From «Buy European» to procurement: von der Leyen’s recipe for shielding European trade | EUROtoday

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BRUSSELS – Caught within the financial subject between Chinese competitors and American aggressiveness, the European Union needs to develop extra incisive types of safety of the only market. In a speech in Antwerp on Wednesday 11 February, the President of the European Commission Ursula von der Leyen introduced the presentation of latest guidelines regarding European choice each in public procurement and within the disbursement of state help.

Speaking particularly about inexperienced know-how, Ms von der Leyen defined that strengthening demand is crucial, if solely to advertise new investments. In reality, Brussels needs to make use of two levers. The first issues public procurement, which might be known as upon to favor European merchandise. The second issues European parts. Only merchandise with a minimal of European manufacturing may gain advantage from state help.

Public procurement

«Public procurement is a strong lever – stated the president -. They account for 14% of our GDP. They are an enormous monetary energy, managed by European governments. Too typically our public patrons should go for backed international merchandise, slightly than high-quality European alternate options. This is an area worth that we don’t benefit from. This facet might be one of many items of theIndustrial Accelerator Act which we are going to current on the finish of this month.”

The European preference

As for the concept of European preference, to be expressed in the disbursement of state aid or public incentives, Mrs von der Leyen announced that the European Commission intends to present proposals that provide “a selected European content material in strategic sectors”. The idea had already emerged in December when Single Market Commissioner Stéphane Séjourné announced the birth of a special category of electric car with a length of less than 4.2 metres.

The thought of ​​public procurement devoted to European manufacturing isn’t new. President von der Leyen herself spoke about it final September throughout her State of the Union speech. For years, nonetheless, it has been a substitute. It is being relaunched now at a time when the stress to guard the only market is rising by the day. Not solely in historically dirigiste nations, equivalent to France, but in addition in lots of sectors of the financial system.