Commission announces strategic approach to strengthen Europe’s economic security

Last December 3, the European Commission and the High Representative presented a Joint Communication on strengthening Economic Security. It outlines concrete steps to reinforce the EU’s strength and resilience in the face of growing external economic threats, while retaining our openness and commitment to international trade and investment.

The Joint Communication builds on the Economic Security Strategy of 2023 which set the overarching economic security objectives of promoting industrial strengths, protecting European interests and partnering with like-minded countries.

This Communication sets out the EU’s strengthened approach to addressing risks, using all the tools at its disposal. To strengthen its economic security, the EU will use existing tools irrespective of their original purpose and will deploy its toolbox more proactively when needed. It will also enhance its information collection and analytical capabilities to inform EU decisions and improve coordination with Member States and businesses.

A proactive and targeted approach

The Communication reflects a paradigm shift, moving from a reactive posture towards a more proactive and systematic deployment of tools. The EU will also be more strategic in leveraging its economic weight and the access to its Single Market. The EU’s measures will remain targeted, proportionate and focused on addressing specific high-risk situations. At the same time, the EU, its Member States and businesses will increasingly need to accept the economic costs that come with increased security and resilience.

Drawing on risk assessment work with Member States, the Commission’s immediate focus will be in six priority high-risk areas:

• Reducing strategic dependencies for goods and services;
• Attracting safe investment into the EU;
• Supporting a vibrant European defence and space industry, and other critical industrial sectors;
• Securing EU leadership across critical technologies;
• Protecting sensitive information and data;
• Shielding Europe’s critical infrastructure.

Coordinated and strategic use of tools

The effectiveness of EU action will be strengthened by using existing tools more strategically and in a coordinated way. This includes, for example, new FDI screening guidelines, taking economic security considerations into account in trade defence investigations, and prioritising funding for projects that work on reducing EU dependencies.

Improved situational awareness

The Commission will enhance its assessment of risks, as well as information gathering and sharing with Member States and stakeholders. It will promote a common understanding of economic security risks, and how and when to deploy measures to counter them. This will help the EU to intervene in a timely and effective manner. A key element will be reinforcing the Commission’s close cooperation with business, which is often at the sharp end of economic security issues.

Completing the EU’s economic security toolbox

The EU is also working on new tools to address the current gaps in the EU’s economic security. The first flagship proposal under the new economic security communication, ResourceEU is presented today, focusing on tackling Europe’s overdependence on overseas suppliers of critical raw materials and semiconductors. Other initiatives are at various stages of preparation and implementation, including the SAFE Regulation, Industrial Accelerator Act, Cloud and AI Development Act, CHIPS 2.0 Act, Net Zero Industry Act, Critical Raw Materials Act, Start-up and Scale-up Strategy, and EU Space Programmes.

International cooperation

Europe is far from alone in facing economic security challenges. With that in mind, the EU will even further step up its cooperation with trusted partners, promote common economic security standards, and where possible take joint action to address key challenges.

Next steps

The Commission is already putting in motion any necessary legislative changes, guidelines and other supportive measures to implement the actions set out in the Joint Communication. The Commission will continue to engage intensively with the Member States, third countries and with stakeholders on the new economic security strategic approach.

More information: European Commission