Debate: European Economic Security Strategy
Date: TUESDAY, 12 DECEMBER 2023
Speaker: Valdis Dombrovskis
Language: EN

The strategy is based on three main pillars of action: promoting the EU’s competitiveness and growth; strengthening the single market, supporting a strong and resilient economy; and fostering the EU’s research, technological and industrial base.  Protecting our economies through a range of policies and tools included targeted new instruments where needed and partnering with the broadest possible range of countries worldwide to diversify and strengthen mutual resilience. In the rollout of the strategy, our approach will be targeted and proportionate. We intend to focus on those risks that have potentially high impact on the EU or its Member States, and high likelihood of occurrence.  Moreover, by jointly tackling these risks with international partners and allies, we secure our ability to trade and innovate openly. So you see, economic security is not about closing in. It is not about inward looking protectionism. Rather the opposite, the precision in tackling risks that matter will allow the EU to continue benefiting from our openness.  Speaking of the strategies rollout, on 3 October, the Commission delivered the first product, a recommendation on critical technology areas. Out of the ten critical technology areas, the recommendation identifies four areas for immediate joint-risk assessments with Member States: advanced semiconductor technologies; artificial intelligence technologies; quantum technologies; and biotechnologies. These joint-risk assessments on technology, security and leakage are currently ongoing and should be concluded early next year. In parallel, as the Commission is conducting three further risk assessments on supply chain dependencies, on critical infrastructure, and on weaponisation of economic dependencies and economic coercion. These assessments will allow us to identify our strengths to preserve and vulnerabilities to address. They inform, but not prejudge on the measures to take at the EU or national level. We are also looking into our existing toolbox to ensure that it is fit for purpose. By early next year, we will present several initiatives announced in the strategy in the areas of trade, investment and research.  First, we will present a legislative proposal for the revision of the FDI Screening Regulation. This will be built on the practical experience we and Member States have gained since October 2020 from reviewing more than 1000 foreign direct investment transactions.  Second, in full respect of the EU and Member States respective competences, we will present a proposal to improve the effectiveness and efficiency of the current export-controls regime. Export controls introduced by one Member State can affect supply chains in the whole single market, so we need to improve our collective effectiveness and coordination. We also need to reinforce the EU’s capacity to act as a global actor, in the context where multilateral export-control regimes are under pressure, and where we see several unilateral controls being introduced on critical technologies or critical inputs.  Third, we have started examining potential security risks related to outbound investments. The EU and Member States have a common interest in preserving the narrow set of technologies and know-how to avoid leaks to actors that will use them to enhance their military and intelligence capabilities and to undermine international peace and security. We launched a dedicated expert group with Member States to investigate potential risks linked to outbound investment. The third meeting of the group will take place on 15 December. Separately, we are also consulting the business community on this new work stream and to take the work on outbound investment further, the Commission will present an initiative as part of the package early next year.  Fourth, we will present a proposal to lay out long term options for targeted support for research and innovation on dual use technologies.  And fifth, will present a proposal to increase research security by raising awareness among researchers and academics across Europe to ensure that we can collectively prevent technology leakage at the level of our research outputs and innovations. This will build on our existing toolkit for tackling foreign interference for universities and other research institutions, and on the mutual learning exercise among Member States.  Honourable Members, the work on next steps is ongoing. I am confident that today’s debate will feed into the proposal that we are set to unveil early next year. More generally, we strongly count on the support of the European Parliament to ensure that our Union has what it takes to increase its resilience and economic security in the current geopolitical context. We can only do so by acting together.