Brussels wants to allow governments to exclude foreign bidders and “buy European” in a move echoing Donald Trump’s “America First” policy that could break international agreements with trading partners.
The European Commission “will propose the introduction of a European preference in public procurement for critical sectors and technologies”, according to a draft plan obtained by the Financial Times.
Officials say the aim is to give governments a way to protect important EU sectors from cheaper competitors from China and elsewhere. The proposal, which aims to implement reforms championed by Italy’s former prime minister Mario Draghi, is still under discussion and could change before it is published on Wednesday, they said.
The latest initiative comes as the US president directs his administration to prioritise domestic purchases.
“The loss of European-based production capacities and knowhow in critical sectors could leave the EU dangerously dependent on imports in key segments of the economy,” the proposal says.
“In a context where other major players impose access restrictions to their markets and seek to boost manufacturing capacity in critical technologies, Europe must safeguard its own capacities.”
Stéphane Séjourné, the French EU commissioner for industrial strategy, has said that measures such as the revision of public procurement and state aid rules are part of Brussels’ effort to “translate the European doctrine into action”.
The commission wants to revise the public procurement directive next year, which dictates that all contracts “must treat all applicants equally and not discriminate between them”.
The EU is also a signatory to the government procurement agreement at the World Trade Organization, which states that measures “should not be prepared, adopted or applied so as to afford protection to domestic suppliers, goods or services, or to discriminate among foreign suppliers, goods or services”.
If approved by member states, the Europe first policy would be a remarkable volte face. It threatened action against China this month for unfair discrimination against EU companies in the medical device market.
The bloc in 2022 launched a legal case against the UK at the WTO when it consulted on giving preferential access to domestically manufactured wind turbines in subsidy schemes.
“This violates the WTO’s core tenet that imports must be able to compete on an equal footing with domestic products,” the commission said at the time. London backed down.
If the proposal survived it would signal a victory for France, which has led calls to go further with “strategic autonomy” including favouring local companies.
The leaked “Competitiveness Compass” document proposes to cut the administrative burden on EU businesses by 25 to 35 per cent, as previously announced. But it sets no baseline for the calculation.
But it also outlines almost 40 new acts, action plans and sectoral strategies.
Among them are a Biotech Act, a Space Act, a Critical Medicines Act and a Chemicals Industry Package, as well as measures to streamline the EU’s disparate national tax and labour laws.
All aim to boost EU research or protect domestic businesses.
“In a global system where geopolitical tensions, competition for technological supremacy and the scramble for control over resources are on the rise, Europe’s freedom, security and autonomy depend more than ever on its ability to innovate, compete and grow,” the paper says.
mertseger67 on
Yes no more Tesla, Apple, …buy EU or asian.
Stabile_Feldmaus on
Hell yeah😎🇪🇺🇪🇺
ukbeasts on
Let’s call the Atlantic ocean, the Mediterranean Ocean
No-Confidence-9191 on
Poland: best I can do is spending 184739263 quadrillion on South Korean and US arms
labegaw on
It’s so funny how basically everyone wants to be Trump.
Generic_Person_3833 on
When you can’t sell any other way, nationalism always sells.
DanishMan45 on
Only way to go! Good bye, fascists!
14_In_Duck on
yeah nah thanks.
sisali on
So let me get this straight, the EU sues other countries for favouring domestic industry like the UK, but want to do it themselves because they know they can’t compete with US and Chinese firms?
What am i missing here?!? The irony of complaining about Trump and then doing this is funny to me.
Edit – the downvotes prove Europe is no better than Trump and the US. at least he does not pretend to be a scumbag.
Apprehensive-Ad186 on
Well maybe you should let europeans buy and create stuff without you regulating and taxing them into oblivion
Fallkot on
This is the way. Also invest in STOXX 600 instead of SP 500 (or at least add it to the mix)
dat_9600gt_user on
I don’t think that’s what Trump intended.
Good for us all though!
bbbar on
I still don’t understand why US companies such as Amazon and Ebay are selling Chinese products in the EU?
This is not how globalization should look like
Due_Ad_3200 on
Is the answer to American protectionism to embrace European protectionism?
Adriyannos on
Make Europe Great Again
PxddyWxn on
Make it affordable then
DefInnit on
Poland can buy what they decide to buy but they would be a massive hypocrite if they try to be part of discussion on Buy European in defense.
leaflock7 on
buy European what? the things that we don’t produce?
or support corrupted ones that are also more expensive (yes VW it is you I am looking at, among others).
no thanks
Jonas_Svensson on
What!? No! The American military needs our money to invade Greenland!
wileyfox91 on
I would buy but often made in Europe is just esambled in Europe ….
hype_irion on
So, basically we wasted a whole lot of time just to end up doing what France has been saying we should be doing for decades?
SLUIS0717 on
Buy Canadian too please LOL
itsadiseaster on
Poland why did you buy 400 tanks from usa and 188 from s. Korea? You could buy from germany and have them by the mid century! You would save so much in the maintenance since most of these already arrived in your ports.
