According to a report in the Financial Times, Brussels has taken this step due to the declining competitiveness of local businesses, which are suffering from high energy prices and heavy red tape.
The main aim of the new strategy is to increase the share of industrial production in the EU’s GDP from the current 14 per cent to 20 per cent by 2035. To achieve this target, the EU authorities plan to introduce several stringent measures at once:
- Restricting access to public procurement. Foreign companies will be barred from participating in public tenders and denied access to state subsidies in strategic sectors.
- The ‘Made in Europe’ Act. Under the Industrial Accelerator Act, companies from countries outside the EU single market may be excluded from key production chains.
- Reducing dependence on imports. The new DiversifyEU programme aims to reduce Europe’s dependence on supplies of semiconductors, pharmaceutical raw materials and critical minerals from China, the US and India. European businesses may be legally required to seek alternative suppliers.
- Emergency blocking of goods. Brussels is developing a mechanism that would, in emergency situations, completely block access for Chinese products to the EU market in order to reduce the huge trade deficit.
However, European industry itself is treating the initiative with caution. Business representatives warn that if imports are sharply restricted, local companies may simply run out of European raw materials and components needed to continue operations.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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