Name: Macro Matters: 'Buy European' could lead to 'EU-washing'
Uploaded: 2026-02-12T17:11:39.000Z
Duration: 6 min 7 s
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Is Buy European the answer to Europe's future in a volatile world?

This is macro matters and we're talking European competitiveness.

That's the theme of an EU summit being held in Belgium this Thursday, where leaders are considering the want to boo policy of favouring European companies in key sectors like tech.

The EU executive is expected to set targets for European content in products like electric vehicles and solar panels.

Well, Carsten Brusky is global head of macro at ING Research.

Carsten, some countries like France, embrace this idea.

Others that are traditionally more pro free trade, like the Netherlands and the Nordics, are not so keen.

Well, that is, as of In Europe, all of them are a little bit right, but

Because this debate shows us that we have two different teams here.

We have one team that is building more open trade, globalization rather in favor of structural reforms.

And we, we have the other team led by France, that is more protectionist, that goes more for government intervention.

And when you now look, especially like you mentioned, the Buy European idea, of course I think the idea is good.

Well, clearly it shows to strengthen the European economy.

But then when put into practice, I think this is where the difficulties would emerge.

One is clearly how would trading partners react?

Retaliation for a region that is highly depending on global trade, that is dangerous.

And the other one is that we could get a kind of EU washing of supply chains, because how can you really show that the entire supply chain or the biggest part of a supply chain is really made in Europe?

So I think what we clearly want to achieve is that customers, consumers will shift more towards European goods.

But to have a fully again regulated by EU does not make a lot of sense.

What else needs to happen then for Europe to regain competitiveness against the US and China?

I think we need to unleash business, we need to unleash innovation.

Well, one would clearly be reduce bureaucracy, reduce regulation and please don't come up with additional regulation to reduce regulation, just simply get rid of regulation.

that is a more difficult one, really get a fully functioning single market.

And to get a fully functioning single market, European leaders would have to tackle issues like tax harmonization, harmonization of pensions, of Social Security systems.

So everything that enables actually full labor mobility, that enables full mobility of corporates.

Because yes, in terms of the number of citizens, in terms of the size of gdp, Europe is equal to the us.

But when you look at the details, there are so many intra European hurdles that still have to be reduced or actually get away with them in order to make the EU really competitive vis a vis the US and China.

And final point, Elenda, sorry for this very long answer is Europe needs more investment.

What about unified European capital markets?

I think the latter part of your question is the ever occurring European problem, namely are these proposals actually feasible?

And yes, in an ideal world, in a theoretical world, a fully functioning capital market would make sense would clearly also boost not only trust into the European market, hence probably also increasing foreign investments into the European market would also allow then Europeans to invest more in the European capital market and not in the US European market.

When you look at in practice, we've still seen that European capitals tend to shield their national champions tend to shield their national markets and so therefore this will be a struggling in an ideal world, yes, a fully fledged capital markets union would also clearly boost the European economy.

The way around might be an idea to come up with something like a European sovereign wealth so a pan European investment vehicle which allows European citizens to actually invest.

The former ECB chief Mario Draghi said last week that Europe risked becoming subordinated, divided and deindustrialized all at once as the world changes.

And I would never dare argue with Mario Draghi in all honesty because his analysis is spot on.

The the problem currently is that we are gradually sliding into this future.

It is something that is not so tangible from day to day.

But when you look at a longer time horizon, you compare the situation from a few years ago with maybe what would happen if Europe does not react over the next five years.

It indeed means Europe further having lost international competitiveness, having lost international market shares.

And the point is, if Europe is unable to really grow and to be competitive, we won't have highly paid jobs in Europe anymore.

We need economic growth in order to finance our social economic model, which consists of a very good pension system, which consists of a very good Social Security and healthcare system.

We need well paid jobs in order to fund it.

You can watch more videos on Reuters.com.

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Macro Matters: 'Buy European' could lead to 'EU-washing'

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