Steven will discuss the European Union’s evolving transition from a regulatory to a more interventionist approach to governance, characterised by the European Green Deal and Industry 5.0. This new industrial vision promotes human-centricity, resilience, and sustainability, moving away from the mass production mindset of Industry 4.0.

Although there is mounting political resistance to green and social regulation, notably in the US, evidence shows that ESG performance positively influences corporate financial performance. The skilled labour and tacit knowledge embedded within the European workplace are recognised as unique resources that can drive competitive advantage. Worker empowerment and autonomy are key to unlocking productivity, especially from digital technologies, whilst green investments often yield high returns through learning effects and service innovation. Steven will explore the importance of integrating human-centric principles into industrial policy and the potential of workplace-oriented policies to enhance international competitiveness, necessitating the design of tools that deliver these outcomes more widely.

Five years after its introduction, Industry 5.0 stands as a call to reimagine both industrial policy and the nature of work in Europe. It is up to us to ensure that the human factor becomes central—not only in theory, but in practice.