In previous blogs, we have written about the EU-China relationship and how the EU was increasingly focused on delivering its policy of Strategic Autonomy. We are beginning to see the concrete implementation of this strategic intent, with the EU Commission approving a €902 million German State aid measure to support the construction of an electric vehicle battery production plant. As Margrethe Vestager, EVP for Competition Policy noted, this is the first individual aid to have been approved under the Temporary Crisis and Transition Framework since March 2023 and its approval will keep the battery plant in the EU, rather than it moving to the US.
And the EU is planning to take further measures to enhance and protect its economic security in pursuit of the goal of strategic autonomy. On December 10, the Commission unveiled its Agenda outlining for items to be addressed in early 2024. Of note is the European Economic Security Package (EESP), due for discussion on 24 January.
It had been planned to adopt the EESP by the end of 2023. However, its adoption faced delays due to Member States’ concerns about ceding authority to Brussels in an area traditionally reserved for national competence. For its part, the Commission argues that a “Europeanization” of the EU trade rules was required to ensure consistency across the bloc following decisions by various Member States to issue their own trade measures (for example, on export controls).
Although full details of the EESP have not yet been released, key components of the EESP will include a revision of the Foreign Direct Investment Screening Regulation and an initiative regulating outbound investments. The Agenda for 24 January also includes a non-binding Communication restricting export of dual-use items.Continue Reading The European Economic Security Package