German media: EU Industry Ministers: Europe Must Promote the "Made in Europe" Strategy

EU Commissioner for Industry and Trade, Sejourne, co-authored an article with over 1,100 CEOs and business leaders, stating that Europe needs to protect its industries through the "Made in Europe" strategy.

EU Commissioner for Industry and Trade Sejourne (Stephane Sejourne) stated in an article published in several European newspapers that Europe needs to protect its industries through the "Made in Europe" strategy. He also mentioned that over 1,100 CEOs and business leaders co-signed the article.

In his article, Sejourne wrote, "Without a bold, effective, and pragmatic industrial policy, the European economy is destined to become a playground for competitors."

He said, "We must finally establish a real European priority in the most strategically important industries."

The EU Commission's Industrial Accelerator Act is expected to be implemented later this month. The act may include provisions that prioritize locally manufactured products.

This act aims to boost European industry to counter cheap imports from China. However, the act has caused divisions within the EU.

Some national governments, including France, strongly support this idea, while countries such as Sweden and the Czech Republic have warned that requirements to "buy local products" could hinder investment, increase the cost of government tenders, and harm the EU's global competitiveness.

The German government has not directly commented on the Commission's initiative. Steffen Meyer, a deputy spokesperson for the German government, said, "In principle, we want to strengthen Germany's and Europe's productivity and enhance the competitiveness of the European economy." He added that as a major client, the German government must take strategic measures in procurement.

Sejourne said the best answer for Europe can be summarized in four words: "Made in Europe."

He said, "China has 'Made in China,' the US has 'Buy American,' and most other economies also have similar plans to prioritize their own strategic assets. Why can't we do the same?" He pointed out, "The use of European public funds must promote European production and high-quality employment."

Industry's mixed views on protectionism

Industry's attitude toward protectionism is not uniform. Several automotive suppliers signed Sejourne's article, but most car manufacturers did not. Car manufacturers rely on large global supply chains and are concerned that the concept of "Made in Europe" might be too narrow.

Jim Baumbick, head of Ford Motor Company in Europe, told Reuters, "Ford supports strengthening Europe's industrial base, but the planned 'Made in Europe' must remain open to trusted partners such as the UK and Turkey." Ford has production facilities in Turkey.

Ola Källenius, CEO of Mercedes, warned last week that protectionist measures in Europe would have negative consequences. He pointed out that the European continent relies on open markets, "We must be extremely cautious, using a scalpel rather than a chainsaw," he said in Stuttgart. He believes that protectionism could lead to rising prices and shrinking markets. Other regions may set new barriers, making it more difficult for European exports.

Thyssenkrupp Steel supports the "Made in Europe" concept, arguing that "we must create strategic momentum to long-term, reliably, and sustainably strengthen our European value chains." It is necessary to use European public funds to strengthen European production and employment, "otherwise, we will ultimately subsidize our own dependence."

Source: DW

Original: toutiao.com/article/1856051812048969/

Statement: This article represents the views of the author himself.