Industrial policy in the European Common Market

Abstract

While the Rome Treaty provides various provision with regard to industrial policy, it does not consider the interrelationships among them, nor does it contemplate the measures that would need to be taken to remove existing obstacles to the intra-EEC movement and merger of firms. The present paper considers the measures necessary for removing existing obstacles to the full exploitation of the advantages of the large market created by the EEC’s establishment. It examines the issues related to establishing a common technological policy and the implications these actions will have on competition in the Common Market. In connection with this issue, the requirements of a balanced policy between encouraging and restraining concentration are discussed.

JEL: F15, E61, L52