Here are the three pillars of the EU strategy for economic security

We publish large excerpts from the joint communiqué on European economic security published today.

The global pandemic, Russia’s illegal and unprovoked war in Ukraine, hostile economic actions, infrastructure and cyber attacks, interference and disinformation, and rising global geopolitical tensions have laid bare risks and vulnerabilities of our societies, economies and businesses that did not exist a few years ago. In recent years, the European Union has succeeded in advancing its priorities and, at the same time, addressing its vulnerabilitiesbe it energy security, pandemic preparedness or, more broadly, the resilience of our economies, supply chains and key technologies. However, this experience has also revealed that Europe is, in some cases, not sufficiently prepared to face new and emerging risks that have emerged in the more difficult geopolitical context in which we find ourselves. The COVID-19 pandemic has highlighted the risks that supply chains can pose to the functioning of the European economy. Russia’s war of aggression against Ukraine has demonstrated that over-dependence on a single country, especially one with systemically divergent values, models and interests, narrows Europe’s strategic options and puts our economies and citizens at risk . Member states and businesses have also had to bear the cost of economic coercion, including export bans and boycotts of European brands, to force them to conform to another country’s political priorities. All of these trends pose a direct risk to the functioning of our societies, economies and global trade, as well as a direct challenge to the EU’s strategic interests and capacity to act.

With geopolitical tensions on the rise and global economic integration deeper than ever, some economic flows and activities may pose a risk to our security. Today more than ever, our security is deeply intertwined with our ability to empower ourselves and mitigate the risks derived from economic ties that we once considered benign. […] While the European Union has done a lot to respond to specific challenges in recent years, it now needs a comprehensive strategic approach to economic security, to reduce risks and promote its technological edge in critical sectors. The aim is to provide a framework for robust assessment and management of economic security risks at European, national and corporate levels, while preserving and increasing our economic dynamism. This is even more important at a time when these risks are rapidly evolving and merging with national security concerns. […]

We must rely on trade and the single market to stimulate competition and secure access to raw materials, technologies and other inputs that are essential to increase our competitiveness and resilience, and to support current and future jobs and growth. Equally, we want our partners around the world to continue to benefit from access to European markets, capital and technologies for their transition to a clean and resilient economy.

Achieving this goal will depend on the following three priorities: (1) promoting our competitiveness; (2) protect us from risks to economic security; (3) work with the widest possible range of countries that share our economic security concerns or interests.