European Commission Advocates 'Europe First' Strategy Amid Trump Trade Concerns
The European Commission's new vice-president and industry commissioner, Stéphane Séjourné, has emphasized the urgent need for a 'Europe First' strategy to bolster key EU industrial sectors. This call comes in light of potential economic conflicts stemming from the trade policies of US President-elect Donald Trump. In an interview with the Financial Times, Séjourné warned that Trump's plans to impose comprehensive tariffs and cancel existing trade agreements could leave the European Union vulnerable to economic fallout.
Séjourné highlighted that if the US restricts its markets to regions like Latin America, India, and China, Europe could inadvertently become the primary destination for global surpluses, risking a short-term economic crisis. He advocates for an 'offensive' approach to protect the EU's strategic interests, promoting the slogan 'Made in Europe' as a counter to 'America First' and 'Made in China.'
Focus on Critical Industries and Clean Technology
The new vice-president pointed out the importance of revitalizing historical industries, particularly steel, which is essential for the production of clean technologies such as wind turbines and electric vehicles. He stated, 'We cannot produce wind turbines or electric cars without steel,' emphasizing the need for a robust steel industry to support the EU's broader industrial ambitions.
Séjourné also addressed the recent collapse of Northvolt, a Swedish company pivotal to Europe's green transformation, which resulted in significant financial losses and raised concerns about the sustainability of the battery industry. Despite this setback, he reassured that the EU would not abandon its commitment to the battery sector, stating, 'We must face the technological difficulties without abandoning what has been achieved.'
Call for Dialogue with the US and Future Directions
In his remarks, Séjourné urged for constructive dialogue with the incoming US administration, asserting that a trade war would be detrimental to both parties. He expressed the need for a strong message to Washington, advocating for the preservation of trade dialogue and cooperation.
He also outlined the Commission's plans to integrate capital markets to improve the investment landscape within the EU. The new Commission aims to enhance the competitiveness of the European Union over the next five years, focusing on strategic sectors such as automobile manufacturing, steel, and clean technology, while striving to balance industrial protection with global cooperation.
