Abstract
The industrial policy measures provided for in the coalition agreement do not follow any clearly recognisable strategy. However, in order to be fully effective, the federal government can take corrective action based on three key conditions for success: First, there needs to be a clear definition of objectives – in other words, transparency about which industries are to be promoted and for what economic policy reasons. Secondly, it is crucial to use effective instruments and proceed on the basis of comprehensible performance targets when implementing these measures. Thirdly, industrial policy should be embedded in market-based competitive mechanisms and coordinated at European level in order to maximise efficiency and effectiveness.