The fifth volume in the European Public Investment Outlook series explores how Europe can drive structural transformation through strategic public investment. Reflecting on the lessons from the 2008–2020 polycrisis and recent economic challenges, this timely book examines fiscal policy's role in both stabilization and long-term economic development. Part I, 'State of the Art', reviews current public investment and industrial policies in major European economies, including France, Germany, Italy, and Spain. It provides detailed analyses of each country's approach to fostering structural transformation through public investment. Part II, 'Challenges', addresses the diverse obstacles and opportunities facing Europe's industrial policy. It emphasizes a multidimensional strategy to overcome bottlenecks in key sectors and drive transformation. Topics include the role of industrial policy in the green transition, creating a cohesive strategy for Europe, enhancing economic security, trends in European Union defence spending, sustainable mobility, and financing structural investment beyond 2027. This volume is essential reading for researchers, economists, and policymakers focused on understanding and implementing effective public policy in Europe, and will further appeal to anyone interested in EU governance and public investment strategies more broadly.