The Fort Worth Press - 'Made in Europe' or 'Made with Europe'? Buy European push splits bloc

USD -
AED 3.67302
AFN 66.000537
ALL 79.23994
AMD 364.47016
ANG 1.789783
AOA 917.999742
ARS 1512.601098
AUD 1.390047
AWG 1.80125
AZN 1.700789
BAM 1.680277
BBD 2.014159
BDT 123.275844
BGN 1.696366
BHD 0.377035
BIF 2990
BMD 1
BND 1.27202
BOB 11.57514
BRL 5.161702
BSD 1.000034
BTN 95.488638
BWP 13.399086
BYN 3.015872
BYR 19600
BZD 2.011237
CAD 1.38545
CDF 2274.999917
CHF 0.803885
CLF 0.023453
CLP 923.030311
CNY 6.72275
CNH 6.71958
COP 3164.85
CRC 454.397058
CUC 1
CUP 26.5
CVE 95.049727
CZK 20.716303
DJF 177.7198
DKK 6.4155
DOP 58.275014
DZD 132.880303
EGP 50.251695
ERN 15
ETB 160.590144
EUR 0.858255
FJD 2.191602
FKP 0.735639
GBP 0.735781
GEL 2.599493
GGP 0.735639
GHS 11.195007
GIP 0.735639
GMD 73.49852
GNF 8777.504871
GTQ 7.631607
GYD 209.218609
HKD 7.838899
HNL 26.879776
HRK 6.466603
HTG 130.827552
HUF 313.157989
IDR 18131.4
ILS 2.96645
IMP 0.735639
INR 95.47255
IQD 1310.5
IRR 1374574.999994
ISK 120.330005
JEP 0.735639
JMD 158.759069
JOD 0.708998
JPY 159.445498
KES 129.440081
KGS 87.449931
KHR 4044.999944
KMF 422.999834
KPW 900.000294
KRW 1381.229845
KWD 0.30855
KYD 0.833362
KZT 462.786202
LAK 22419.99962
LBP 89550.000125
LKR 328.549398
LRD 181.72498
LSL 15.979794
LTL 2.95274
LVL 0.60489
LYD 6.334983
MAD 9.26375
MDL 17.130314
MGA 4334.999856
MKD 52.853823
MMK 2100.008538
MNT 3596.251996
MOP 8.073746
MRU 40.098216
MUR 46.797745
MVR 15.459653
MWK 1735.999923
MXN 16.981606
MYR 4.032699
MZN 63.904973
NAD 15.97005
NGN 1343.660419
NIO 36.719798
NOK 9.32907
NPR 152.781477
NZD 1.681126
OMR 0.3845
PAB 1.000034
PEN 3.351009
PGK 4.429045
PHP 62.058017
PKR 277.550455
PLN 3.71802
PYG 5937.463755
QAR 3.64525
RON 4.514097
RSD 100.676036
RUB 85.901442
RWF 1470
SAR 3.75363
SBD 8.000128
SCR 14.600468
SDG 600.999993
SEK 9.518201
SGD 1.270795
SHP 0.740866
SLE 24.696327
SLL 20969.499227
SOS 571.502481
SRD 37.732027
STD 20697.981008
STN 21.35
SVC 8.750263
SYP 13001.999906
SZL 15.810368
THB 32.869846
TJS 9.225224
TMT 3.51
TND 2.895499
TOP 2.40776
TRY 48.151025
TTD 6.788034
TWD 31.684296
TZS 2647.503011
UAH 44.554757
UGX 3755.235293
UYU 40.198803
UZS 11825.000469
VES 786.2853
VND 26078
VUV 118.45632
WST 2.706367
XAF 563.56115
XAG 0.014436
XAU 0.000217
XCD 2.70255
XCG 1.802311
XDR 0.707052
XOF 562.499227
XPF 102.650222
YER 237.05034
ZAR 15.992398
ZMK 9001.200085
ZMW 19.025568
ZWL 321.999592
  • CMSC

