European Commissioner for Internal Market and Industry, Stéphane Séjourné, has issued a forceful call for the European Union to implement a policy of "European preference" within its single market. The move is designed to strengthen the bloc's industrial base against what he describes as intensifying global competition, particularly from China and the United States.
The core of the proposal would see public procurement rules across the EU favoring goods and services that contain a significant proportion of components manufactured within the Union. "We must establish, once and for all, a genuine European preference in our most strategic sectors," Séjourné wrote in an op-ed co-signed by over a thousand business leaders. "It is based on a very simple principle: whenever European public money is used, it must contribute to European production and quality jobs."
Fault Lines Ahead of Alden Biesen Summit
The initiative has been under discussion for months within the Berlaymont, but it has laid bare significant disagreements among the twenty-seven member states. The debate is expected to reach a critical point at a special European Council retreat on competitiveness, convened by President António Costa for 12 February at Alden Biesen in Belgium.
France has been a long-standing champion of such an industrial policy, viewing it as essential for European sovereignty. The concept also has support from Germany and Commission President Ursula von der Leyen. However, a coalition of smaller and mid-sized member states remains deeply skeptical. They argue that the single market must remain fundamentally open, warning that protectionist measures could stifle innovation and disproportionately benefit the economic powerhouses of Germany, France, and Italy.
This dispute over "Made in Europe" rules compounds a broader, more fundamental split on how to revitalize the European economy. On one side, leaders like Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz are pushing aggressively for sweeping regulatory simplification. They recently presented a joint plan that takes aim at certain EU climate regulations under the Green Deal, which they view as an excessive burden on key industries like automotive manufacturing.
On the other side, French President Emmanuel Macron is advocating for a significant ramp-up in public investment, financed through both national budgets and potential new joint EU borrowing—a concept often referred to as Eurobonds. Macron has argued that the geopolitical landscape has shifted dramatically, rendering previous strategic reports outdated. "The Draghi report, which we did not fully apply, is already obsolete, partly because it did not take into account this acceleration of the world," he stated recently, citing Chinese industrial policy and new American tariffs.
The reference is to the landmark 2024 report on EU competitiveness by former Italian Prime Minister Mario Draghi, who, along with former Prime Minister Enrico Letta—author of a separate report on single market reform—is expected to attend the February meeting. According to an analysis by the European Policy Innovation Council, only 11% of the Draghi report's recommendations were implemented in the first year following its publication.
Séjourné framed the competitiveness challenge in starkly geopolitical terms. He pointed out that other major economies routinely employ national preferences to shield their strategic industries. Under his vision, companies receiving public contracts, state aid, or other EU financial support would be mandated to maintain a substantial share of their production within the bloc, a logic he suggests should also extend to screening foreign direct investment.
The coming summit will test whether EU leaders can bridge these divergent visions. The outcome will signal whether Europe chooses a path of defensive economic consolidation or one of open, but strategically reinforced, competition. The discussions occur against a backdrop of other pressing continental concerns, from energy security to managing technological sovereignty, as seen in debates over digital regulation.
