Evolution of the political and economic role of the state and change of strategic priorities (using the example of the European Union)

Growing instability in world politics affects the economy, imposes new functions on the State, and changes traditional ones. The article presents a panorama of the evolution of the State’s political and economic role characterized by increasing demands on the quality of State institutions and human capital at various stages of society development. This article comprises four sections. The introduction highlights the economic activity with an emphasis on the support and participation of the State in strategic industries that promote scientific and technological progress. The first section is devoted to the historical perspective of the State’s role in the economy, showing the change in priorities in State economic policy and the erroneous idea of trade and investment relations as a panacea for international conflicts. The aggravation of contradictions – both economic, related to competition in global markets, and political in the field of international security – requires strengthening various forms of State support for high-tech industries, primarily those analyzed in the second section – defense and space. Often the resources of only States are not enough to ensure competitiveness, interstate cooperation is required. The task of the third section is to study the policy aimed at adapting key industries to the environmental agenda requirements. The State’s participation takes various forms, including subsidies, public procurement, and lending. The fourth section considers the coordination of industrial policy and its innovative component. The political and economic vectors of the EU’s development attract attention of States, determine the need for cooperation and joint actions with supranational bodies in connection with the aggravated problem of the association lagging behind other world centers of influence and competitors in the world markets. Digital transition, green energy, and in general the attempt to reindustrialize the EU and its member States are the most pressing areas, the development of which in the EU is associated with stimulating economic growth, increasing competitiveness, and achieving strategic autonomy. A conclusion is made about the doubtfulness of success both due to the incomparable financial and resource EU’s capabilities and its main rivals, the USА and China, and for political reasons – friction within the EU.