    0.0350

    21.31

    +0.16%

  • JRI

    -0.0400

    12.4

    -0.32%

  • RYCEF

    -0.4000

    20.75

    -1.93%

  • BP

    -0.1600

    42.34

    -0.38%

  • BCE

    -0.0900

    23.4

    -0.38%

  • GSK

    -1.1600

    50.27

    -2.31%

  • VOD

    -0.0600

    15.88

    -0.38%

  • CMSD

    0.0200

    21.18

    +0.09%

  • RBGPF

    0.8000

    70.69

    +1.13%

  • BCC

    -1.1700

    78.77

    -1.49%

  • AZN

    -1.7500

    164.52

    -1.06%

  • RELX

    0.9600

    36.3

    +2.64%

  • NGG

    -1.1000

    79.43

    -1.38%

  • BTI

    -1.1600

    56.28

    -2.06%

  • RIO

    0.0800

    104.78

    +0.08%

'Made in Europe' or 'Made with Europe'? Buy European push splits bloc
'Made in Europe' or 'Made with Europe'? Buy European push splits bloc / Photo: © AFP/File

'Made in Europe' or 'Made with Europe'? Buy European push splits bloc

Everyone in Europe agrees the EU needs to rescue its industry but the bloc is split over how far it should push a 'Buy European' approach in order to do so.

Text size:

The European Commission, the EU's executive arm, will next week propose new rules that are expected to include a requirement for companies in strategic sectors to produce in Europe if they want to receive public money.

But the definition of "European preference" has triggered debate, with calls especially from France for more "Made in Europe", while other EU states such as Germany call for "Made with Europe".

- Protecting Europe or European protectionism? -

French President Emmanuel Macron insisted the new rules would be about "protecting our industry" without "being protectionist", by defending "certain strategic sectors, such as cleantech, chemicals, steel, cars or defence".

Otherwise, he warned, "Europeans will be swept aside".

But other EU countries, which are proponents of free trade, oppose the plans.

Swedish Prime Minister Ulf Kristersson said Europe should compete based on quality and innovation, not because it wanted to protect European markets.

"We do not want to protect European businesses that are basically not competitive," Kristersson told the Financial Times newspaper last week.

But EU leaders during talks Thursday appeared to reach a consensus on the issue, pushing for the measure in certain specific sectors since they say Europe faces unfair competition from China and other countries.

"We are in favour of open markets," German Finance Minister Lars Klingbeil said Monday. "But I also want to be very clear: if China changes the rules of the game, if we are confronted with overcapacity, subsidies, and the fact that markets in Europe are flooded, then Europe must defend itself."

- In Europe or with Europe? -

Supporters want "Made in Europe" to be strictly defined, and only for industrial goods made from components manufactured in the European Economic Area, made of the EU's 27 states as well as Iceland, Liechtenstein and Norway.

Critics say this definition would be too restrictive and instead call for a more flexible measure, like Germany's Merz, who calls for "Made with Europe" not "Made in Europe".

They also argue it would be difficult to apply in practice and risks destabilising European supply chains.

"Typically, even a vehicle assembled in Europe incorporates hundreds of specialised components sourced from all over the world. Many critical inputs cannot be competitively produced at scale in Europe," Japanese carmaker Honda said.

Britain and Turkey, for whom the EU is an important trading partner, have also privately expressed concern to Brussels about keeping their countries out.

Some EU capitals are worried about potential retaliatory measures from supplier countries, which would drag Europe into showdowns at a moment when it needs to strengthen its exports.

- What will the rules look like? -

The EU executive insists it has balanced the need to be open and protect firms.

The measure will be "targeted in three ways", said the office of EU industry chief Stephane Sejourne -- who is spearheading the push.

It will affect:

-- a limited number of critical components

-- a limited number of strategic sectors

-- only when public funding is involved.

The final proposal, which will be announced on February 25, could end up only touching a handful of sectors: the auto industry and those playing an essential role in the green transition and confronted by what the EU says unfair Chinese competition, such as solar panels, wind turbines and batteries.

Sejourne's office insisted companies producing in the EU would be considered European and there will be "reciprocal commitments" with trusted partners.

A draft document seen by AFP says products made in countries outside the EU with rules similar to the bloc will be treated like those made in Europe.

Non-EU countries however remain watchful until the real proposal lands.

For example, there are still many unknowns including what the percentages of European or equivalent components will be required from manufacturers if they wish to continue accessing public money.

G.George--TFWP