ComprehensiveTill736 on
And why not? I support this
Visible_Bat2176 on
Just agree to some big european transnational companies. It will be enough. Do no not squeeze them, break them into different companies, regulate them like hell, tax them like crazy…antitrust is good if other competitors do it, too, if not, it is just crippling your industry unnecessary! And make a tax free tech zone like HongKong, Singapore etc with young people…
26 commenti
Brussels wants to allow governments to exclude foreign bidders and “buy European” in a move echoing Donald Trump’s “America First” policy that could break international agreements with trading partners.
The European Commission “will propose the introduction of a European preference in public procurement for critical sectors and technologies”, according to a draft plan obtained by the Financial Times.
Officials say the aim is to give governments a way to protect important EU sectors from cheaper competitors from China and elsewhere. The proposal, which aims to implement reforms championed by Italy’s former prime minister Mario Draghi, is still under discussion and could change before it is published on Wednesday, they said.
The latest initiative comes as the US president directs his administration to prioritise domestic purchases.
“The loss of European-based production capacities and knowhow in critical sectors could leave the EU dangerously dependent on imports in key segments of the economy,” the proposal says.
“In a context where other major players impose access restrictions to their markets and seek to boost manufacturing capacity in critical technologies, Europe must safeguard its own capacities.”
Stéphane Séjourné, the French EU commissioner for industrial strategy, has said that measures such as the revision of public procurement and state aid rules are part of Brussels’ effort to “translate the European doctrine into action”.
The commission wants to revise the public procurement directive next year, which dictates that all contracts “must treat all applicants equally and not discriminate between them”.
The EU is also a signatory to the government procurement agreement at the World Trade Organization, which states that measures “should not be prepared, adopted or applied so as to afford protection to domestic suppliers, goods or services, or to discriminate among foreign suppliers, goods or services”.
If approved by member states, the Europe first policy would be a remarkable volte face. It threatened action against China this month for unfair discrimination against EU companies in the medical device market.
The bloc in 2022 launched a legal case against the UK at the WTO when it consulted on giving preferential access to domestically manufactured wind turbines in subsidy schemes.
“This violates the WTO’s core tenet that imports must be able to compete on an equal footing with domestic products,” the commission said at the time. London backed down.
If the proposal survived it would signal a victory for France, which has led calls to go further with “strategic autonomy” including favouring local companies.
The leaked “Competitiveness Compass” document proposes to cut the administrative burden on EU businesses by 25 to 35 per cent, as previously announced. But it sets no baseline for the calculation.
But it also outlines almost 40 new acts, action plans and sectoral strategies.
Among them are a Biotech Act, a Space Act, a Critical Medicines Act and a Chemicals Industry Package, as well as measures to streamline the EU’s disparate national tax and labour laws.
All aim to boost EU research or protect domestic businesses.
“In a global system where geopolitical tensions, competition for technological supremacy and the scramble for control over resources are on the rise, Europe’s freedom, security and autonomy depend more than ever on its ability to innovate, compete and grow,” the paper says.
Yes no more Tesla, Apple, …buy EU or asian.
Hell yeah😎🇪🇺🇪🇺
Let’s call the Atlantic ocean, the Mediterranean Ocean
Poland: best I can do is spending 184739263 quadrillion on South Korean and US arms
It’s so funny how basically everyone wants to be Trump.
When you can’t sell any other way, nationalism always sells.
Only way to go! Good bye, fascists!
yeah nah thanks.
So let me get this straight, the EU sues other countries for favouring domestic industry like the UK, but want to do it themselves because they know they can’t compete with US and Chinese firms?
What am i missing here?!? The irony of complaining about Trump and then doing this is funny to me.
Edit – the downvotes prove Europe is no better than Trump and the US. at least he does not pretend to be a scumbag.
Well maybe you should let europeans buy and create stuff without you regulating and taxing them into oblivion
This is the way. Also invest in STOXX 600 instead of SP 500 (or at least add it to the mix)
I don’t think that’s what Trump intended.
Good for us all though!
I still don’t understand why US companies such as Amazon and Ebay are selling Chinese products in the EU?
This is not how globalization should look like
Is the answer to American protectionism to embrace European protectionism?
Make Europe Great Again
Make it affordable then
Poland can buy what they decide to buy but they would be a massive hypocrite if they try to be part of discussion on Buy European in defense.
buy European what? the things that we don’t produce?
or support corrupted ones that are also more expensive (yes VW it is you I am looking at, among others).
no thanks
What!? No! The American military needs our money to invade Greenland!
I would buy but often made in Europe is just esambled in Europe ….
So, basically we wasted a whole lot of time just to end up doing what France has been saying we should be doing for decades?
Buy Canadian too please LOL
Poland why did you buy 400 tanks from usa and 188 from s. Korea? You could buy from germany and have them by the mid century! You would save so much in the maintenance since most of these already arrived in your ports.
And why not? I support this
Just agree to some big european transnational companies. It will be enough. Do no not squeeze them, break them into different companies, regulate them like hell, tax them like crazy…antitrust is good if other competitors do it, too, if not, it is just crippling your industry unnecessary! And make a tax free tech zone like HongKong, Singapore etc with young people…