A landmark agreement on “Buy European” policies emerged from the EU summit focused on Europe’s industrial future in an increasingly competitive global environment. Leaders from all 27 member states developed coordinated approaches to protecting strategic sectors while maintaining commitment to rules-based international trade where it serves European interests.
The summit addressed regulatory barriers that fragment the European single market despite decades of integration efforts. Services sectors remain largely national, with barriers preventing European companies from operating seamlessly across borders. Professional qualifications aren’t always recognized across member states, forcing workers and businesses to navigate complex recognition procedures. Construction standards vary by country, creating compliance costs for companies operating in multiple markets. Digital services face inconsistent data protection implementations and cybersecurity requirements across member states despite harmonized EU legislation, creating complexity that advantages large American tech companies who can afford compliance departments over smaller European competitors.
Ursula von der Leyen’s promise to address these barriers through further “simplification” represents long-standing European aspirations that have proved difficult to achieve. Member states often resist full harmonization because they view national regulations as important protections for local interests or expressions of national sovereignty. French regulations on labor markets, for example, reflect French social models and political compromises that France is reluctant to sacrifice for European harmonization. German regulations on corporate governance reflect German stakeholder capitalism models that Germany wants to preserve against Anglo-Saxon shareholder primacy approaches. Finding common European standards that respect legitimate national differences while eliminating unnecessary barriers has proved enormously challenging.
The Industrial Accelerator Act expected later this month will begin operationalizing European preference through content requirements for strategic products. Solar panels and electric vehicles are expected to be early priorities, with minimum European content levels required in government procurement. This could help rebuild European manufacturing capacity in sectors where Chinese competition has destroyed or threatens to destroy European industries. However, implementation will face challenges. European content requirements must be carefully calibrated to be achievable—if they’re set too high, governments may simply be unable to procure required products because European suppliers cannot meet demand at acceptable prices. If they’re set too low, requirements may be ineffective at rebuilding European industrial capacity.
The summit’s brainstorming format reflected recognition that Europe faces questions without obvious answers. How can Europe compete against China’s state capitalism and America’s tech giants without abandoning the social market economy model that has delivered prosperity and social cohesion? How can Europe maintain open trade that benefits European exporters while protecting against unfair competition? How can Europe achieve strategic autonomy without alienating the United States and losing American security guarantees that European defense still depends upon? These questions involve genuine dilemmas where trade-offs are unavoidable and different leaders reasonably disagree about the best path forward.