EU: The Commission intends to present a new instrument that will protect the internal market in the event of a crisis

Brussels is to present by mid-September the draft of a new instrument, the aim of which will be to protect the EU’s internal market in the event of a crisis and, if necessary, to force producers of strategic products to serve Europe as a priority.

If there are shortages of critical goods, Brussels will be able to force industries to prioritize European orders over Chinese or American ones, under threat of fines, according to a document cited by AFP.

The measure, based on rules already in place in the US, is seen as a weapon of “retaliation” that the EU would prefer not to use, a European source explained. The basic idea is to discourage third countries from blocking the export of strategic products to Europe, like the US which had banned the export of Covid-19 vaccines during the pandemic.

That proposal will be presented on September 13, another source said. It would then have to be approved by the European Parliament and member states, a process that could take many months, possibly a year.

The body that will protect the single market was announced by the president of the European Commission Ursula von der Leyen in February 2021, on the occasion of the disruption in the supply chain due to the pandemic.

Before a crisis even emerges, a “surveillance” phase could be triggered, under the control of member states, if there is a risk of shortages. Industries may be asked to provide certain information, such as their production capabilities. At this stage, the Commission would like to be able to ask countries to accumulate strategic reserves.

The text, drafted by Internal Market Commissioner Thierry Breton, also states that restrictions on the movement of goods and people between member countries should be minimized.

The Commission could also purchase products on behalf of member countries, based on the model followed with the Covid-19 vaccines.

Source: AMPE