For more than three decades, European institutions have been committed to opening up the markets of public services, which were traditionally managed under monopolistic arrangements within each member state. The internationalization of firms previously operating in this sector is a phenomenon that will reshape the relationships between national governments and national industry. The creation of a comparative advantage in these markets is thus emerging as a crucial issue within each national political economy. While many scholars have emphasized the role of mercantilist strategies as the most prominent strategy for the creation of national champions, others have suggested that market-building and the pursuit of industrial goals may be self-reinforcing. Adopting a firm-level analysis of the EU market for public transport, this article adds empirical evidence to the debate on the relationship between regulation and industrial policy.

Points for practitioners

This article describes the evolution of 13 European firms operating in the fields of infrastructure management and public transport services. It tries to assess the linkage between national policy styles and concrete policy outcomes at the sectorial level. Three kinds of practitioners may benefit from the knowledge of these case studies. (1) Policy-makers might have a wider understanding of the impact of regulation on firms’ strategies and the potential trade-offs related to this connection. (2) Managers might benefit from a deeper knowledge of the different national approaches to regulatory issues. (3) Stakeholders might increase their awareness of the complex mechanisms operating behind privatization processes.