COVID-19 strengthens EU drive for economic sovereignty

Subject

EU economic sovereignty.

Significance

COVID-19 is increasing momentum within the EU to enhance the bloc’s economic and strategic sovereignty by substantially reducing dependence on non-EU powers, particularly China. While the immediate concern is to become more self-sufficient in medical and pharmaceutical production, leaders are also set on strengthening European sovereignty in critical sectors including technology and automobiles.

Impacts

• A strong economic recovery will be important in determining an EU consensus view concerning the bloc’s main economic competitors.
• Public investment in the private sector will provide greater economic stability, but more state influence on supply chains and investments.
• Scepticism of China will become a growing feature in European politics.