Versailles Declaration (March 2022): Marked a major turning point in EU policy, emphasizing the need for greater European sovereignty and resilience in the face of global challenges.
Granada Declaration (October 2023): Builds on the foundations laid by the Versailles Declaration and further outlines strategic directions, particularly in areas such as trade, critical raw materials, semiconductors, and digitalization.
Implementation of new policy instruments
Critical Commodities Act: Aims to secure the supply of critical materials, reduce external dependency and strengthen industrial strategy.
European Chips Act: Focuses on strengthening the EU’s semiconductor capacity, which is crucial for digital and technological sovereignty.
Net-Zero Industry Act: Targets sustainable industrial practices in line with the EU’s ambitious climate goals and promotes environmental resilience.
Single Market Emergency Instrument: Designed to address sudden crises affecting the single market, ensuring a rapid and coordinated response.
Strategic economic security measures
Foreign Direct Investment Screening Regulation: Updated to better screen and control foreign investment and protect sensitive sectors.
Anti-Coercion Instrument: Developed to counter economic coercion by other nation-states, reflecting an assertive stance in protecting economic interests.
5G Toolbox: A comprehensive strategy to manage and secure 5G infrastructure across the EU, reflecting the critical importance of cybersecurity.
Global Gateway Strategy: A comprehensive framework aimed at strengthening global partnerships and promoting sustainable connections, while countering initiatives such as China’s Belt and Road Initiative.
Promoting economic sovereignty
Joint Communication of the European Commission and the High Representative (June 2023): Outlines a balanced approach between minimizing risks and maintaining economic openness. This document sets the stage for a detailed action plan that prioritizes the EU’s economic security while ensuring that its markets remain competitive and dynamic.
Communication on Economic Security (January 2024): Outlines five key initiatives:
Refining FDI screening: Improving the mechanisms for monitoring and controlling foreign direct investment.
Strengthening export controls on dual-use technologies: Tightening regulations on technologies that can be used for both civilian and military applications.
Assessing Foreign Investment Risks: New guidelines for assessing the risks associated with EU investments abroad, particularly in sensitive technologies.
Promoting R&D in dual-use technologies: Promoting research in areas that enhance the EU’s strategic capabilities.
Advice on research security strategies: Developing strategies to protect critical research and development within the EU from international interference.
Coordination and cooperation
Economic Security Council proposal: Proposing the creation of a council within the Council of the European Union to focus on economic security, based on Japan’s approach to integrated economic and national security. This would potentially involve all EU member states appointing their own economic security ministers to enhance coordination and effectiveness in dealing with security-related economic issues.
The EU’s strategic response is characterized by a proactive and multi-faceted approach that seeks not only to defend against immediate economic and security threats, but also to strategically position the EU for future challenges. This approach highlights a significant shift towards greater autonomy and resilience in economic policy, reflecting a deeper understanding of the complex interdependencies that define the modern global economy. The policies and instruments implemented are designed to ensure that the EU can maintain its economic integrity, competitiveness and sovereignty in a rapidly changing global landscape.
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