By Alexandra Brzozowski | Euractiv Est. 5min 19-01-2024 (updated: 24-01-2024 ) Content-Type: News News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. [Shutterstock/panuwat phimpha] Euractiv is part of the Trust Project >>> Languages: DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram The European Commission is expected to table five new initiatives as part of its recent push towards a more comprehensive economic security strategy, according to a draft economic security package, obtained by Euractiv. The new push comes after the Commission announced last June a blueprint of the new strategy in which it was considering a series of tools to counter China and Russia’s increasing readiness to use trade and the control of critical supply chains to its geopolitical advantage. The economic security package comes as the bloc has battled to shake off its heavy dependence on third countries – which it realised could threaten its economic security if weaponised. This has become especially pressing after a struggle to reduce dependency on Russian energy following Moscow’s invasion of Ukraine. “The package presents a comprehensive approach to strengthen the EU toolbox to mitigate risks linked to foreign investments in the EU, to outbound investments, to dual-use goods and to bolsters research security,” the draft communication reads. “This strengthening is essential to enable the EU and member states to address systematically the risks identified in the ongoing risk assessments related to supply chains, technologies, infrastructures and economic coercion.” The document added that “recognising that risks to our economic security challenges change over time, linked to the broader geopolitical and geo-economic context, the strategy identified four risk categories to be addressed as a matter of priority”. In particular, the Commission points to risks in the supply chains, physical and cyber-security of critical infrastructure, technology security and leakage risks, and risks of weaponisation of economic dependencies or economic coercion. Five initiatives Key components of the EU’s economic security package will include a revision of the Foreign Direct Investment (FDI) screening regulation and an initiative regulating outbound investments, according to the draft document. The EU’s current regulation for screening Foreign Direct Investment (FDI) into the bloc has been in place for just over two years. While it does reinforce cooperation among all member states, its phrasing provides for the actual application of the regulation to be conditional – and down to national governments. The European Commission proposes a revision that would require all member states to introduce one, according to a draft seen by Euractiv. Another sensitive part of the strategy is a non-binding initiative of outbound investment screening, which would require EU member states to check up on investments abroad by European private companies to guard against the transfer of sensitive technology. A fourth part of the package relates to a white paper on export controls of dual-use technologies that impact the bloc’s security. The European Commission will propose several options for promoting research and development (R&D) related to technologies with dual-use potential, namely, those that can be used for both civil and military purposes, such as drones and satellites, according to the paper seen by Euractiv. The EU’s executive also proposed that EU member states recommend measures to strengthen research security at the EU and national levels. Geopolitics looming The five new components are the latest additions to the EU’s growing trade defence toolbox, which includes filtering foreign direct investments into the EU and a newly agreed anti-coercion instrument that foresees trade countermeasures against economic coercion. Though China is only mentioned once in the package, the set of new tools should be viewed against the background of EU-China-US relations. European Commission President Ursula von der Leyen last spring spelled out the bloc’s new ‘China doctrine’, stating that while it would not be in Europe’s interest to decouple itself fully from Beijing, the bloc should, however, look into diplomatic and economic ‘de-risking’. But they also come as the EU is in an increasingly uncomfortable geopolitical spot due to deepening tensions between the US and China. Member states are currently torn over how to act, with some reluctant to start a trade war with Beijing, a major economic partner of several larger EU member states. Washington, meanwhile, has been doubling down on its hawkish stance toward Beijing and is pushing the EU to follow suit. On this issue, EU officials and diplomats expect the pressure to increase towards the end of the year when US presidential elections could see the return of Donald Trump to the White House, or the victory of a China-hawkish Republican candidate. At the same time, the economic security strategy also aims at defending Europe’s strategic sectors from being bought piecemeal by other countries, as was recently the case of Saudi Telecoms quietly taking over Spain’s telecom giant Telefonica. Luca Bertuzzi contributed to the reporting. [Edited by Zoran Radosavljevic] Read more with Euractiv 'Austerity will return'After a process of almost 4 years, the negotiations on the reform of the EU’s fiscal rules have entered the very last phase: Trilogues ahead! Time is pressing, so let’s have a look at what is still open to change. 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