Stéphane Séjourné Warns of Trade War Fallout
The EU’s new industry commissioner, Stéphane Séjourné, has proposed a bold “Europe First” strategy to safeguard the bloc’s industries amidst potential global trade challenges. Speaking about his fears of Europe becoming collateral damage in a potential trade war initiated by Donald Trump, Séjourné emphasised the need for proactive measures to protect European markets and industries from external pressures.
“If the US says ‘America First’ and China says ‘Made in China,’ Europe must respond with ‘Made in Europe,’” said Séjourné.
Key Drivers Behind the Strategy
- Donald Trump’s Trade Policies
- Trump’s potential trade tariffs and efforts to reduce regulations for US businesses could destabilise global trade relations.
- Séjourné stressed the need to prevent Europe from being overwhelmed by surplus goods from closed markets.
- China’s Manufacturing Dominance
- Séjourné criticised the influx of heavily subsidised Chinese imports, which he says pose risks to European industries.
- Economic Challenges at Home
- Europe’s economy has faced setbacks, including mass layoffs in the steel and automotive sectors and the collapse of Northvolt, a flagship electric battery manufacturer.
Strategic Sectors to Bolster Growth
The commissioner outlined plans to strengthen industries vital for Europe’s economic and green transition, including:
- Steel: Critical for clean technologies such as wind turbines and car manufacturing.
- Clean Energy: Emphasis on hydrogen and digital solutions to reduce emissions in polluting sectors.
- Aerospace and Automotive: Key to sustaining employment and innovation.
“Steelmaking is strategic—there are no wind turbines or car production without steel,” Séjourné stated.
Addressing Protectionism Concerns
Séjourné rebuffed claims that the EU’s approach is protectionist, asserting the strategy focuses on offensive measures rather than isolationism. He underlined the importance of:
- Supporting domestic industries to foster employment and growth.
- Avoiding a global trade war while promoting European competitiveness.
Reassurance Amid Industrial Setbacks
Following Northvolt’s bankruptcy, which resulted in losses exceeding €300 million for EU-backed loans, Séjourné reassured investors of the bloc’s continued commitment to green industries.
“We must not abandon the battery industry. Setbacks should not undo our progress in building strategic sectors,” he said.
Unifying Capital Markets for Investment
Séjourné also highlighted the need to streamline the EU’s fragmented capital markets, creating a more favourable environment for investment. Despite resistance from some member states, the commissioner vowed to define critical sectors and foster a unified industrial policy within the commission’s first 100 days.
A Vision for Europe's Future
Séjourné’s "Europe First" approach aims to:
- Protect Europe from external economic shocks.
- Promote strategic autonomy in key industries.
- Lay the foundation for long-term economic resilience and green innovation.
The commissioner’s proactive stance reflects the EU’s ambition to remain competitive on the global stage while navigating an increasingly volatile economic landscape.
Source: (FT.com)
