On Wednesday, the European Commission unveiled a new strategy to reinforce the European Union’s sing
On Wednesday, the European Commission unveiled a new strategy to reinforce the European Union’s sing
The plan focuses on enhancing cooperation among member states and eliminating obstacles in key sectors like finance, energy, and telecommunications. It also seeks to support the growth and digital transformation of small and medium-sized enterprises, while lowering investment barriers.
The EU’s single market, established over 30 years ago, connects 26 million businesses with 450 million consumers and produces approximately €18 trillion ($20.4 trillion) annually. However, officials acknowledge that remaining regulations and costs continue to hamper trade and investment within the union.
“The current global environment demands the political determination to finally remove these barriers. It’s time to make the European market fully functional and to choose Europe,” the Commission emphasized in its strategy document.
A central commitment of the proposal is to cut around €400 million in administrative expenses annually.
Brussels also aims to encourage local companies to “buy European.”
The Commission plans to accelerate the development of unified standards for energy networks, 5G, and financial services to help companies expand across borders more efficiently.
Under the previous US administration, tariffs were imposed on steel, aluminum, and other products, heightening concerns over American dominance in advanced tech. These factors have fueled calls in Europe for stronger economic self-sufficiency.
Stéphane Séjourné, the Commission’s executive vice-president for industry and the internal market, introduced the plan. A key element is revising public procurement rules to allow national and local governments to prioritize European suppliers, excluding non-EU bidders from critical contracts.
Séjourné referred to this as a “Buy European Act,” aiming to balance openness with pragmatism. “We want to remain an exporting continent while being realistic and less naive about strategic sectors,” he said.
If EU nations approve the plan next year, they could reject bids from foreign companies on public projects such as infrastructure and digital services—a significant shift from current EU and WTO rules that prohibit favoring local providers.
Proponents argue that blocking lower-cost competitors from China and elsewhere will protect vital industries, while critics caution it could provoke WTO disputes and retaliation.
Séjourné, a former French foreign minister and close Macron ally, has long advocated for greater European autonomy. He described the procurement change as just the beginning, with further scrutiny of private sector deals based on safety and economic security to follow.
Digital sovereignty is another priority for the EU.
Regulators are preparing new rules for the cloud computing sector, dominated by US giants like Amazon, Microsoft, and Google. These regulations are expected to include “buy European” components similar to those in the current plan.
While Séjourné didn’t specify industries, he stressed urgency in reducing dependence on single foreign sources: “In tech, we rely heavily on Americans. For raw materials, we’re entirely dependent on China. Given the geopolitical climate, future generations shouldn’t blame us for inaction.”
Despite difficulties, Séjourné sees opportunities. The EU economy has faced setbacks from the COVID-19 pandemic and the energy crisis triggered by Russia’s 2022 invasion of Ukraine. Businesses complain about high costs from climate policies, cheap Chinese imports, and US tariffs squeezing profits.
Still, Séjourné believes Europe is in an “almost ideal” position because “the Americans remain partners and the Chinese seek stronger ties.” With careful diplomacy, he thinks the EU can address many challenges with China across various sectors.
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