BRUSSELS: The European Commission on Wednesday launched a bid to equip Brussels with new powers to swiftly retaliate against efforts by foreign governments to undermine the European economy and businesses.
The EU executive has not been specific about who would be targeted with the new powers to impose regulatory controls on foreign goods and to deny government contracts and research grants to foreign firms.
The package is to be known as an “anti-coercion” tool.
The plan’s main backers pushed for the new weapon in the wake of Donald Trump’s presidency, when EU officials felt unfairly targeted by the whims of the US leader, especially on trade.
Potential dirty tricks by China and Russia are also thought to be on the minds of the tool’s backers, which was demanded by the European Parliament, where the desire for a vigorous EU foreign policy is strong.
It is also ties in with France’s ambition for Europe to exercise “strategic autonomy” against the global supremacy of the US and China, which is seen as increasingly destabilising and unpredictable.
“With this proposal we are sending a clear message that the EU will stand firm in defending its interests,” EU executive vice president Valdis Dombrovskis said.
“The main aim of the anti-coercion tool is to act as a deterrent. But we now also have more tools at our disposal when pushed to act,” he said.
Under current law, decision-making on European foreign policy requires unanimity among the 27 member states, making a robust response during a geo-political crisis very difficult.
The new powers could arguably be used in situations similar to when Lithuania complained last week that its exports had been banned by China, because Vilnius allowed a Taiwanese diplomatic representation to be opened on its soil.
The EU cautioned however that they would not be available to respond to trade disputes, which can be handled at the World Trade Organization, or in any matters governed by EU trade deals, such as with Britain.
As proposed, the EU’s executive in Brussels would have a list of options to answer economic intimidation by foreign governments, with member states only given the ability to stop the riposte if a qualified majority of countries decided to do it.
These could include freezing access to public contracts, holding up health and safety authorisations on certain products or bans from EU-funded research projects.
“The instrument is there to fend off any third country from pressuring the EU or its member states in a way that would seek to interfere in our domestic affairs in violation of customary international law,” an EU official said.
The commission’s plan now goes to parliament and to the EU’s member states, where some governments already have big questions about the need for handing such unprecedented powers to Brussels.
They argue that anything that goes outside the conflict-resolution practices at the World Trade Organization would be unwise.
In a government paper, the Swedish government doubted “the problem is large enough to justify the proposal.”
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