The European Commission would like to give preference to local companies for high-tech contracts in the future. This is the result of its competition compass presented on Wednesday. Specifically, it concerns public procurement of critical technologies, which currently account for 14 percent of Europe’s gross domestic product. The preferential treatment of European companies is intended to stabilize supply chains, secure technology, and simplify the rules for start-ups, according to the document. These measures are also intended to counteract overcapacity and unfair competition.
The South China Morning Post reports that a „Buy European“ regulation is unlikely to happen. The move comes just a few weeks after the EU determined that China’s own „Buy Local“ regulations in the medical sector are illegal. The procurement agreement of the World Trade Organization (WTO) prohibits discrimination against foreign companies beyond a threshold value. Instead, the EU will create more incentives to invest in European companies in the future.
Even without the „Buy European“ regulation, the proposal fits in with the spirit of the times. Both CDU chancellor candidate Friedrich Merz and French Prime Minister François Bayrou have warned of the threat posed by China to the European market. The EU therefore wants to reduce its dependence on Chinese markets. Instead, programs such as the Competitiveness Compass are intended to strengthen production and competition within Europe. ek