European leaders declared determined today to strengthen the competitiveness of the European Union, put themselves at the forefront of new, green and digital technologies and reduce their dependence on third countries, especially China.

In their declaration, after the end of the informal meeting in Granada, Spain, the leaders say that the Covid-19 pandemic and Russia’s invasion of Ukraine in February 2022 have tested the resilience of the Union and it now needs to boost its competitiveness. The “27” agreed that it is necessary to limit their external dependence on digital and green technologies, raw materials and medicines and boost investment in research and skills.

“We will strengthen our position as an industrial, technological and commercial powerhouse, with particular emphasis on areas of high added value, where we already have the competitive advantage or can become pioneers” referred to in this announcement.

This text is expected to be the basis of discussions in the coming months surrounding the European Commission’s proposals that could lead to stricter control of technology exports, especially those technologies that can be used for military purposes.

The Commission intends to work with the 27 member countries to assess, by the end of the year, whether there is any risk to the financial security of the Union related to advanced semiconductors, artificial intelligence, quantum technology and biotechnology. This assessment is part of the Strategy for strengthening European economic security presented by the Commission in June, which looks at strengthening research and the EU’s internal market, building alliances with trusted partners and using existing trade defense tools. These tools could be used to investigate whether electric cars from China are unfairly benefiting from subsidies there. Investigations into other Chinese exports, such as wind turbines, are likely to follow, an EU source said.

Part of the debate will focus on whether countries are willing to harmonize their national security policies and transfer some powers to Brussels.

Another aspect is the extent to which European companies should remain open to foreign companies. Countries like Sweden and the Netherlands want more open markets while others, like France, focus on protecting local producers.