Europe is racing to reclaim its industrial and economic prominence with the new “Made in Europe” initiative, but deep divisions within the EU, combined with global pressures from the US and China, threaten to turn ambition into stalemate.
European ambitions meet internal divisions
Europe is attempting to reverse the decline of its economic clout and safeguard key industries through the “Made in Europe” initiative. According to the Greek newspaper Katimerini, the plan, while ambitious, is dividing the EU, reflecting long-standing disagreements, conflicting national interests, and divergent industrial strategies.
Faced with an economic slowdown across the continent, France has proposed a “buy European” policy. The initiative would grant European industries preferential treatment via subsidies and government procurement. Yet, the proposal has sparked immediate criticism from Scandinavian and Baltic nations, which warn it could overcomplicate the EU system instead of simplifying it.
Meanwhile, Germany and Italy, the continent’s industrial powerhouses, have opposed France’s approach, advocating deregulation as a more effective way to stimulate European industry. Many diplomats, however, argue that this misses the point: Europe must reduce its dependence on foreign economies and shield itself from external industrial competition.
Macron pushes protection without protectionism
French President Emmanuel Macron insists on the need for new rules to defend European industry “without resorting to protectionism.” He emphasises safeguarding sectors of strategic importance, including chemicals, clean energy technologies, steel, automotive, and defence industries.
Sweden, however, takes a more cautious approach. Prime Minister Ulf Kristersson argues that Europe should not shield industries that are fundamentally uncompetitive. He warned that any plan that compromises cooperation with other nations must be approached with scepticism.
Global repercussions and external concerns
Beyond internal EU divisions, other countries are watching closely. The UK and Turkey, historically significant markets for EU exporters, have expressed concern about potential exclusion under the new strategy.
Katimerini recalls that labels such as “Fabrique en France,” “Made in UK,” and “Prodotto Italiano” once dominated Greek shops, and wealthy American tourists would flock to Athens for European craftsmanship. Europe’s industrial dominance, however, was never limited to fashion — it extended to heavy industry, bolstered by tariff-free trade, free movement of goods, capital, and people, the euro, and globalisation.
The landscape changed dramatically with China’s entry into the World Trade Organisation, flooding US markets with cheap goods. German Economy Minister Lars Klingbeil warns that Europe must defend itself against Chinese overproduction and subsidies to protect millions of jobs and maintain its industrial base.
US-EU tensions and defence industry risks
The return of Donald Trump to the White House and his aggressive trade policies have further complicated matters. The European Commission has only recently begun to express concern. Commissioner for Industry, Stéphane Séjourné, noted: “Americans have American-made products, the Chinese have Chinese products — we cannot stand by idly.”
Yet, consensus in the EU remains elusive. Member states fear retaliatory measures, particularly from the US, if European defence industries are prioritised. Trump’s special representative to the EU, Andrew Puzder, warned that the “Made in Europe” law could harm allied defence efforts and weaken support for Ukraine. He described the initiative as a violation of last year’s trade agreement with Washington, posing a real threat to the transatlantic defence-industrial base.
Europe’s slow decline and structural challenges
The New York Times reports that Europe’s economic dynamism has stagnated. Even industrial giants like Germany are in recession. Europe increasingly relies on the US for technology and China for essential raw materials. Once a global industrial leader, the continent now risks becoming a “tourist playground” with a service-oriented economy. Philosopher Hans-Georg Gadamer once described this trend as “provincialisation,” and recent negotiations over Ukraine have highlighted Europe’s slide into second-tier status. Trump himself has bluntly warned that Europe risks “civilisational decline.”
Analysts argue that Europe must move away from the austerity fetish of the 1990s. Historian Adam Tooze calls EU technocrats “neoliberal talibs” for their uncompromising faith in market principles, which many now consider outdated. Yet, even a shift in ideology may be too late to fully reverse the decline.
Germany’s energy dilemma and the erosion of competitiveness
Economists highlight Germany’s deteriorating economic position as a result of severed energy ties with Russia. Before 2022, around 55% of Germany’s natural gas imports came from Russia, underpinning the competitiveness of its chemical, metallurgical, automotive, and machinery sectors. The Nord Stream pipeline symbolised this strategy, which originated under Gerhard Schröder and continued under Angela Merkel.
Since 2022, gas prices have surged eight to tenfold. Trade with Russia, which once exceeded €60 billion, has halved in two years. Production in energy-intensive industries has dropped by 15–20%, prompting companies like BASF to redirect investment to the US and Asia. This is not a temporary fluctuation — it is the erosion of Europe’s industrial advantage.
A сontinent at a сrossroads
The “Made in Europe” initiative highlights Europe’s urgent need to regain industrial strength, yet internal divisions, global pressures, and structural vulnerabilities pose formidable obstacles. Without decisive action, the continent risks prolonged economic stagnation and further erosion of its once-formidable industrial base.
THE ARTICLE IS THE AUTHOR’S SPECULATION AND DOES NOT CLAIM TO BE TRUE. ALL INFORMATION IS TAKEN FROM OPEN SOURCES. THE AUTHOR DOES NOT IMPOSE ANY SUBJECTIVE CONCLUSIONS.
Sigmund Huber for Head-Post.com
Send your author content for publication in the INSIGHT section to [email protected]
