An EU approach to enhance economic security *

The European Commission and the High Representative today published a Joint Communication on a European Economic Security Strategy. 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 proposed strategy sets out a common framework for achieving economic security by promoting the EU's economic base and competitiveness; protecting against risks; and partnering with the broadest possible range of countries to address shared concerns and interests. The fundamental principles of proportionality and precision will guide measures on economic security.

A more comprehensive approach to risk management

Risks presented by certain economic linkages are evolving quickly in the current geopolitical and technological environment and are increasingly merging with security concerns. This is why the EU must develop a comprehensive approach on commonly identifying, assessing and managing risks to its economic security.

The Strategy proposes to carry out a thorough assessment of risks to economic security in four areas:

• risks to the resilience of supply chains, including energy security;
• risks to physical and cyber security of critical infrastructure;
• risks related to technology security and technology leakage;
• risks of weaponisation of economic dependencies or economic coercion.

The Strategy proposes a methodology for this risk assessment. It should be carried out by the Commission and Member States in cooperation with the High Representative, where appropriate, and with input from the private sector. It should be a dynamic and continuous process.

The Strategy also sets out how to mitigate identified risks through a three-pronged approach, namely by:

• promoting the EU's competitiveness, by strengthening the Single Market, supporting a strong and resilient economy, investing in skills and fostering the EU's research, technological and industrial base;
• protecting the EU's economic security through a range of existing policies and tools, and consideration of new ones to address possible gaps. This would be done in a proportionate and precise way that limits any negative unintended spill-over effects on the European and global economy;
• partnering with the broadest possible range of partners to strengthen economic security, including through furthering and finalising trade agreements, reinforcing other partnerships, strengthening the international rules-based economic order and multilateral institutions, such as the World Trade Organization, and investing in sustainable development through Global Gateway.

European Commission original press release:

https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3358