Changes from report parliamentary committee draft to plenary report

The COVID-19 pandemic, Russia’s war of aggression against Ukraine, repeated disruptions to global transport routes, and the increasing use of economic coercion have exposed structural vulnerabilities in supply chains, access to critical inputs and key infrastructure. These developments reflect a lasting transformation of the international environment, characterised by intensified geopolitical rivalry and systemic competition. In this context, economic security has become an essential dimension of the Union’s overall security and foreign policy.

This own-initiative report sets out the European Parliament’s position in light of the Joint Communication of December 2025 on Strengthening EU economic security. It aims to respond to this evolving risk landscape by reaffirming that openness to trade and investment remains the Union’s primary source of strength, rejecting protectionism and economic isolation as automatic responses to geopolitical uncertainty. Instead, it promotes diversification, competitiveness and deeper integration within the single market as the most effective and sustainable foundations for resilience. Multiple, balanced and rules-based interdependencies with reliable partners are essential to reducing strategic vulnerabilities while preserving economic dynamism.

Trade agreements and strategic partnerships play a central role in this approach. Beyond their traditional market access function, they are increasingly instruments for promoting supply-chain transparency, fair competition, access to critical raw materials and regulatory cooperation. The report therefore calls for an ambitious and coherent trade agenda that supports resilience while maintaining high standards and legal certainty for economic operators.

At the same time, the report recognises that diversification alone is not sufficient to address certain high-risk dependencies and strategic exposures. In certain cases, targeted mitigating measures are necessary to safeguard essential Union interests. Such measures must remain proportionate, evidence-based and subject to continuous review. Similarly, avoiding fragmentation, overregulation and unnecessary administrative burdens is crucial to preserving Europe’s competitiveness and investment attractiveness.

Effective economic security also depends on the credible enforcement of existing rules. Delayed or inconsistent application of trade defence, enforcement and other instruments weakens deterrence and undermines confidence. The report therefore stresses the need for timely, predictable and coordinated enforcement, combined with a gradual and reversible escalation framework that preserves legal certainty and room for de-escalation.

Investment flows are another key dimension of economic security. While foreign and outbound investment are vital drivers of innovation and growth, they may also generate strategic risks when sensitive technologies, infrastructure or decision-making capacities become vulnerable to external influence. The report highlights the importance of robust and harmonised implementation of the EU’s foreign direct investment screening framework, as well as systematic risk assessments related to outbound investment and technology transfers. Particular attention is given to advanced digital, industrial, space and energy technologies that underpin the Union’s long-term competitiveness.