EU leaders have agreed to move forward with a ‘Buy European’ policy aimed at protecting strategic sectors such as defence, artificial intelligence, and clean technology. The decision came during a summit held at a moated castle in eastern Belgium, where the 27 member states discussed how to bolster Europe's economic competitiveness amid global volatility.
Belgian Prime Minister Bart De Wever warned of an “existential crisis” facing Belgium, France, Germany, and the Netherlands due to factory closures, declining investment, high energy costs, and competition from Chinese subsidised goods. “We all know we must change course,” he said, urging decisive action.
European Council President António Costa noted broad agreement on the need to protect sectors like defence, space, clean tech, and AI. European Commission President Ursula von der Leyen promised an action plan by March to simplify regulations, support startups, integrate capital markets, and cut energy prices. “The pressure and the sense of urgency is enormous,” she stated.
The ‘Buy European’ policy, long championed by France, would prioritise local manufacturers in public contracts for strategic products. The EU’s upcoming Industrial Accelerator Act is expected to set targets for European content in items like solar panels and electric vehicles.
French President Emmanuel Macron and German Chancellor Friedrich Merz expressed unity but differed on the policy’s scope. Macron favoured a defensive approach focused on strategic sectors, while Merz advocated for ‘Made with Europe’ rules that include trading partners. Irish Prime Minister Michéal Martin stressed the importance of preserving open trade, indicating debates ahead.
