EU to adopt economic security doctrine to reduce dependence on China, US - Reports

MOSCOW, Russia - The European Union will adopt its first economic security doctrine to reduce its dependence on decisions made in Washington and Beijing, reported Sputnik quoting a Politico report on Wednesday.

European Commission (EC) President Ursula von der Leyen will present the doctrine on June 20, the report said. In addition to reviewing foreign takeovers of European companies and imposing fines on subsidised competitors, the EU will resort to an unconventional method to protect its economy - "outbound investment screening mechanism."

The newspaper said Europe is worried that rising tensions between the United States and China could have a negative impact on its economy, as both countries are the EU's largest trading partners.

But not everyone in the bloc is happy with the idea. One European diplomat told Politico that there is "a fear among the more liberal-minded member states that we are raising obstacles which are not warranted from an economic point of view." Besides, some member states are reluctant to cede control of their exports to the supranational level, according to the report.

Not everyone is fully in favour of the doctrine, even within the EC itself, the newspaper said. For example, Trade Commissioner Valdis Dombrovskis and Competition Commissioner Margrethe Vestager, both free-market advocates, have expressed concerns about the plan. - BERNAMA-SPUTNIK