1. Sovereignty Over Supply? The EU’s ability to manage critical dependences while engaging with the world
- Author:
- Daniel Fiott and Vassilis Theodosopoulos
- Publication Date:
- 12-2020
- Content Type:
- Policy Brief
- Institution:
- European Union Institute for Security Studies
- Abstract:
- Fears about the EU’s trade, resource and technology dependences have only grown since the outbreak of the pandemic, even though US-China trade disputes and the rolling out of 5G have played a significant role, too. Some analysts have pointed to the beginning of a ‘decoupling’ of certain supply chains away from China, and, while evidence suggests that some ‘reshoring’ has taken place since at least 2011, there are debates about whether the production of certain technologies should be relocated back to Europe after decades of de-industrialisation. Decoupling and/or reshoring are a reaction to geopolitically risky dependences, with the fear being that certain products, technologies or raw materials will be unavailable during times of crisis or that a reliance on third-party supplies will limit political freedom. In the digital age – where data dominates – there are also concerns that dependences may lead among other things to espionage or a curtailment of personal rights and freedoms. Despite the fact that decoupling is unfeasible, save perhaps for in very specific critical technology domains, the threat perception surrounding critical supplies has given rise to a different vocabulary and EU communiques and strategies are today replete with references to ‘technological sovereignty’, ‘open strategic autonomy’ and ‘digital sovereignty’. Yet, in conjunction with this rhetoric has come a raft of new policy initiatives. In February 2020, the European Commission released a bundle of strategies on data, Artificial Intelligence (AI) and the digital future, which stressed the importance of reducing technological dependences in strategic areas. This is why the Commission is to invest €8 billion in supercomputing and help leverage €20 billion per year for AI. In March, a new ‘Industrial Strategy for Europe’ was published that stated that critical raw materials are ‘crucial for markets such as e-mobility, batteries, renewable energies, pharmaceuticals, aerospace, defence and digital applications’. It will be much harder for the EU to develop supercomputers and batteries without secure supplies of raw materials. To this end, on 3 September a ‘Commission Action Plan on Critical Raw Materials’ was released along with an updated List of Critical Raw Materials and a foresight study looking at strategic technologies and dependent sectors over the 2030-2050 horizon. This bundle of initiatives has made the case for the EU to diversify resource supplies, especially in an era of digitalisation that demands increasing amounts of strategic resources found outside of the Union’s territory.
- Topic:
- Climate Change, Science and Technology, Sovereignty, European Union, Geopolitics, Supply, and Supply Chains
- Political Geography:
- China, Europe, and United States of America