The EU seeks extraordinary powers to intervene companies and avoid supply crises

The European Commission does not want the same episodes to repeat themselves as during the same measures of the coronavirus pandemic, when European countries clung to national withdrawal and imposed trade restrictions that led to problems with the supply of basic products such as masks and tests. Thats why he Community executive has proposed this Monday a new mechanism that, in case of emergency, can force companies of certain critical goods to accept orders as a priority. Although Brussels repeats that this does not mean intervening in the market, the affected companies must allege “serious reasons” that prevent them from complying with these requirements and may end up being punished with sanctions if they do not do what they promised.

Although everything indicates that the pandemic has happily been left behind, global problems in the supply chain and the war in Ukraine have shown the need to ensure food safety or goods such as semiconductors. “The unilateral measures taken by member states and the lack of transparency harmed the free flow of supplies when we needed it most. This increased the scarcity of crisis-related and highly demanded goods. With the national authorities and the companies we try to end this negative spiral. We created green corridors for trucks to cross borders, for example. But the lessons learned remain clear: we need to make our single market operational at all times, including in times of crisis. We need to make it stronger”, he assured. Competition Commissioner Margrethe Vestager.

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