{"id":151667,"date":"2020-10-19T14:40:19","date_gmt":"2020-10-19T14:40:19","guid":{"rendered":"https:\/\/www.bnreport.com\/europe-wants-strategic-autonomy-it-just-has-to-decide-what-that-means\/"},"modified":"2020-10-19T14:40:19","modified_gmt":"2020-10-19T14:40:19","slug":"europe-wants-strategic-autonomy-it-just-has-to-decide-what-that-means","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/europe-wants-strategic-autonomy-it-just-has-to-decide-what-that-means\/","title":{"rendered":"Europe wants \u2018strategic autonomy\u2019 \u2014 it just has to decide what that means\u00a0"},"content":{"rendered":"

\u201cStrategic autonomy\u201d is the EU\u2019s latest catchphrase, its label for the bloc\u2019s push to increase self-sufficiency and boost its own industry in the wake of the coronavirus pandemic.<\/p>\n

After the \u201cAmerica first\u201d motto, and Beijing\u2019s \u201cMade in China 2025\u201d strategy, it\u2019s the old continent\u2019s turn to turn its gaze inward.<\/p>\n

But before they can implement it, leaders across the EU have to agree on what it means exactly.<\/p>\n

\u201cThe strategic independence of Europe is our new common project for this century,\u201d European Council President Charles Michel said last month. \u201cEuropean strategic autonomy<\/a> is goal No. 1 for our generation.\u201d In response to concerns that this drive would undercut the bloc\u2019s free-trade orthodoxy, Michel said: \u201cAutonomy is not protectionism; it is the opposite.\u201d<\/p>\n

But not everyone is convinced.<\/p>\n

The slogan has caused a stir among EU heads of states and government, who after heated discussions in early October conceded<\/a> that \u201cstrategic autonomy\u201d is a \u201ckey objective\u201d of the bloc, while \u201cmaintaining an open economy.\u201d<\/p>\n

What\u2019s that?<\/h3>\n

What strategic autonomy means in practice remains hazy at best \u2014 and its ambiguity allows governments across the bloc to project their hopes and fears into the term.<\/p>\n

For the European Commission, strategic autonomy encompasses a host of initiatives, including more assertive trade defense instruments like a carbon border levy for emissions-intensive import and a mechanism to police recipients of foreign state subsidies. Another component is a push to increase independence of EU industry from single-country supplies of everything from active ingredients for drugs to raw materials for batteries.<\/p>\n

\u201cWe are currently working on strengthening the economic resilience and we are looking at different options: on-shoring, near-shoring, stockpiling, diversifying, shortening supply chains,\u201d newly-minted EU Trade Commissioner Valdis Dombrovskis said at his confirmation hearing this month. \u201cThis is the whole toolkit which we can explore.\u201d He confirmed that Brussels will present its new approach on trade in 2021.<\/p>\n

European Commission President Ursula von der Leyen has also promised<\/a> to revamp the bloc\u2019s industrial strategy and competition policy, which she said should \u201ckeep pace\u201d with global developments. Internal Market Commissioner Thierry Breton is going through a risk-analysis exercise to find weak links in Europe\u2019s supply chains and address them by increasing production on EU soil as well as diversifying suppliers.<\/p>\n

But this inward-looking push is rather awkward in the European Union, the world\u2019s most integrated trade bloc and a long-time champion of free trade and multilateralism. EU exports accounted for 15.4 percent of the bloc\u2019s economic output in 2019 \u2014 compared to 18 percent in China, and 12 percent in the U.S., according to World Bank data.<\/p>\n

For now, much of the debate on strategic autonomy has been on semantics, marking clear political divides between countries that see this as a threat to Europe\u2019s openness, and its proponents who see a chance to advance European industry and help foster \u201cchampions\u201d able to compete on a global scale.<\/p>\n

\u201cThere is a very strong tendency toward ever-growing protectionism,\u201d said Tytti Tuppurainen, Finland\u2019s minister for European Affairs. \u201cIt\u2019s the Zeitgeist<\/em> that has been there for a longer time, but now there are also forces that seize the moment.\u201d<\/p>\n

Who wants what<\/h3>\n

French President Emmanuel Macron has been using the catchphrase for years, applying it to everything from France\u2019s defense sector to European industry, and more recently pharmaceuticals.<\/p>\n

\u201cEuropean strategic autonomy is a concept that France has been pushing for almost three years,\u201d he told French daily Le Figaro<\/a> in April. \u201cA consensus is emerging in light of this crisis to strengthen European strategic autonomy, meaning our sovereignty, our ability to reduce our dependence vis a vis the rest of the world, strengthen our production companies.\u201d<\/p>\n

\nGermany and France on Tuesday discussed with the Commission \u201cmeasures to strengthen the development of future technologies in Europe and reduce our dependence,\u201d according to a statement from the French government.\n<\/p><\/blockquote>\n

Some see this as a grand French pipe dream: \u201cStrategic autonomy has been tried in the past. Napoleon had a serious stab at this. It didn\u2019t actually end so well for him,\u201d scoffed one EU diplomat.<\/p>\n

But the COVID-19 crisis set off a scramble to secure supplies of masks and other medical equipment, as well as drugs and their ingredients. The crisis also brought Berlin closer to France\u2019s way of thinking on the matter. And when the two European powerhouses agree on something, they generally set the direction for the rest of the EU.<\/p>\n

The EU\u2019s competition rulebook \u201cmust be rapidly modernized,\u201d German Chancellor Angela Merkel told reporters at a meeting of EU leaders in early October, so that \u201cmany global players can also emerge from the EU.\u201d This is particularly important in the digital sector where the EU must become \u201csovereign,\u201d she said.<\/p>\n

As EU leaders debated the matter, Merkel also spoke on behalf of Macron, who wasn\u2019t present for the discussion on his pet topic. This was \u201celegant,\u201d Macron said, keen to emphasize his unity of views on the issue with the EU\u2019s largest economy.<\/p>\n

<\/p>\n

Some are scared that this push for greater autonomy is simply going to give Franco-German industry a new edge | Christophe Simon\/AFP via Getty Images<\/p>\n

Germany and France on Tuesday discussed with the Commission \u201cmeasures to strengthen the development of future technologies in Europe and reduce our dependence,\u201d according to a statement<\/a> from the French government. The two goRead More \u2013 Source<\/a>
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