Brussels: The European Commission, alongside the High Representative, has unveiled a Joint Communication aimed at bolstering economic security in the European Union. This initiative outlines specific measures to enhance the EU’s resilience against external economic threats, while maintaining an open stance towards international trade and investment.
According to Cyprus News Agency, the Joint Communication builds upon the 2023 Economic Security Strategy, which established key objectives for promoting industrial strength, safeguarding European interests, and collaborating with countries that share similar values. The EU plans to address risks by utilizing existing tools, regardless of their original intent, and by deploying its resources proactively when necessary. The strategy emphasizes the improvement of informational and analytical capabilities to aid decision-making and enhance coordination with EU Member States and businesses.
The communication signifies a shift from a reactive approach to a proactive and systematic use of tools. The EU aims to be strategic in leveraging its economic influence and the access to its Single Market. The measures outlined are designed to be targeted and proportionate, focusing on specific high-risk scenarios. The EU, its Member States, and businesses are expected to accept the economic costs associated with increased security and resilience.
The Commission has identified six priority high-risk areas for immediate focus: reducing dependencies on strategic goods and services, attracting safe investment, supporting critical industrial sectors like defence and space, ensuring leadership in critical technologies, protecting sensitive information and data, and safeguarding Europe’s critical infrastructure.
The EU’s effectiveness in addressing economic security will be bolstered by a strategic and coordinated use of its tools, including new guidelines for foreign direct investment (FDI) screening and prioritizing funding for projects that reduce dependencies. Enhanced risk assessment and information sharing with Member States and stakeholders will be key to promoting a common understanding of economic security risks and timely intervention.
In addition to existing measures, the EU is developing new tools to address current gaps in economic security. The newly launched ResourceEU program is a flagship proposal focusing on reducing Europe’s overreliance on foreign suppliers for critical raw materials and semiconductors. Other initiatives in the pipeline include the SAFE Regulation, Industrial Accelerator Act, and CHIPS 2.0 Act, among others.
The EU recognizes that economic security challenges are not unique to Europe and plans to increase cooperation with trusted international partners, promote common security standards, and potentially undertake joint actions to tackle significant challenges.
The Commission is prepared to implement necessary legislative changes and guidelines to actualize the actions outlined in the Joint Communication. It plans to continue engaging with Member States, third countries, and stakeholders to advance the new economic security strategy.