EUROPEAN
COMMISSION

Strasbourg, 3.10.2023
C(2023) 6689 final

COMMISSION RECOMMENDATION
of 3.10.2023
on critical technology areas for the EU's economic security for further risk assessmentwith Member States

ENEN

COMMISSION RECOMMENDATION
of 3.10.2023
on critical technology areas for the EU's economic security for further risk assessmentwith Member States

THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 292 thereof,
Whereas:EN(1)

The Commission and the High Representative have recognised that with risinggeopolitical tensions, deeper economic integration and the acceleration oftechnological development, certain economic flows and activities can present a risk to
our economic security and adopted a Joint Communication on European Economic
Security Strategy1 to put in place a comprehensive strategic approach to economicsecurity.

(2)

The European Economic Security Strategy is based on a three-pillar approach:promotion of the EU's economic base and competitiveness; protection against risks;and partnership with the broadest possible range of countries to address sharedconcerns and interests.

(3)As part of this framework and in light of the risks that certain economic dependencies
and technical evolutions can present, the EU needs a clear-eyed view of the risks to its
economic security and their evolution over time.

(4)

These risks should be identified and assessed together with EU Member States, with
inputs from private stakeholders in a dynamic and continuous process.

(5)

The European Economic Security Strategy identified the following four broad andnon-exhaustive categories of risks for further assessment: resilience of supply chains,
including energy security; physical and cyber-security of critical infrastructure;technology security and leakage; weaponisation of economic dependencies andeconomic coercion.

(6)

The Commission committed in the Joint Communication to assess the risks oftechnology security and leakage on the basis of a list of strategic technologies criticalfor economic security and, as regards the most sensitive risks, to propose a list ofcritical technologies in view of a risk assessment to be pursued collectively withMember States by the end of 2023.

(7)

The Joint Communication identified the following three narrowly defined andforward-looking criteria for the selection of technologies presenting the most sensitive
risks, for further assessment: the enabling and transformative nature of the technology;
the risk of civil and military fusion; and the risk of misuse of the technology forhuman rights violations.

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(8)

The enabling and transformative nature of the technology criterion looks at thetechnology’s potential and relevance for driving significant increases of performanceand efficiency and/or radical changes for sectors, capabilities, etc.

(9)

The risk of civil and military fusion criterion looks at the technology’s relevance forboth the civil and military sectors and its potential to advance both domains, as well as
risk of uses of certain technologies to undermine peace and security.

(10)

The risk of misuse of the technology for human rights violation criterion looks at thetechnology’s potential misuse in violation of human rights, including restricting
fundamental freedoms.

(11)

Following a first internal analysis, the Commission has identified a list of 10 criticaltechnology areas for the EU’s economic security. This list of technology areas takes
into account work done pursuant to the Action Plan on synergies between civil,
defence and space industries2. It is a living document and could be subject to furtheramendments reflecting technological developments as part of an ongoing exercise.

(12)

On the basis of the three narrowly defined and forward-looking criteria for theselection of technologies for further assessment, out of this list, the present
Recommendation identifies 4 technology areas, which it considers highly likely topresent the most sensitive and immediate risks related to technology security andtechnology leakage, namely Advanced Semiconductors, Artificial Intelligence,Quantum Technologies and Biotechnologies. These technology areas should, as amatter of highest priority, be subject to a collective risk assessment with Member
States by the end of the year. Subject to scoping work with Member States, thiscollective assessment may focus on subsets of technologies within these fourtechnology areas.

(13)

The structuring of the list reflects the Commission’s assessment of which technology
areas, among these, are more likely to present the most sensitive and immediate risks
related to technology security and technology leakage. This can serve as an aid todecision-making on further steps. The Commission will engage in an open dialogue
with Member States on the appropriate calendar and scope of further risk assessments,
having regard inter alia to the contribution of the time factor to the evolution of risks.
The Commission would welcome a timely exchange on this aspect of the Economic
Security Strategy in Council, in the context of its overall political deliberations andorientations in response to the Joint Communication. The Commission may present
further initiatives in this respect by Spring 2024, in light of such dialogue and of thefirst experience with the initial collective assessments, as well as of further inputs that
may be received on the listed technology areas. In deciding on proposals for further
collective risk assessments with Member States on one or more of the listed additional
technology areas, or subsets thereof, the Commission will take into account ongoing orplanned actions to promote or partner in the technology area under consideration.
More generally, the Commission will bear in mind that measures taken to enhance thecompetitiveness of the EU in the relevant areas can contribute to reducing certain
technology risks.

(14)

The objective of the risk assessment should be to identify and analyse vulnerabilities
of a systemic nature according to their potential impact on the EU’s economic security
and the degree of likelihood that the negative impact materialises. To structure the2COM(2021) 70 final.

