EU nations clash over ‘Buy European’ policy amid rising US and China pressure

BRUSSELS — European Union leaders gathered in Belgium this week to debate a sweeping overhaul of the bloc’s economic competitiveness, citing a volatile global landscape and mounting financial threats.

At the heart of the summit is the proposed "Buy European" policy. The initiative seeks to prioritize European companies within strategic sectors, such as clean technology, to bolster the continent's industrial standing.

The Belgian Prime Minister warned attendees of an "existential crisis" fueled by skyrocketing energy costs and the influx of subsidized goods from China. Leaders at the meeting reached a consensus that the EU must fundamentally shift its economic direction.

However, the proposal has sparked deep divisions among member states. French President Emmanuel Macron emerged as a staunch supporter of the policy, framing it as a necessary "defensive measure."

In contrast, German leader Friedrich Merz advocated for a more open economic strategy, focusing on deregulation and the expansion of trade agreements. Other nations, including Ireland, also expressed significant concerns regarding the protection of global free trade.

European Commission President Ursula von der Leyen struck a cautious tone, describing the policy shift as a "fine line" to walk.

The debate underscores the complex challenges facing the EU as it navigates the long-term fallout from Donald Trump’s trade wars, a previous over-reliance on Russian energy, and the expanding economic influence of China.

The debate surrounding a "Buy European" policy signals a tectonic shift in the European Union’s economic doctrine. The bloc stands at a critical juncture, forced to choose between the free-trade principles that underpinned its historical prosperity and a pivot toward protectionism. Once a policy taboo in Brussels, the proposal has gained serious traction as a strategic response to Washington’s massive subsidy packages and Beijing’s state-backed economic model.

At the heart of this ideological struggle is a widening rift between Paris and Berlin. France, consistent with its dirigiste tradition, is championing the protection of strategic domestic industries to ensure "strategic autonomy." Germany, however, remains wary. As an export-reliant economy, Berlin fears that erecting trade barriers will invite retaliation, ultimately causing more harm than good to the single market. This friction suggests that the traditional "Franco-German engine," which typically drives EU consensus, is increasingly misfiring.

For Vietnam, an export-led economy with deep ties to the Continent, this shift poses a significant structural risk. The EU is a cornerstone market for Vietnamese goods, particularly following the implementation of the EU-Vietnam Free Trade Agreement (EVFTA). If a "Buy European" framework is adopted—especially in high-stakes sectors such as electronics, textiles, and green technology—Vietnamese exporters will likely face a new battery of non-tariff barriers.

Specifically, stringent "local content" requirements could erode the competitive advantage Vietnamese manufacturers currently enjoy. As the EU weighs these protectionist measures, Hanoi will need to closely monitor the regulatory landscape in Brussels, as any move toward an insular trade policy will necessitate a comprehensive recalibration of Vietnam’s European market strategy.