EU Commission Seeks Tighter Controls Of Bloc's Economic Security, Dual-Use Exports

The European Commission proposed on Tuesday a new strategy aimed at enhancing economic security in such areas as energy, infrastructure and the supply of critical resources, as well as outbound investments and exports of dual-use goods

MOSCOW (UrduPoint News / Sputnik - 20th June, 2023) The European Commission proposed on Tuesday a new strategy aimed at enhancing economic security in such areas as energy, infrastructure and the supply of critical resources, as well as outbound investments and exports of dual-use goods.

"This Joint Communication focuses on minimising risks arising from certain economic flows in the context of increased geopolitical tensions and accelerated technological shifts, while preserving maximum levels of economic openness and dynamism," the Commission said in a statement.

The strategy, in particular, invites the EU countries to conduct a thorough assessment of the risks associated with supply chains, including the supply of energy resources. In addition, it suggests reconsidering the risks associated with critical infrastructure, technological security issues. The EU is also concerned about the fact that third countries may use the bloc's dependence on them as a bargaining chip.

"The aim of this strategy is to protect the EU's economic security and reinforce the resilience of our economy, while working to ensure that we maintain and grow our technological edge. This means investing in EU competitiveness, diversifying supply chains, and responding to practices such as economic coercion. It aims to prevent the leakage of sensitive emerging technologies, as well as other dual-use items, to destinations of concern that operate civil-military fusion strategies," the document read.

The Commission proposed developing new and strengthening existing mechanisms for export control over dual-use goods and critical technologies, as well as control over outbound investments to third countries.

In particular, a new initiative on external investment is planned to be submitted by the end of 2023.

The commission argued that "hostile economic actions, cyber and infrastructure attacks, foreign interference and disinformation and a global increase in geopolitical tensions" exposed vulnerabilities of and created new challenges for Europe, which caused the need for such a strategy.

"In parallel, we need to assess the effectiveness of the EU toolkit and expand it where necessary to tackle some of the new risks that we face, for instance linked to exports or outward investments in a narrow set of key enabling technologies with military applications (e.g. in the areas of Quantum, Advanced Semiconductors, Artificial Intelligence)," the strategy read.

The strategy proposed by the Commission will be discussed by member states and the European Parliament to eventually come up with a well-thought approach to economic security of the EU.

EU leaders are expected to discuss the proposal at the upcoming summit in Brussels from June 29-30.

In March, European Commission President Ursula von der Leyen said that the EU intended to change some of the provisions of the 2020 comprehensive agreement on investment with China. She pointed out that some investments could pose a risk to the national or economic security of EU member states. She added that the EU must consider diplomatic as well as economic risks resulting from the cooperation with China and take into account Beijing's growing ambitions in the international arena.