2ENupcoming risk assessment exercise with Member States, the Commission has
identified some guiding principles.
(15)

This Recommendation does not prejudge the outcome of the risk assessment. Only theoutcome of the detailed collective assessment of the level and nature of the riskspresented can serve as the basis for a further discussion on the need for any precise
and proportionate measures to promote, partner or protect on any of these technology
areas, or any subset thereof. Member States and the Commission may use thisinformation in designing future policy actions, including promotion, partnership orprotection measures at national, EU or international level, which should beproportional to the level of risk addressed and precise in terms of scope. No
conclusion can therefore be drawn at this pre-assessment stage on recourse to any
particular instrument in the EU’s or the Member States’ toolboxes of measures topromote, partner or protect with others in view of enhanced economic security.

(16)

Any measures that may be taken will be proportionate and precisely targeted to theassessed risks of each critical technology area, or of a relevant technology. Any
implemented measures will aim at reinforcing the Union’s strength in these areas andbe designed to minimise any negative spill-over effects on the market and theeconomy. In particular, these assessments will contribute to the development of Union
policies in support of innovation and industrial development for the identified
technologies, including through international initiatives.

HAS ADOPTED THIS RECOMMENDATION:
1.

Out of the list of 10 critical technology areas identified in the Annex, it isrecommended, as an initial step, that Member States together with the Commission
assess, by the end of 2023, the following 4 technology areas with the highest
likelihood of presenting the most sensitive and immediate risks related to technology
security and technology leakage:(a)

Advanced semiconductors technologies

Semiconductors, microelectronics and photonics are essential components of electronic
devices in critical areas such as communications, computing, energy, health, transportationand defence and space systems and applications. Due to their huge enabling andtransformative nature and their use for civil and military purposes, remaining at the forefrontof building and further developing these technologies is crucial for economic security.
(b)

Artificial intelligence technologies

AI (software), high-performance computing, cloud and edge computing, and data analytics
have a wide range of dual-use applications and are crucial in particular for processing large
amounts of data and making decisions or predictions based on this data-driven analysis. Thesetechnologies have huge transformative potential in this regard.
(c)

Quantum technologies

Quantum technologies have a vast potential to transform multiple sectors, civil and military,
by enabling new technologies and systems that make use of the properties of the quantum
mechanics. The full impact of quantum technologies that are being/will be developed cannot
yet be fully qualified.
(d)EN

Biotechnologies

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Biotechnologies have a major enabling and transformative nature in areas such as agriculture,environment, healthcare, life science, food chains or biomanufacturing. Somebiotechnologies, such as genetic engineering applied to pathogens or harmful compounds
produced by genetic modification of microorganisms, can have a security/military dimension,in particular when being misused.

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2.

The Commission invites the Member States to engage in an open dialogue on an
appropriate calendar and scope for collective risk assessment of other technology
areas listed in the Annex, or subsets thereof, having regard to the fast-moving
geopolitical environment and to the differing degrees of likelihood that the listed
technologies present the most sensitive and immediate risks related to technology
security and technology leakage.

3.

To structure the collective risk assessment exercise, the following guiding principles
have been identified:(a)

Identify and analyse vulnerabilities according to their potential impact on the EU’s
economic security and the degree of likelihood that the negative impact materialises.
The analysis should identify the main types of threats and threat actors, and shouldtake into account geopolitical factors where relevant to assess the likelihood ofnegative impacts. It should also take into account, inter alia, the value chain of thetechnologies, the evolution of risks as well as relevant technological developments,
including any chokepoints and expected future chokepoints, a mapping of the EU’s
relative position in each technology, including key players and elements of the EU’s
comparative lead; the global interconnectivity of the ecosystem of the technology,
including in research and the supply chain for the technology.

(b)

At the scoping phase of the collective assessment, regard should be had to whether
the detailed assessment will focus on certain, most relevant subsets of technologies.

(c)

The risk assessment will not be country-specific.

(d)Prioritise risks having potential effects on the entire EU.

(e)Ensure synergies and complementarities with existing analyses at the EU level andMember State level, to feed into the risk assessment process.

(f)

Take into account private sector input.

4.

The collective risk assessment will ensure the confidentiality, upon request, of inputs
received from Member States or private sector. The final outcome document of thecollective risk assessment will be classified appropriately.

5.

The assessment should be conducted by the Member States and the Commission
making use of existing fora, or where necessary new ones, to include relevant
experts, as required for each of the critical technologies.

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6.

The Commission will continue monitoring the technological developments and, if
necessary, complement the present Recommendation by proposing additional
technologies for further assessment.

Done at Strasbourg, 3.10.2023

For the Commission
Thierry BRETON
Member of the Commission

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