EU leaders set to clash over Buy European policy 

French president Emmanuel Macron has been the policy’s most vocal supporter, describing it as a “defensive measure” against “unfair competitors” who ignore international trade rules. Picture: AP Photo/Philippe Magoni, Pool

EU leaders are set to clash over whether a “Buy European” policy could revive Europe’s struggling economy, as they meet in Belgium this week to debate on how to compete with the US and China in an increasingly unstable global market.

The 27 heads of state will gather on Thursday at a castle in eastern Belgium for a strategic discussion on Europe’s declining competitiveness — a long-running concern made more urgent by the 2022 energy crisis, the fallout from Donald Trump’s trade wars, and China’s growing global dominance through state subsidies.

Under pressure to protect EU industries, the bloc is reconsidering an idea once seen as taboo, giving preference to European companies in strategic sectors such as clean energy, defence, and steel. The “Buy European” approach, championed by France, could require governments to prioritise European-made goods in public contracts.

Later this month, the European Commission will present an Industrial Accelerator Act, expected to set targets for European content in products like electric vehicles and solar panels.

French president Emmanuel Macron has been the policy’s most vocal supporter, describing it as a “defensive measure” against “unfair competitors” who ignore international trade rules. “Otherwise, Europeans will be swept aside,” he warned this week.

Several northern European countries — including Sweden, the Netherlands, and the Baltic states — are pushing back.

They warn that a protectionist shift would add regulatory complexity and deter investment.

Swedish prime minister Ulf Kristersson said he was “very sceptical” of any move that would limit Europe’s ability to trade and partner internationally.

“If the purpose of ‘Buy European’ is to protect EU business by avoiding cooperation with others, I’m not on board,” he told the Financial Times.

Germany and Italy have taken a more cautious stance. Chancellor Friedrich Merz and prime minister Giorgia Meloni recently called for “legislative self-restraint” — fewer EU rules and more focus on deregulation — while avoiding any direct endorsement of protectionism.

Their growing partnership has prompted questions about the state of the Franco-German alliance that has long anchored the European project.

European Commission president Ursula von der Leyen struck a careful tone, acknowledging that “Buy European” could be a “necessary instrument” in certain sectors but warning that it “is a fine line to walk.” Any proposal, she said, must be grounded in strong economic analysis and remain consistent with the EU’s international obligations.

The summit at Alden Biesen, a 13th-century castle in Limburg, will also tackle deeper economic challenges such as fragmented capital markets and internal trade barriers that slow green and digital investment. Von der Leyen criticised excessive national regulation, noting that a truck allowed to weigh 44 tonnes in Belgium can carry only 40 tonnes once it crosses into France.

Leaders will also hear from former Italian prime ministers Mario Draghi and Enrico Letta, whose recent reports warn that Europe risks becoming “divided and deindustrialised.” Draghi has called for a more federal Europe, arguing that national veto powers make countries “vulnerable to being picked off one by one.” Von der Leyen said she is open to moving ahead with economic reforms even without unanimous support.

“We have to make progress and tear down the barriers that prevent us from being a true global giant,” she told MEPs.

 - Guardian