Reinforcing Europe’s Technological Sovereignty Through Trade Measures: The EU and Member States’ Shared Sovereignty

Abstract:

This Insight focuses on the EU and Member States’ initiatives to reinforce Europe’s technological sovereignty (i.e. technological leadership and independence from others (especially China)) as far as semiconductors are concerned. It explores whether it is necessary to change the current allocation of powers between the EU and Member States to achieve the mentioned objective. It shows that the EU has enacted (or proposed to adopt): i) a number of internal measures to address the EU technological gap in various areas of the EU’s competence, including those in the field of the internal market; ii) unilateral trade measures designed to establish a level playing field for EU operators and to protect Member States’ technological assets.

National authorities have also taken unilateral trade measures such as the Dutch decision of March 2023 to establish an export control of chip technology. This measure was enacted at the request of the United States and is based on the need to avoid dependence, on the preservation of technological leadership and on security grounds. It is an attempt to react to China’s strategy (“Made in China 2025”) to close its technological gap in various areas, including semiconductors. The Dutch decision illustrates that the EU institutions and Member States can each exercise their competences and successfully protect Europe’s technological sovereignty (technological leadership) on the basis of a “shared sovereignty”. There is no need to change the Treaty rules to strengthen Europe’s sovereignty. However, it is necessary that Member States inform the Commission and coordinate their actions at EU level.

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