Brussels is preparing a revolution. Cars and key goods to be “Made in Europe”

The EU proposes that at least 70 percent critical goods, including cars, were produced in Europe, which is intended to reduce the Community's dependence on China, the Financial Times reported on Wednesday, citing officials familiar with the draft EU regulation on this matter.

Introduction of such a policy would force companies in EU countries to buy some products on the local market, which would reduce the EU's dependence on China – wrote the British daily.

According to EU officials quoted by the newspaper, this policy may cost EU companies over EUR 10 billion a year because it will force them to purchase more expensive European components.

One of the sources said the scope of the proposed regulations, to be presented on December 10, would reflect China's “Made in China 2025” and “China Standards 2035” policies. They made foreign enterprises' access to the Chinese market dependent on their creation of joint ventures with Chinese enterprises.

“We are trying to strike a delicate balance between the much-needed protection of our industry and the openness that is so important to Europe,” the official said.

Three other FT sources informed that the introduction of the so-called local content thresholds – levels of European components in products. These thresholds would be up to 70%, but “the targets will vary depending on how important a given sector is and how much dependence on it is.”

World Trade Organization rules prohibit favoring domestic producers, but provide for exceptions for safety reasons, recalled “FT”.

Some EU officials have expressed concerns that once the new policy is introduced, products made in Europe will be much more expensive than those imported from Asia, which could lead to some goods being withdrawn from the market.

From London Marta Zabłocka (PAP)

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