One of the most important priorities of the EU industrial strategy is to strengthen autonomy in the field of industrial equipment, technologies and raw materials. The pandemic, as well as the energy crisis, are having a catalytic effect on the speed with which the urgent and critical lack of autonomy is being addressed. However, the strategy should acquire the character of a timely and proactive response to the challenges of international competition, which is now acquiring the character of a general geo-economic confrontation.

More than 6% of imports are annually produced in the EU. presents goods and products of particular importance that are part of ecosystems of a strategic nature for the competitiveness and security of the European economy. Such goods, tentatively, are pharmaceuticals, chemicals, technological components and mineral ores. The sufficiency problems of these new materials are already becoming apparent in products or components of significant importance such as batteries, active pharmaceutical ingredients, hydrogen, semiconductors, 4th industrial revolution technologies. These imported products represent resources needed by both the most energy-intensive industries and the healthcare sector, with very little potential for supply diversification. Efforts to diversify international supply chains so that they are not dependent on geopolitical expediency are a good start, but they may not be the complete answer to a problem that, like energy, could damage the international competitiveness of industry, and thus the European economy. . The EU needs a coherent and comprehensive approach to strategic autonomy to ensure the viability of European industry and avoid dependencies that affect social welfare and jobs.

Over the past 30 years, the production of raw materials worldwide has more than doubled. Consumption growth is expected to reach 40% by 2040. Rare earth elements used in the automotive industry and metallic silicon used in semiconductor manufacturing come from non-EU countries such as China, Vietnam, Turkey, Brazil and South Africa. In addition to the geopolitical circumstances governing international trade, a high degree of supplier centralization creates a priori unequal trade relations if they are not balanced. The EU aims to limit this strategic dependency through immediate, medium and long-term impacts, especially in terms of increased electrification and the production of electricity from renewable sources and hydrogen.

In particular, the traceability of raw materials, increasing the use of secondary sources in the context of resource efficiency and the circular economy, increasing the sustainability of products and extending their service life, conditions for the export of primary and secondary materials, and investment in research and technology to create substitutes that are not subject to geopolitical expediency, should be the most immediate and effective means of limiting EU dependency. from third parties. Promoting alliances to create a European value chain for a range of strategic products should also be an important part of this comprehensive approach to reduce dependency and protect EU commercial interests.

The EU aims to limit strategic reliance on raw materials through immediate, medium and long-term impact.

The rates of green and digital transformation (which, together with the resilience of the European market and increased international competitiveness of the industry, constitute the remaining priorities of the European industrial strategy) will become precarious if the EU is unable to rationalize its strategic dependencies and ensure the uninterrupted supply of essential goods and products needed for an orderly work, competitiveness, but, above all, the sustainability of their industry.

The strategic autonomy of European industry affects the economic, political and social level in different ways. At the national level, it has a pronounced developmental character, especially during the period of attempts to significantly increase industrial production from 10% to 15% of GDP. An integral part of the national strategy for the industry, addressing even more effectively the dependencies that have traditionally driven Greek production. The upheavals in international trade in recent years – with protectionism, unfair competition – and distortions in third-country assistance – further exacerbate the need for increased strategic autonomy for European industry and the creation of a competitive and sustainable framework for its development.

* Mr. P. Lolos is a member of the SEV Board of Directors and Head of the Public Relations Committee.

** Dr. G. Xirogiannis is the CEO of SEV.