European Union leaders agreed to embrace “Buy European” approaches during their summit addressing how Europe can counter economic threats from global competitors. The gathering of all 27 member states at a moated Belgian castle focused on protecting strategic industries while pursuing broader competitiveness reforms.
The summit’s location at Alden Biesen, an estate founded in the 13th century by Teutonic knights, provided symbolic resonance for discussions about defending European economic interests. Just as medieval knights defended European territories against external threats, modern European leaders discussed how to defend European industries and technologies against economic aggression by foreign powers who use state resources to advance their interests. The parallel isn’t perfect—medieval warfare involved very different ethics and methods than modern economic competition—but the fundamental challenge of defending vital interests against powerful adversaries remains.
António Costa’s confirmation of “broad agreement” on European preference in strategic sectors represented the culmination of years of French advocacy finally gaining broader acceptance. France has long argued that European ideological commitment to free markets was naive in a world where major competitors use state power to advance their economic interests. If China provides massive subsidies to strategic industries and America offers similar support through programs like the Inflation Reduction Act, Europe’s refusal to do likewise amounts to unilateral disarmament that will result in deindustrialization and strategic dependencies on potentially hostile powers.
The sectors identified for European preference—defense, space, clean tech, quantum, AI, and payment systems—encompass both traditional and emerging forms of strategic power. Defense industries are obviously relevant to military capabilities and national security. Space capabilities provide critical infrastructure for communications, navigation, and surveillance. Clean technologies will determine whether Europe meets climate commitments while maintaining industrial capabilities or becomes dependent on Chinese manufacturers who dominate solar panels, batteries, and other key components. Quantum computing may revolutionize cryptography, drug discovery, and other applications with profound economic and security implications. Artificial intelligence will shape everything from military capabilities to economic productivity to social control. Payment systems provide financial infrastructure that could be weaponized if controlled by foreign powers.
Commission President Ursula von der Leyen’s acknowledgment that European preference is “a fine line to walk” reflects genuine dilemmas in implementing these policies. If European preference requirements are too strict, they could trigger retaliation from trading partners and harm European exporters who depend on access to foreign markets. If requirements are too loose, they may fail to protect European industries or build European capabilities. The promise that every proposal will be “underpinned by robust economic analysis and be in line with our international obligations” aims to ensure that European preference serves European interests without triggering counterproductive trade wars. However, balancing these considerations will require careful judgment and may involve difficult trade-offs where no perfect solution exists.