EU Embraces ‘Buy European’ Approach to Protect Critical Sectors from Unfair Competition

European Union leaders committed to implementing a “Buy European” policy during their summit focused on securing Europe’s economic future amid global challenges. The 27-nation bloc gathered in eastern Belgium to address declining competitiveness against the United States and China through strategic industrial protection measures.
European Council President Costa confirmed widespread agreement on using European preference in selected strategic sectors including defense, space, clean technology, quantum computing, artificial intelligence, and payment systems. The approach will be proportional and targeted, balancing protection with international trade obligations and economic analysis.
Commission President von der Leyen warned about walking a “fine line” with European preference policies while acknowledging their necessity. Every proposal will be supported by robust economic analysis and compliance with international obligations, ensuring the policy doesn’t compromise Europe’s commitment to rules-based trade.
Belgian Prime Minister De Wever’s opening remarks highlighted the existential crisis facing major European economies due to factory closures and declining investment. He criticized Chinese dumping of unfairly subsidized goods and called for decisive action, comparing the situation to standing on a ship’s bridge watching the horizon without touching the helm.
The summit incorporated insights from former Italian Prime Ministers Draghi and Letta, who produced comprehensive economic reports. Draghi’s stark assessment declared the current economic world order “dead” and warned that Europe must evolve from confederation to federation to avoid becoming subordinated, divided, and deindustrialized simultaneously.