European Commission Unveils Economic Security Doctrine To Reduce Strategic Dependencies

The European Commission on December 3 unveiled a package of measures it has described as an economic security doctrine designed to cut strategic dependencies across key industrial sectors. The doctrine targets vulnerabilities from rare earths and semiconductors to critical supply chain chokepoints and proposes additional Brussels instruments to protect industrial capabilities, screen foreign investment and respond to export curbs by third countries.

Commission officials framed the initiative as a response to successive shocks that exposed structural weaknesses in European supply chains, including the pandemic, Russia’s war in Ukraine and a growing pattern of supply restrictions imposed by external powers. Officials said the doctrine would involve stronger coordination between trade and security policy, effectively bringing economic statecraft into a more central role in Brussels decision making.

At its core the doctrine seeks to balance two competing priorities. On one hand it aims to shore up European resilience by diversifying sourcing, encouraging onshore and allied production and creating mechanisms to limit transfer of strategic assets when national security or technological sovereignty is at stake. On the other hand it must preserve the single market and remain compatible with the European Union’s international obligations under trade and investment treaties.

The package does not list all legislative details, but it gives Brussels a mandate to expand investment screening and to develop retaliatory options against export curbs by other countries. Those tools will require careful legal design to conform with World Trade Organization rules and bilateral investment agreements, and they will almost certainly prompt debate in EU capitals over the right balance between openness and protection.

Member states are expected to receive the doctrine with mixed reactions. Governments with large manufacturing bases have long advocated stronger industrial policy to secure inputs for advanced sectors such as electric vehicles and chips. Smaller and more trade dependent economies have warned that heavy handed measures could raise costs and fragment markets. The Commission’s framing emphasizes coordination across the bloc to prevent unilateral national steps that would weaken collective bargaining power.

Internationally the doctrine will be watched closely by the United States, China and other major suppliers. For allies the shift offers an opportunity to align on secure supply chains through investment and procurement partnerships. For rivals, and for countries that have used export restrictions as leverage, it could accelerate a cycle of reciprocal measures and complicate diplomatic relations. Legal experts caution that any new restrictions will need to be transparent, proportionate and consistent with existing treaty commitments to avoid litigation or escalation.

The initiative marks a visible turn in European thinking toward strategic autonomy in critical technologies while remaining embedded in global markets. The next phase for Brussels will be to convert the doctrine into concrete proposals, secure member state agreement and map a rollout that reduces vulnerability without triggering unnecessary economic fragmentation. How the Commission manages those trade offs will shape Europe’s industrial and diplomatic posture for years to come.