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Brussels presents plans to revive EU industry

Published: (Updated: ) in European News by .

Analysis of ‘strategic dependencies’ singles out 137 products, more than half of them coming from China.

The European Commission Wednesday laid out its vision for the bloc’s manufacturing sector, putting the accent on securing autonomy in key supply chains.

The pandemic made Europe painfully aware of its reliance on imports for key components like active pharmaceutical ingredients and microchips, with shortages crippling entire sectors for weeks.

“One of the key lessons of the crisis is to get a better grasp of Europe’s current and possible future strategic dependencies,” and the need to address them through “facts-based, proportionate and targeted policy measures,” the Commission wrote in its industrial strategy update.

It carried out an analysis of Europe’s “strategic dependencies,” as requested by EU leaders in October, singling out 137 products for which Europe is highly dependent on imports, over half of which come from China, and a subset of 34 items — raw materials like diamonds and rare earth minerals and pharmaceuticals — for which Europe has “low potential for future diversification and substitution with EU production.” For these, the goal will be to use recycling and innovation to lessen reliance on imports.

Brussels also issued an in-depth needs analysis of 14 so-called industrial ecosystems, pointing out investment gaps and options for policy support, and a case study on the steel sector‘s decarbonization challenge, suggesting to use trade defense instruments and a carbon border levy to shelter it from dumping, as well as subsidies for clean steel.

The Commission also is proposing to launch four new industrial alliances in the fields of space launchers, zero emission planes, cloud technology, and processors and semiconductors.

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Source: POLITICO https://www.politico.eu/article/brussels-presents-plans-to-revive-eu-industry/?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication

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