The European Union’s 27 leaders agreed to move forward with a comprehensive “Buy European” strategy during their summit in eastern Belgium, responding to mounting evidence that Europe’s industrial base faces existential threats from global competitors. The meeting at Alden Biesen, a moated castle founded by Teutonic knights in the 13th century, provided a fitting backdrop for discussions about defending European economic interests in an increasingly hostile global environment.
António Costa told reporters after the summit that leaders shared a “broadly understood” need to “protect and reinforce certain sectors” through targeted European preference policies. He specifically named defense, space, clean technology, quantum computing, artificial intelligence, and payment systems as areas where European preference would apply. This represents a significant expansion of sectors considered strategic, moving beyond traditional defense concerns to encompass the full range of technologies that will define 21st-century economic power and national security.
Ursula von der Leyen’s promised action plan will tackle multiple dimensions of European competitiveness simultaneously. Beyond “Buy European” procurement policies, the package includes regulatory “simplification” to reduce bureaucratic burdens that make European businesses less agile than American or Chinese competitors. The EU Inc initiative aims to create a unified corporate framework allowing startups to scale across Europe as easily as they can within single countries. Capital market integration would pool European savings to fund green and digital transformations currently constrained by fragmented national systems. Energy price reductions address the cost disadvantages that have driven energy-intensive industries to relocate outside Europe.
The summit addressed vulnerabilities that became painfully apparent during recent crises. Russia’s weaponization of energy supplies in 2022 revealed dangerous dependencies that European leaders had ignored for decades. The United States under Donald Trump demonstrated that even close allies might suddenly impose tariffs and demand one-sided concessions. China’s industrial policies, which involve massive state subsidies enabling Chinese companies to sell below cost and capture market share, threaten to eliminate European competitors in strategic sectors ranging from solar panels to electric vehicles to semiconductors.
France has historically championed European preference policies, with President Emmanuel Macron arguing that strategic sectors including clean technologies, chemicals, steel, automotive, and defense require protection “otherwise Europeans will be swept aside.” He describes “Buy European” as “a defensive measure” made necessary by competitors who “no longer respect the rules of the World Trade Organization.” However, Germany’s Friedrich Merz advocates for “Made with Europe” rules that would include trading partners rather than narrowly favoring European producers. This debate between French dirigisme and German ordoliberalism will shape how European preference policies are ultimately implemented and whether they complement or conflict with Europe’s broader trade agenda.