European Union leaders have reached a consensus on implementing a “Buy European” policy aimed at protecting critical sectors of European industry during their summit at a historic Belgian castle. The 27 leaders convened to address Europe’s economic competitiveness challenges relative to the United States and China amid growing global volatility.
European Council President António Costa confirmed broad agreement on protecting strategic sectors including defense, space, clean technology, quantum computing, artificial intelligence, and payment systems. The policy would involve prioritizing European companies in these sectors through targeted and proportional measures, marking a significant shift in EU economic strategy.
Commission President Ursula von der Leyen announced plans for a comprehensive action plan by March to strengthen Europe’s single market. The initiative includes regulatory simplification at both EU and national levels, a new corporate framework called EU Inc to support startups, capital market integration, and measures to reduce energy costs. Von der Leyen emphasized the enormous pressure and urgency driving these reforms.
The summit addressed long-standing concerns about Europe’s declining competitiveness, which intensified following the loss of Russian gas supplies in 2022, ongoing trade tensions with the United States, and China’s state-subsidized economic expansion. Belgian Prime Minister Bart De Wever highlighted the existential crisis facing several European nations due to factory closures, declining investment, high energy costs, excessive regulation, and unfairly subsidized Chinese imports.
The European preference approach, historically championed by France, could mandate government prioritization of locally manufactured goods in public contracts. An Industrial Accelerator Act expected later this month will establish targets for European content in strategic products such as solar panels and electric vehicles, demonstrating the EU’s commitment to industrial sovereignty.