Member States must agree to strengthen the arsenal of EU instruments to better protect strategic sectors from foreign takeovers in the post-Covid world, MEPs urged in a plenary debate in the European Parliament on Wednesday evening 17 June.
The exchange revealed a great deal of unanimity, not only among MEPs from all political groups, but also with the European Commission, with the parties agreeing on the need to better protect European industries and jobs. They urged Member States to strengthen their toolbox of instruments to prevent unfair market situations and ensure better reciprocity for EU companies. “We need to protect the Single Market from Chinese purchases, which do not follow international rules”, in order to give “a breath of fresh air to our companies already suffocating from the pandemic”, said Belgian Johan Van Overtveld, on behalf of the ECR group.
The debate was also an opportunity to react to the “White Paper”, the Commission’s initiative to monitor the impact of foreign subsidies within the Single Market (see EUROPE 12508/1, 12507/1). While the initiative has been welcomed by many Members, it is a little late and there is still a long way to go. Emmanuel Maurel (GUE/NGL, France) was outraged that “we had to wait until 2020 to be moved by aggressive commercial practices” and deplored the document as “too complicated”. For Stéphanie Yon-Courtin (RE, France), it is also a question of “what freedom for the Member States which, from now on, willingly accept foreign investments (...) by heavily subsidised foreign companies”.
Insufficient instruments
Trade Commissioner Phil Hogan pointed out that other tools also exist, such as the investment screening mechanism. He urged countries that had not yet established such a mechanism to do so as soon as possible. This mechanism needs to be strengthened, said Christophe Hansen (EPP, Luxembourg), Reinhard Bütikofer (Greens/EFA, Germany) and Raphaël Glucksmann (S&D, France). “Chinese investment is increasing in search of small companies with strategic importance”, Bütikofer warned.
“But this was the will of the co-legislators to have a light touch data driven, data collection mechanism”, Mr Hogan recalled, “the Commission will certainly advocate a stronger measure here, if this is possible”.
Mr Hansen also called for a rapid conclusion of the negotiations on an instrument on public procurement. “Your strong political support will be very welcome” to speed up the institutional talks “left somewhat unresolved by certain institutions”, Mr Hogan added.
Mr Glucksmann and Mr Maurel also called for a “Buy European Act”, a European transposition of an US-inspired law that would invite authorities to favour European products. “We can not stay like this, unable to produce scraps of tissue or basic medicines”, Mr Glucksmann argued, “the citizens of Europe would not forgive us - and they would be right”. Original version in French by Hermine Donceel)