a Bloomberg The well-known proposal also proposes creating a fund that would support the development of technologies for military and civilian use. The move comes in response to the vulnerabilities exposed by the coronavirus outbreak and Russia's actions in Ukraine, which highlight the EU's exposure to supply chains.
The EU strategy seeks to address risks to economic security, emphasizing the need to protect imported technological supplies and prevent competitors from controlling strategic industries.
Critical technologies identified include chip manufacturing, artificial intelligence, quantum technologies, and biotechnologies.
The package includes initiatives such as strengthening regulations for foreign direct investment, harmonizing export controls, supporting research in dual-use technologies, enhancing research security, and developing a new tool to control sensitive knowledge leaking to enemy countries.
The economic security package is based on the European Union's efforts to become a strong global player and a superpower in addition to supporting multilateralism. In the economic competition against China and the United States, Brussels is focusing on independence from China, rather than full independence. Tensions with Washington over tariffs and competition over resources highlight the EU's determination to diversify its supply chains through its trade instruments.
EU Trade Commissioner Valdis Dombrovskis expects 2024 to be a challenging year as ongoing conflicts could disrupt international trade and supply chains.
Cover image source: European Union
