The End of Passive Statehood: Industrial Policy Resurgence (eco.sapo.pt)

• Shift from deregulation to proactive state industrial management
• Strategic investment replacing passive macroeconomic oversight
• Tensions between fiscal discipline and sovereign capacity

"The global economic pendulum has swung away from market non-interventionism towards proactive state industrial policy. Significant public capital is now being directed into strategic sectors via programs like the US Inflation Reduction Act and the EU's Net-Zero Industry Act. This shift reflects a new prioritization of sovereignty and climate transition over traditional budget austerity. The analysis suggests that the modern state is transitioning into an 'active investor,' raising fundamental questions about the long-term sustainability of debt-fueled industrial strategy and the viability of state-managed economic outcomes."