The European Commission wants to be able to force suppliers to sell their products to the European Union first in times of crisis if it is struggling with shortages. This should ensure that Brussels no longer ends up in a situation like during the corona pandemic, when it had to make an effort to get enough masks and vaccines.
Now the European Union is sometimes left behind when, for example, the United States requires scarce products with the help of emergency legislation. The EU wants to be able to defend itself against such competition.
The committee therefore wants to have powers to ensure the supply of essential products in times of crisis. For example, Brussels wants to be able to impose the construction of minimum stocks, redesign supply lines and increase or start the production of important goods. In this regard, companies need to show what they have in stock, what they are working on and what they could do.
In an emergency, the committee should be able to instruct a company to produce, for example, a virus inhibitor or food for the EU. Such a company must have very good reasons for refusing. If he does not have them and does not respect the order, periodic penalties and fines may follow.
However, the proposed rules will not apply to some products. This concerns, for example, potato chips, medicines and energy. Separate rules are in effect or in preparation for this.
It is not certain that the plans will go ahead. Member States and the European Parliament have yet to approve them. Whether such approval will come remains to be seen. A number of Member States, including the Netherlands, do not want to intervene so deeply in the free market.
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