AbstractFollowing a decade of strong development of plastics consumption, the European market and the production of European manufacturers have fallen back into stagnation since the oil crisis of 1973, followed by the second oil‐price explosior. of 1979. The author presents the reasons of the economic recession prevaling in the European plastics industry for a number of years, notwithstanding the temporary upsurge of 1979, in a review of aspects relative to internal economic government policies in Europe, relative to external trade and relative to the Community's policies towards Third World countries. Prospects for the European plastics industry are considered as a function of economic and industrial government policies in Europe, of development in third countries, and of new approaches by the European industry. The various aspects considered are illustrated in particular by the case of PVC, a typical representative of the major plastics reviewe