Europe-wide supply: EU emergency instrument for times of crisis

The corona pandemic and the Ukraine war have shown that times of crisis require quick reactions. With an emergency instrument, the EU Commission wants to ensure that Europe is supplied with the necessary goods in future crises.

The corona pandemic has shown how vulnerable the EU internal market is in the crisis: member states closed their borders, masks and medicines could not be delivered, cross-border commuters no longer came to work. The emergency instrument is intended to ensure that consumers continue to be supplied with important goods in the next crisis.

Blackout or cyber attack

Deputy Commissioner Margrethe Vestager emphasizes that you have to react quickly and together: “This instrument creates transparency and involves everyone in order to master future crises. We haven’t had anything like that until now.”

According to the Commission, future crises could be the effects of climate change, as well as economic and geopolitical uncertainties. Industry Commissioner Thierry Breton adds: “That would apply in the event of a natural disaster or if there is a blackout in a country after a cyber attack, unfortunately such scenarios are very topical today.”

reserves of important goods

An advisory committee made up of experts from the Commission and the 27 member states assesses when such scenarios will become a threat to the internal market. They initially observe the development closely – including the supply chains, in order to identify possible disruptions at an early stage.

At this stage, the Commission can direct governments to build up reserves of essential goods. The emergency will only be declared if the majority of EU countries agree. In this mode, they must not restrict the free movement of the internal market.

“The first objective of the instrument is to ensure that member states restrict the free movement of goods, services or people only to what is absolutely necessary to combat the crisis.”

keep the internal market going

Brussels can also ask companies to prioritize orders for essential goods. The Commission may request information that must be bindingly provided. If a company refuses, it must have good reasons, otherwise, according to Vestager, there could even be penalties.

According to the Commission, none of this has anything to do with a planned economy, on the contrary: the planned targeted interventions are intended to keep the internal market running. They are well prepared and transparent, says the Frenchman Breton: “That’s the opposite of a planned economy – prepared, well developed, transparent.”

Are the measures sufficient?

It is unclear which products should remain available through the crisis mechanism. Breton speaks of important raw materials. In any case, there are already EU regulations for medicines, semiconductors and food, or they are currently being prepared.

Member states and the EU Parliament must now discuss the proposals. The Europa-CDU welcomes them as the right answer to the challenges posed by the Covid pandemic and Russia’s war of aggression in Ukraine. The Greens also emphasize the importance of more cooperation. The Europa-SPD is skeptical that the measures are sufficient, and in the event of bottlenecks they are demanding concrete action by the Commission.