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The European Green Deal and «Fit for 55» package demonstrate the commitment of the European Union (EU) to become climate-neutral by 2050. However, a strategy based solely on climate targets falls short without addressing economic and social sustainability. This article outlines principles, measures, and recommendations for a green industrial policy that can ensure the success of the green transition in the EU.

Despite intense study as an attractive model for adjustment to slower worldwide growth and increasing competition from low-wage producers, the sources of German institutional comparative advantage remain controversial, particularly with regard to the role of the national state. This paper argues that the national state plays a key -- though mainly indirect -- role in supporting the modernization of industry. On the one hand, the national regulation of labor markets has discouraged price competition and imposed a "productivity whip" on companies; on the other hand, through the supply of resources to sub-national and sectoral actors, the federal government has supported the investments in skills, R&D and capital equipment needed for industrial modernization. This support of an institutional infrastructure is particularly important for the large and modern SME sector (the Mittelstand). The 1990s illustrate both the continued success of this infrastructure in supporting adjustment and the ultimate dependency of these institutions on strong domestic political support and adequate international demand for high quality, medium-tech products. ; Die institutionellen Regelungen in Deutschland wurden als ein attraktives Modell fürdie Anpassung an das langsamere weltweite Wirtschaftswachstum und denzunehmenden Wettbewerb durch Länder mit Niedriglohnniveaus bereits umfassend analysiert. Trotzdem bleiben die Ursachen für den durch seine Institutionenbedingten Vorteil Deutschlands kontrovers, vor allem im Hinblick auf die Rolle der Regierungspolitik. In diesem Diskussionspapier wird die Meinung vertreten, daß die Bundesregierung eine - wenn auch hauptsächlich indirekte - Schlüsselrolle bei beider Unterstützung der Modernisierung der Industrie spielt.Auf der einen Seite hat die bindende Regulierung der Arbeitsmärkte eine Billiglohnkonkurrenz verhindert und wie eine "Produktivitäts-Peitsche" auf die Unternehmen gewirkt; auf der anderen Seite hat die Bundesregierung durch Subventionierung an Unternehmen Investitionen in Weiterbildung, Forschung und Entwicklung und Kapitalausstattung zur Modernisierung der Industrie gefördert. Diese Unterstützung durch eine institutionelle Infrastruktur ist besonders für dengroßen und modernen Mittelstand wichtig. Die neunziger Jahre zeigen sowohl den fortdauernden Erfolg dieser die notwendigen Anpassungsprozesse unterstützenden Infrastruktur als auch ihre völlige Abhängigkeit von starker politischer Unterstützungund einer ausreichenden internationalen Nachfrage nach qualitativ hochwertigen Produkten eines mittleren technologischen Niveaus.

The differences registered in the early 90s between the economy of the European Union as compared to the economies of the United States and Japan, in regards of growth rates, investment rates, R&D and innovation, international trade, etc., as well as the fast changes of the world economy determined the European Commission to issue the white paper on "Growth, Competitiveness and Employment", underlining the meaning of the European economy's competitiveness in the new conditions, and the legal frame for EU's industrial policy was settled through the Treaty of Maastricht. The document was setting theobjectives, priorities and the six basic principles of the European industrial policy, in a unitary concept. In the spring of 2000, the European Council from Lisbon sets the objective of transforming the European Union in the most dynamic and competitive economy of the world, and, therefore, foresees a working agenda with specific actions going until the horizon of 2009. In December 2002, after EUs enlargement, the Commission forwards to the Council the document titled "Industrial Policy in an Enlarged Europe", in which theindustrial development at the moment of new member states integration is analyzed, as well as the effects of EU's enlargement over the industry, and it suggests actions for the future development of the sector. The industrial policy of the EU must offer solutions for industrial development, by answering the challenges concerning globalization, the technological and organizational changes, the increasing role of innovation and entrepreneurship, and the sustainable development taking into consideration the new socialrequirements. The development objectives set at European level cannot be reached without a tight interconnection of the industrial policy measures with those of some complementary policies, such as thecommercial policy, the single market policy, transport and energy policies, research and development policies, competition policy, regional and macroeconomic policies.