Drawing lessons from the Covid-19 pandemic, European leaders gave their full support on Friday 2 October to an intensification of the internal market as agreed at the Competitiveness Council (see EUROPE 12563/13), as well as to empowering European strategic ecosystems with regard to third countries, particularly in the digital sector.
The conclusions have barely changed from the previous versions that were seen by EUROPE (see EUROPE 12571/3). All of the themes that were developed are still there, starting with the desire to “achieve strategic autonomy while preserving an open economy”, to build on a strong and functional single market, and to have a renewed and “ambitious” industrial policy.
The formula, which combines elements of autonomy and openness, may seem somewhat antinomic. It is a compromise between those Member States – France, Belgium and others – which want a more interventionist policy and the more Northern countries and Ireland, which are more in favour of free trade.
In fact, the possibility of relocating sectors or production chains has not been fixed in writing, even though many economic and political key players are seriously considering it. The health sector is clearly cited among the ecosystems for which European “dependencies” must be “reduced”. The space sector is also specifically noted, as is the defence industry. Important projects of common European interest (IPCEIs) also fall under the spotlight.
According to one diplomatic source, the conclusions “kick in” when it comes to autonomy. “But we need to celebrate the fact that they exist” and that they are not just calling for a return to normalcy, the source added.
On Wednesday 30 September, experts from Member States addressed the issue of strategic autonomy within the context of preparing EU Council conclusions. The concept would remain problematic for several Member States, such as the Northern countries. At the request of delegations from the South, discussions would also focus on a list of new IPCEIs and the integration of the tourism sector.
Services and implementation
“Discussions on improving how the Single Market functions have been going on for years. The stakes are well known”, said the President of the European Commission, Ursula von der Leyen. “Two of them particularly stand out. Firstly, the remaining obstacles, especially in the services sector. And secondly, the implementation problems that deprive companies of enjoying the benefits of a large and wide-reaching market”.
Mrs von der Leyen noted the announcement of a strategic report, scheduled for 15 January (see EUROPE 12563/13), and the presentation of an update in 2021 on the industrial strategy that was presented in March (see EUROPE 12561/8).
Digital. Unsurprisingly, the EU-27 are calling on the European Commission to present a comprehensive digital ‘compass’ by March 2021, which will set out “the EU's concrete digital ambitions for 2030”.
According to the European Council, in order to have digital sovereignty, the EU must establish a true single market, strengthen its ability to set its own rules, make autonomous technological choices, and develop and deploy strategic digital capabilities and infrastructures.
It should be noted that “20%” of the financial support for the European Recovery Plan is intended to promote the digital transition.
Mrs von der Leyen cited the importance of investing in industrial “data” and “artificial intelligence” that is focused on the human factor. The funds will also promote the development of future technologies (supercomputers, quantum computing, microprocessors), increase the EU's capacity to protect itself against cyber threats, and strengthen digital skills.
Finally, the European Council is calling for the establishment of a framework to secure public electronic identification (e-ID), which will allow citizens to exercise control over their identity and data online.
View the conclusions here: https://bit.ly/3ijvgpS (Original version in French by Pascal Hansens and Mathieu Bion)