-ISSN: 1468-0491 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/gove.70066 |
| OpenAlex | W4414621088 |
| Language | EN |
| Citations received | 7 |
| References cited | 51 |
This article examines the political foundations of industrial policy amid the return of state economic interventionism. Comparing the United States' Inflation Reduction Act (IRA) and the European Union's Green Deal Industrial Plan (GDIP), it shows that contrasting industrial policy strategies were ultimately shaped by differences in the two polities' legislative rules. In both cases, geopolitical pressures sparked renewed interest in green industrial policymaking. However, procedural mechanisms for majoritarian decision‐making in the U.S. Senate enabled the government to overcome partisan veto players and compelled the design of the IRA as a budgetary instrument centered on fiscal subsidies. By contrast, unanimity requirements in the EU's joint decision‐making system prevented the Commission from overcoming Member State veto players in the Council, precluding supranational fiscal instruments and resulting in a regulation‐based, decentralized approach via national state aid. The findings contribute to the burgeoning debates on the return of industrial policy and state activism by showing how political institutions contribute to shaping not only the scope but also the form of economic interventionism within different polities
European Union Policy and Governance · Political and Economic history of UK and US · Social Policy and Reform Studies
The New Politics of EU Industrial Policy
What’s Net‐Zero? Strategic Green Technology Identification in the European Net‐Zero Industry Act
Isomorphic Spillover and Its Limits
A Strong Regulator? The EU’s Uneven Regulatory Capacity in Green Industrial Policy
How EU industrial policy got its groove back
Regulatory Means for Interventionist Ends
Learning From the Past? EU Industrial Policy Challenges
Rational Choice Institutionalism
Mission-oriented innovation policies
The Theory of Economic Regulation
The Oxford Handbook of Political Institutions
Veto Players
Quiet Politics and Business Power
Green tech race? The US Inflation Reduction Act and the EU Net Zero Industry Act
The return of industrial policy in data
Great Transformations
Regulatory capitalism and the reassertion of the public interest
The EU as catalytic state? Rethinking European climate and energy governance
The Birth of the Old Federalism
Unexpected revolutionaries
The Joint‐decision Trap
Transforming Europe? The EU's industrial policy and geopolitical turn
Building a hidden investment state? The European Investment Bank, national development banks and European economic governance
Decarbonization under geoeconomic distress? Energy shocks, carbon lock‐ins, and Germany's pathway toward net zero
Bridging qualified majority and unanimity decisionmaking in the EU
Green macrofinancial regimes
Regulating via Conditionality
Governing through non‐enforcement
Decision Rules, Decision Styles and Policy Choices
Moving on to not fall behind? Technological sovereignty and the ‘geo-dirigiste’ turn in EU industrial policy
Europe first? The rise of EU industrial policy promoting and protecting the single market
Economic patriotism
Introduction
The Joint-Decision Trap Revisited
Sectors, Pollution, and Trade
A return of economic intervention in advanced democracies after the financial and economic crisis (2008/2009)
The power of process
Modes of regulatory governance
Institutions in Comparative Policy Research
Strategic State Capacity
Industrial Policy Revisited
Decision Making in Political Systems
The state in global capitalism before and after the Covid-19 crisis
I Disrespectfully Agree
Veto Players and Law Production in Parliamentary Democracies
How do countries shift their export specialization? The role of technological capabilities and industrial policy in Ireland, Spain and Sweden (1995-2018)
Strategies of Green Industrial Policy
| Unique citing works | 7 |
|---|---|
| Citations per year | 7 |
| Citation span | 2025 - 2026 (2) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 7 |