ContextOpening Remarks by OECD Secretary-General Mathias Cormann on the occasion of the 2026 OECD Ministerial Council Meeting in Paris, France, on 3 June 2026.
Why it mattersThe OECD's yearly ministerial meeting sets the tone for rich-country economic policy; this opening warns against industrial policy turning into trade conflict.
- Industrial policy can distort markets and crowd out private investment.
- It can trigger costly trade conflicts.
- Some economies have let competitiveness gaps widen.
- Design industrial policy carefully to support growth.
- Stay committed to open markets and rules-based trade.
- Close productivity gaps to avoid disorderly adjustment.
Read the speech summary
1. A pressured economy and the return of industrial policy
Opening the OECD's 2026 ministerial council on getting industrial policy right, Secretary-General Mathias Cormann said the day's Economic Outlook shows global growth falling and inflation rising because the Middle East conflict disrupted energy and commodities, with fertiliser prices up and supply chains tested again, on top of low productivity growth, a fraying trading order, inequality, ageing and the investment needs of digital and climate transitions. Industrial policy has returned strongly, so the issue is how to act wisely, since it may boost growth, innovation and resilience, yet it may also warp markets, displace private capital, strain budgets and trigger costly trade disputes. Good policy works with markets and open, rules-based trade.
2. Imbalances and subsidies
Widening global imbalances need coordinated adjustment: deficit economies need to lift saving and cut spending, while surplus economies need to raise consumption and curb exports, and they should move from distorting subsidies to market-based approaches. The OECD's new MAGIC database tracks firm-level industrial subsidies in 15 sectors and 525 companies: support is widespread, mostly modest relative to revenue but significant for profit margins, and Chinese firms get substantially more, mainly through below-market borrowing from state-controlled banks, which has contributed to imbalances and strong positions in critical supply chains, a systemic risk.
3. Good policy and a second term
Good industrial policy starts with productivity: less red tape, skills, research, infrastructure and the digital and energy transitions. It also needs partners, because supply chains, AI, critical minerals and clean energy cannot be secured alone, while preserving developing economies' access to open markets. He urged pragmatism and compromise and, marking the start of his second term, listed priorities: productivity, fairer and more resilient trade, AI governance, climate best practice, enlargement and modernisation, calling the issue a trial of the open, market-driven model's ability to win out.