Dispute Over Preferential Treatment for European Companies Divides EU

Ahead of an EU summit on economic competitiveness, a dispute has emerged over the future direction of the European Union’s industrial policy. German Chancellor Friedrich Merz has rejected broad preferential treatment for European products in public spending, opposing proposals supported by France. The debate reflects broader questions about Europe’s strategic balance between open competition and stronger protection of domestic industries. 

Merz supports a “Made with Europe” approach that emphasizes international cooperation and deeper integration of European companies into global value chains. In his view, general preference for European suppliers could discourage investment and restrict economic openness.

French President Emmanuel Macron, by contrast, advocates prioritizing European companies, particularly in strategic sectors such as defense, clean technologies and industrial production. The goal is to strengthen Europe’s economic sovereignty and improve competitiveness against the United States and China.

The debate is driven by rising geopolitical tensions, global subsidy programs and growing competitive pressure on European industries. The European Union is therefore considering measures to support domestic manufacturing, reduce bureaucracy and strengthen the single market. Critics, however, warn of protectionist effects and potential trade conflicts.

The discussion over the EU’s economic policy direction is seen as crucial for Europe’s future role in the global economy. Decisions on industrial policy, investment strategies and state support could have long-term implications for growth, innovation and the competitiveness of European businesses.

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