Brussels, 15 September 2022

On the 15th of September the draft report on resilient supply chains in EU trade to address current shortages of rapporteur Markus Buchheit (ID, Germany) was published.

The report points out that recent external shocks such as armed conflicts, the pandemic and disruptions of supply chains have tested the resilience of economies worldwide. At the same time, the EU’s economy remains dependent in areas such as energy and raw materials, medicines, cloud technologies, batteries and semiconductors.

Moreover, the report stresses that inflation and increases in commodity prices are expected to further challenge global supply chains, adding that the EU’s strategical dependence on external sources of energy undermines the EU’s economic resilience and strategic autonomy.

In this context, the report underlines that it is important to respond to negative consequences of external shocks with a coordinated approach at national and EU level.

The draft report also recalls that in cooperation with Member States and international partners, the EU should guarantee freedom of the sea and trade routes in general, thereby ensuring access to raw materials, energy and export markets.

The text calls for the  shortening of supply chains and the relocation to the EU of the production facilities of EU businesses that are currently located outside of the Union. In addition, the Commission and Member States should start a dialogue with neighbouring countries on the possibility of nearshoring production as well as regulatory cooperation, in order to boost EU security of supply and diversify sources at the same time.

Source: European Parliament