Economic consultants advocate stronger European cooperation against supply bottlenecks - greater security of supply through purchase obligations and free trade agreements

Economic consultants advocate stronger European cooperation against supply bottlenecks - greater security of supply through purchase obligations and free trade agreements

According to a report by www.esslinger-zeitung.de,

The report by the Scientific Advisory Board of the Federal Ministry of Economics advocates that Germany reduce its dependence on other countries for critical goods. The international supply chain and the high degree of openness of the German economy in particular show that they are strongly affected by uncertainties. The experts emphasize that although trade statistics do not show major dependencies on individual importing countries, the picture looks different when it comes to important raw materials. Uranium ore and important substances for the pharmaceutical industry come from very limited supply countries. A decoupling of electronic products and IT services from important countries of origin would lead to real value added losses amounting to billions.

However, the scientists warn against political activism and emphasize that particularly short-term measures can often be counterproductive. In this context, they recommend stronger agreements at EU level that focus on the procurement of essential goods. In addition, the EU could strive for less market openness and instead improve the protection of foreign investments by German companies. In addition, public purchase obligations, the establishment of a European office for security of supply and the coordination of joint strategic reserves of important raw materials could make sense.

The potential impact on the market and the financial industry from these measures could be significant. If the report's proposals prevail, this could lead to greater EU cooperation and an increased focus on securing the supply of important goods. This may change both trade policy and investment conditions in Europe and lead to adjustments in companies' procurement strategies. Companies affected by complex international supply chains and dependencies on foreign raw materials may be forced to rethink their business models and shift to increased regional and European supply sources. In the long term, this could also contribute to a positive development of the resilience and resilience of the European economy to global supply bottlenecks.