A Competitiveness Compass for the EU
"A Competitiveness Compass for the EU" outlines the European Commission's strategic approach to enhancing the EU's competitiveness. A significant part of this strategy focuses on securing a reliable and diversified supply of critical raw materials, which are essential for the EU's energy, food production and industrial sectors.
The primary goals of the EU's strategy on minerals are to:
- Reduce Dependencies: Minimise reliance on single or highly concentrated suppliers of key strategic sectors through recycling, innovation, and research.
- Promote Domestic Production: Provide targeted financial support for establishing or promoting domestic processing or manufacturing capacities.
- Create Back-ups and Stockpiles: Establish reserves and stockpiles to ensure a stable supply of critical raw materials.
- Diversify Supply Chains: Form bilateral and multilateral partnerships to diversify supply chains and reduce vulnerabilities.
Key Measures for minerals:
- Joint Purchasing Platform: The Commission will create a platform for the joint purchase of critical raw materials, following the recent experience with AggregateEU. This platform will identify the needs of EU industries, aggregate demand, and coordinate joint purchases.
- Critical Raw Materials Act: The policy will combine the promotion of domestic production, stockpiling, and diversification to ensure a reliable supply of raw materials crucial for the energy, food production, and industrial sectors.
- Trade and Economic Security: The EU's trade relationships can sometimes create risks, and excessive dependencies can be exploited or weaponised. The Draghi report highlights the need for Europe to ensure the resilience of its supply chains, notably for critical raw materials.
These measures are part of a broader strategy to enhance the EU's economic security and competitiveness by ensuring a stable supply of essential minerals and reducing vulnerabilities in supply chains.
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