The EU has decided to combat industrial decline by ensuring priority for local companies.
The European Union (EU) intends to combat industrial decline through the "Made in Europe" law, ensuring priority for local companies. This was reported by Bloomberg.
It is noted that the European Commission (EC) will propose a number of new conditions that will ensure priority for local companies in investment decisions made by EU member states and foreign firms, which contradicts the philosophy of free trade that has defined the union's policy for decades.
The EC will propose rules under which key foreign investments will be made subject to strict conditions regarding technology transfer, hiring local workers, and creating joint ventures with European companies.
The new rules are aimed at increasing the resilience of supply chains in the EU and protecting industrial potential amid a deepening production decline in Europe.
Earlier, the EC introduced a requirement to procure weapons and military equipment of European production as part of a loan to Ukraine totaling 90 billion euros. EC President Ursula von der Leyen noted that, in addition to European defense companies, priority for supplying military equipment will be given to specialized factories located in Ukraine and in countries of the European Free Trade Area.
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