ReLive Short Cut: After ‘Made in China’ and ‘Buy American’, do we also need a ‘Buy European’ campaign?    

The European Commission is in favour of this – arguing that European industry must be protected from subsidised goods flooding the European market at low prices. State subsidies for products such as solar cells or electric cars should therefore only be granted if a certain proportion of their components are manufactured in Europe. Does this active industrial policy create equal terms of global competition, or does it lead to harmful isolationism?  

We have discussed this in our New Economy Short Cut:  

Buy European – Protection of Industry or Dangerous Isolation?   

Thomas Fricke opened the debate by providing an overview of current globalisation trends and the concerns they raise. He described the promise of sustained economic growth through globalisation and free trade as having failed. Instead, countries are now resorting to protectionist measures for various reasons. Prominent examples include the US and China, which have long been prioritising and bolstering domestic production. The debate now centres on how the EU will respond to these developments and whether the ‘Buy European’ initiative could offer a possible solution.  

Armin Steinbach added to these remarks by noting that the debate was not being conducted from a position of strength as the EU had missed the boat in certain industries. He agreed with Thomas Fricke that the free-market paradigm was no longer relevant today. Instead, he said, the WTO was now weakened, and subsidies and tariffs were shaping global trade. Nevertheless, Steinbach emphasised that he was not an unconditional supporter of the ‘Buy European’ instrument, as there was a risk of protectionism. However, he argued that it was important to ensure independence in key sectors such as AI, space and other security-related industries. Steinbach also emphasised that market-driven structural change also has an impact on jobs and political polarisation. It would therefore make sense, from a political perspective, to cushion this impact. However, the ‘Buy European’ initiative is not a panacea, but merely one of many measures that need to be taken. 

Sander Tordoir agreed in principle with Steinbach’s assessment and emphasised that ‘Buy European’ should merely be one of many tools. However, he argued that care should be taken to ensure that the initiative is not watered down too much and that the ‘toxic remedy’ should not become a ‘homeopathic remedy’. The goal should be to reduce dependencies, build up infant industries, secure jobs and prevent a political shift to the right.   

He therefore supports the plan to link future funding in certain sectors to the requirement that a minimum proportion of components be manufactured within the EU. Tordoir, however, criticised the focus on sectors such as steel, cement or the automotive industry. He emphasised that other high-tech sectors would also benefit from ‘Buy European’ requirements.