Nine EU Nations Urge Caution Over ‘Buy European’ Industry Plans

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

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Image Source: REUTERS/Yves Herman

A group of nine European Union member states has called on the EU to exercise extreme caution in implementing “Buy European” strategies aimed at bolstering its industries. The nations voiced concerns over potential effects on prices, supply chains, and market competition.

The European Commission is expected to present proposals next month designed to strengthen EU industry by reducing CO2 emissions and increasing clean-tech production. Central to the proposals are requirements to prioritize locally manufactured goods, thereby decreasing reliance on Chinese imports.

France is a notable proponent of this initiative, with President Emmanuel Macron recently urging Chinese President Xi Jinping to address “unsustainable” trade imbalances, threatening tariffs if actions are not taken. Similarly, German Finance Minister Lars Klingbeil has advocated for a ‘Buy European’ policy for critical components, supported by Chancellor Friedrich Merz favoring European preference in public procurement.

Contrastingly, the Czech Republic, Estonia, Finland, Ireland, Latvia, Malta, Portugal, Sweden, and Slovakia have urged the Commission to proceed with utmost caution. Their joint position paper, seen by Reuters, recommends that any ‘Made in Europe’ approach be thoroughly assessed for its impact on prices, supply chains, and competition before enactment.

The paper suggests that an EU preference policy should only be considered when no adequate alternatives exist and should be limited to specific strategic sectors for a defined period. The group emphasized the need to avoid burdensome verification of European origin for complex products.

They further caution that proposals should not disrupt EU trade relations, stressing the importance of maintaining partnerships with like-minded countries as part of the EU’s diversification strategy. The group warns that stringent measures could hinder innovation and investment while highlighting the current insufficiency of EU companies in meeting demand across emerging sectors.