In crises such as the corona pandemic or the Russian war against Ukraine, the European Commission wants to be able to set production targets for companies in the future. In concrete terms, this involves giving priority to certain orders for the production of “crisis-relevant goods”, as a bill demonstrates.
Companies should first of all do this on a voluntary basis. However, if they do not accept the recommendations, the Commission could oblige companies “in exceptional circumstances” to give priority to certain orders. This is apparent from the draft available from the German Press Agency. Earlier reported, among others, the “Frankfurter Allgemeine Zeitung” (Friday).
Commodities that are “non-diversifiable and non-exchangeable”
In extreme cases, it should also be possible for EU states to build up reserves of important goods. Here, too, it is initially unclear which goods are involved. The draft merely states that goods and services of strategic importance are goods and services that “are not diversifiable, non-interchangeable and essential for the functioning of the internal market in strategically important areas of the economy”.
However, some things can still change in the design. It has not yet been formally presented by the European Commission. According to the current state of affairs, the cabinet of Ursula von der Leyen is expected to make a decision in more than ten days. In addition, EU states and the EU Parliament as co-legislators should still negotiate a compromise. This usually takes several months, but in some cases considerably longer.
Emergency mode should be limited to six months
In general, the project foresees three phases: emergency planning, vigilance mode and emergency mode. Coercive measures for companies should only be possible once emergency mode has been declared. This may be the case, for example, if serious distortions of the internal market have already occurred. Emergency mode should also be limited to six months.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
