EU's Shift Toward Economic Protectionism

Ursula von der Leyen, President of the European Commission, is steering the EU towards a more protectionist economic policy. Her strategy aims to bolster Europe's competitiveness by reducing bureaucratic hurdles and prioritizing European firms in public tenders.

This approach suggests a pivot from stringent climate rules and a potential softening of regulations like the supply chain and sustainability reporting laws. Von der Leyen's economic plan, dubbed the 'Omnibus,' includes measures to lower energy costs and simplify investment in startups, semiconductors, and AI.

However, this shift raises concerns about undermining existing climate commitments and trade tensions, especially with the U.S. under Trump and China. The EU's evolving trade policy, focusing on bilateral agreements, indicates a move away from strict adherence to World Trade Organization rules.

Critics argue this could provoke retaliation from other global powers, seeing it as a response to similar protectionist stances by the U.S. and China. Despite the legal and diplomatic risks, the EU appears to be prioritizing economic resilience and job protection.