The European Union (EU) will prioritise over the next five years increasing economic security and reducing dependence on third parties in “sensitive sectors” such as space, pharmaceuticals, chemicals, biotechnology or artificial intelligence.
The Strategic Agenda 2024-2029, approved early this Friday by the heads of state and government of the 27 EU member states, enshrines strengthening European competitiveness and autonomy as priorities following the pandemic and the outbreak of war in Ukraine.
Both crises have highlighted the risks of dependence on the European bloc for essential supplies – from masks to semiconductors and natural gas – in a context of geopolitical tensions and rising protectionism, leading it to opt for policies promoting local production and diversification.
“We will strengthen our economic security, reduce harmful dependencies, and diversify and protect our strategic supply chains, in particular by strengthening our maritime security,” the document says, which also calls for increasing “our own capabilities in sensitive sectors and technologies that are key to the future.”
Leaders cite space, artificial intelligence, quantum technologies, 5G and 6G telecommunications, semiconductors, zero-emission technologies, mobility, healthcare, pharmaceuticals, chemicals and advanced materials as priority areas for the next five years.
According to a report published by the European Commission in 2021, the EU has a “high dependence” on third countries for 137 products in sensitive sectors (equivalent to 6% of the value of its imports), especially from China, the origin of more than half of these products, followed by Vietnam (11%) and Brazil (5%).
Seven out of ten of these products are used in sectors with high energy consumption, such as raw materials or chemicals, although there is also a large dependence on healthcare and products related to the green and digital transition, such as hydrogen or chips.
The EU, for example, produces just 1% of the raw materials needed for lithium batteries, wind turbines or motors for electric vehicles.
The European bloc gets 98% of its rare earths and 93% of its magnesium from China, 98% of its borates from Turkey and 78% of its lithium from Chile, all of which are needed for almost all advanced technologies.
EU countries produce 24% of the world’s active pharmaceutical ingredients, compared to 66% from India and China combined, and 45% of European imports come from the Chinese market.