Protectionism and industrial sovereignty

Recent crises (pandemics, the invasion of Ukraine) and rising geopolitical tensions have brought the issues of strategic autonomy and industrial sovereignty to the forefront of economic policy. First and foremost, we need to reconsider the balance between reducing costs and insuring against risks, which gives rise to reshoring, friendshoring or diversification of sources. But in the fields of green transition, healthcare and new technologies, we also need to revisit the age-old question of infant industries. This question is now posed in terms of externalities (increasing returns) not taken into account in the private calculation of firms, but which must be considered from the point of view of the benefits of the presence of industries for society as a whole. The Inflation Reduction Act (IRA) is emblematic of this point of view, as is the loosening of constraints on public subsidies at European level. How should we analyze the rise in protectionist tensions fuelled by this orientation of economic policy?