"The question of Europe's declining competitiveness has long troubled the EU, but gained new urgency when painful vulnerabilities were revealed by the sudden loss of Russian gas in 2022, Donald Trump's trade wars and China's pursuit of economic dominance via huge state subsidies. Against this backdrop, the EU is considering the once-taboo policy of European preference, namely favouring European companies in strategic sectors such as clean tech. Long promoted by France, Buy European could mean imposing requirements on governments to prioritise locally manufactured goods."
"The French president, Emmanuel Macron, told European newspapers this week that European preference should be focused on certain strategic sectors, such as clean technologies, chemicals, steel, automotive and defence otherwise Europeans will be swept aside. He described European preference as a defensive measure and essential because we are facing unfair competitors who no longer respect the rules of the World Trade Organization."
EU leaders will gather in eastern Belgium to debate measures to restore Europe's economic competitiveness against the US and China amid energy shocks and trade tensions. Europe’s vulnerabilities were exposed by the 2022 loss of Russian gas, Donald Trump’s trade wars and China’s state-subsidised expansion. The EU is considering European preference to favour domestic firms in strategic sectors such as clean tech, chemicals, steel, automotive and defence. The Commission will publish an Industrial Accelerator Act setting European-content targets for products like solar panels and electric vehicles. Northern free-trade countries warn that preference rules could add regulatory complexity and deter investment.
Read at www.theguardian.com
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