PERSPECTIVE Ecological industrial policy as a key element of a sustainable economy in Europe Matthias Machnig Dezember 2011 n So far, Germany has come rather successfully through the recent period of global economic crisis. The strong position held by manufacturing has been an important factor in this. High levels of balance of trade surpluses show the potential of an eco­nomic strategy based on industry and industry-related services. n Also Germany is confronting the task of a reorientation of the structure of its indus­try. Only economies which adjust in time to the challenges of climate change and the necessity for energy- and resource-efficiency will prosper in future. n Those wishing to profit from the enormous growth potential of green technologies, must now set the course for the development of an ecological industrial policy. A new model of progress for a third industrial revolution is needed. n The German Social Democratic Party(SPD) has, during its time in office, provided major impetus for resource efficiency and an ecological industrial policy. It has used a broad set of policy tools, ranging from economic incentives and price signals to classical regulatory law.