External Publications

September 28, 2021

Policy Recommendations: European Economic Sovereignty

Spinelli Forum 2021

POLICY RECOMMENDATION 3: #Pathfinders

We need nextgen representation to achieve EU #TechSovereignty. Our gender-balanced Board of 18-35 year olds #Pathfinders selected from all 27 MS advises the @EU_Commission to set the most important priorities on its path to reach the #2030DigitalCompass goals

Problem addressed

In the global race to tech supremacy, the EU relies too much on foreign competitors. Within the debates on EU tech sovereignty, regulation, and fragmentation, too little attention is paid to young voices. As such, young people are underrepresented in the process to achieve European tech sovereignty.

Policy Recommendation – Idea and Goal

In short: Establish a next generation representation on the “Path to the Digital Decade (PDD)” Framework (2030 Digital Compass)

The young generation should be represented within the “Path to the Digital Decade” Framework. A young advisory board should be set up within the 2030 Digital Compass to make young voices heard and to give them a channel to provide their distinct perspective. This board should consist of 27 members from all EU member states, aged 18-35, selected on a gender-balanced basis by the EU liaison offices. An annual report on recent achievements and future priorities should be presented to the European Commission, followed by an official response. A constant monitoring of KPIs, milestones and risks will be necessary to set relevant key priorities in the short term and monitor and keep priorities updated and implemented in the long term.

The role of Germany and Italy

The German and Italian Ministries of Foreign Affairs could carry this idea to the European level and jointly present the policy proposal to the European Commission.

POLICY RECOMMENDATION 4: Reduction of components through technological innovation (RCTTI)

#Strengthen the European value chain resilience in critical industrial sectors based on a new EU system

Problem addressed

There is need for improvement of the European value chain’s resilience in the single market. Without strengthening the resilience of its value chains, the EU risks growing external dependencies.

Policy Recommendation – Idea and Goal

In short: Reduction of components through technological innovation (RCTTI)

An EU-aid based loans system should be created to enable companies in critical industrial sectors to reduce the components and dependency on external suppliers through technological innovation (i.e., through modular platforms which share certain component parts). To be eligible to receive financial support, companies would have to belong to one of the critical sectors as identified by the EU, present a clear business plan, and be in at least three member states. Through this system, on the business side, dependency on external suppliers can be mitigated through incentives to reduce the number of critical parts. On a larger scale, the single market as well as its resilience from external shocks can be improved.

The role of Germany and Italy

Based on their economic structure, Germany and Italy must assume a leading role with a joint effort to implement the initiative and to foster both national and European markets.

POLICY RECOMMENDATION 5: German-Italian Trade and Technology Platform (GITTP)

A GER-ITA TTP can help strengthen the EU’s position in the US-CHN competition

Problem addressed

The US-China systemic competition forces third parties to politically align themselves with Washington or Beijing. The EU’s stance in relation to this global competition — and particularly public debates in Germany and Italy —  are to be addressed.

Policy Recommendation – Idea and Goal

In short: Create a German-Italian Trade and Technology Platform (GITTP)

A German-Italian Trade and Technology Platform should be created. This platform could raise public awareness about the US-China competition and its policy implications for the EU by fostering strategic dialogue between Germany and Italy, educating national policymakers on the strategic challenge of the US-China competition, and strengthening exchange between policymakers on the one side and trade and technology representatives on the other. This stronger bilateral coordination can provide orientation to other EU member states to formulate the EU’s stance on the US-China competition in a better and quicker way.

The role of Germany and Italy

Germany and Italy should start a bilateral dialogue on how GITTP could be designed. Relevant stakeholders should be identified, and concrete bilateral joint projects should be brought forward, following a clear agenda for what the TTP should accomplish. In the long term, the two economies could create a foundation of closer cooperation based on shared evidence.