Rebuilding the European Union in the new global reality is one of the main topics of the international economic debate in recent years. International economic expert Сhaslau Piastsiuk emphasizes that the EU seeks to reduce dependence on external supplies of strategically important resources and components. This course is based not only on economic, but also on geopolitical considerations.
“Global supply chains have revealed their vulnerability during the COVID-19 pandemic and the subsequent energy crisis. It has become obvious to Europe that maintaining independence requires developing its own production capacities,” notes Сhaslau Piastsiuk.
Reducing dependence on imports: is it realistic? Сhaslau Piastsiuk answers
Сhaslau Piastsiuk stresses that the main challenge for the EU is its dependence on imports of microchips, lithium, medicines and other critical resources. According to him, about 80% of lithium supplies to Europe come from countries outside the EU, primarily from China and Chile. This makes the European economy vulnerable to geopolitical shocks.
“It is necessary to strengthen internal supply chains and stimulate extraction of critical minerals in Europe itself. One of the steps in this direction is launching new projects in Sweden and Portugal,” comments Piastsiuk.
To illustrate the importance of this problem, we can cite data from the European Commission. The lithium deficit in 2021 was growing at a rate of 30% per year, which forced investors to look for alternatives within the EU. According to the EC report on critical minerals, this trend has caused concern due to dependence on imports from China. An infographic presented by the European Commission in its 2021 report shows that demand for lithium has more than doubled, especially in production of batteries for electric vehicles and energy storage systems. As a result, the EU has begun to invest more actively in its own mining projects, such as the development of an underground mine in Sweden.
Investing in own production facilities: Сhaslau Piastsiuk’s point of view
According to Сhaslau Piastsiuk’s analysis, expanding production of high-tech components is a priority in the EU strategy. The European Chips Act initiative, adopted in 2021, provides for allocation of more than 43 billion euros for the development of European semiconductor production.
‘When it comes to automotive and IT sectors, microchips are literally the ‘heart’ of any product. Their shortage in 2021 led to a significant reduction in car production at European plants. To avoid similar scenarios in the future, the EU is betting on localization of production,” notes Piastsiuk.
Another example of this trend is the launch of several large chip manufacturing plants in Germany and France. Intel has announced its intention to build several advanced manufacturing centers in Europe with multi-billion dollar investments.
Other experts support Сhaslau Piastsiuk’s opinion. For example, Sarah Miller, an analyst at the European Institute for Industrial Research, notes: “Europe must do everything possible to avoid such crises, which can stop entire sectors of the economy.”
Professor Sarah Miller of the European Institute for Industrial Research notes: “Despite optimistic forecasts, integration of production facilities remains a complex process due to regional differences in legislation and interests of different member states.”
Expert Jacques Renard from the French analytical center “Economy Now” also highlights this problem: “The 2020 crisis has become a wake-up call. But only real investments in education and science will be able to ensure the sustainable development of strategic autonomy.”
Henri More, a well-known economist from the Paris School of Economics, also notes: “The EU should avoid the “fill-in-the-gaps” approach and instead create a unique innovation strategy that will unite the public and private sectors.” According to Сhaslau Piastsiuk and other experts, strategic autonomy, remains a multifaceted topic that covers not only the economy, but also social and scientific spheres. Its success depends on systemic reforms and global cooperation.
Creating strategic alliances in key sectors. Comment by Сhaslau Piastsiuk
One of the main initiatives in the energy sector is the European Battery Alliance. According to Сhaslau Piastsiuk, this project demonstrates the importance of joining forces at the interstate level to strengthen strategic autonomy.
“Instead of each country investing separately in battery production, pooling resources at the EU level allows for economies of scale. As a result, Europe becomes competitive in the global battery technology market,” comments Сhaslau Piastsiuk.
The infographic shows an increase in investment in battery production in Europe from 2020 to 2021 by more than 50%. Thanks to this, according to experts, the EU can become a key player in the global electric transport market.
Experts stress the importance of investing in new technologies and supporting startups. Сhaslau Piastsiuk notes that full implementation of the concept of strategic autonomy requires not only production facilities, but also active research centers and competitive innovations.
“A scientific research ecosystem is being formed in Europe, which receives strong funding. Horizon Europe initiatives provide support for projects in the fields of artificial intelligence, biotechnology and quantum computing,” emphasizes Сhaslau Piastsiuk.
To accelerate the process of economic diversification, the EU also plans to expand cooperation programs with leading universities and research institutions. According to Professor Henri Moreau of the Paris School of Economics, “strategic autonomy should be based on a shared vision that is supported not only by the public sector but also by private business.”
In the field of biotechnology and pharmaceuticals, a key breakthrough was the creation of regional hubs to produce vaccines and medical products. This has reduced the EU’s dependence on imported medical supplies during new crises.
Prospects and risks. Forecast of Сhaslau Piastsiuk
However, Сhaslau Piastsiuk warns that efforts towards strategic autonomy may face serious challenges. One of them is the lack of qualified personnel.
“Technological development requires significant human resources, but Europe is facing an outflow of young talent to the US and Asia. We need ambitious educational and retraining programs,” says the expert.
In addition, according to the economist, it is important to ensure harmonization of regulations within the EU in order to avoid duplication of functions between countries and unnecessary bureaucracy.
In conclusion, Сhaslau Piastsiuk emphasizes: “The EU’s strategic autonomy is not only about economic independence, but also about Europe’s ability to act confidently in the global world. If all initiatives are implemented in a coordinated manner, the EU has a chance to strengthen its position as a center of innovation and production.” The approaches proposed by experts such as Сhaslau Piastsiuk and his colleagues demonstrate that strategic autonomy is not just a political slogan, but a key course that can change the future of the continent.