EU unveils economic security measures amid global tensions
The EU announces plans to strengthen its economic security, focusing on safeguarding sensitive technology from potential geopolitical adversaries
The European Union revealed comprehensive plans on Wednesday aimed at fortifying the bloc’s economic security, with a focus on safeguarding sensitive technology from potential geopolitical adversaries, notably China.
The move follows heightened concerns over European economic stability in the aftermath of Moscow’s invasion of Ukraine and escalating global trade tensions. The EU, grappling with the aftermath of the war in Ukraine, is determined to diversify its energy sources, steering clear of over-reliance on China, a dominant force in green technology production and critical raw materials.
EU officials outlined a robust economic security package comprising five key initiatives. Among them, a proposal to toughen rules on screening foreign direct investment (FDI) and the initiation of discussions on coordinated efforts in the realm of export controls.
Amid the backdrop of an evolving global landscape transitioning toward clean technology, the EU has already set forth new rules to maintain competitiveness and bolster local production.
“In this competition, Europe cannot merely be the playground for bigger players; we need to be able to play ourselves,” emphasized Margrethe Vestager, the EU’s senior competition official, during a press briefing in Brussels. “By implementing our proposals, we can de-risk our economic interdependencies.”
Wednesday’s package is a part of the EU’s strategic focus on de-risking without completely decoupling from China, a stance strongly advocated by European Commission President Ursula von der Leyen.
“The change in EU-China relations has been the driving force behind this embrace of economic security, which is something extremely new for the EU,” noted Mathieu Duchatel, director of international studies at the Institut Montaigne think tank.
EU officials dismissed claims that the package had been diluted and asserted that the initiatives were not too late to take effect. One of the proposals is to revise the EU’s regulation on screening FDI, while others call for ongoing discussions, raising concerns about the potential delay in implementation.
The EU aims to focus on riskier transactions and allocate fewer resources to low-risk ones, according to Valdis Dombrovskis, the EU’s trade commissioner. Balancing the delicate act of respecting national sovereignty over investment and export control decisions, the commission hopes to avoid overstepping its jurisdiction.
The package also recommends scrutinizing outbound investments, an area currently lacking regulation within the bloc, with fears that investments in advanced technologies could potentially augment military and intelligence capacities, posing threats to international peace and security.
Source: AFP
