‘Buy European’ Strategy Gains Momentum at Economic Leadership Summit

The European Union’s leaders committed to “Buy European” strategies during their summit addressing Europe’s need for greater economic sovereignty and industrial resilience. The meeting of all 27 member states focused on developing coordinated responses to competitive challenges from global powers and unfair trade practices.
French President Emmanuel Macron’s advocacy for European preference in strategic sectors has gained traction as evidence accumulates that Europe’s traditional openness has left critical industries vulnerable. Macron argues that clean technologies, chemicals, steel, automotive, and defense all require protection because European companies cannot compete against heavily subsidized Chinese competitors or benefit from the massive market advantages enjoyed by American companies in their continental market. He positions European preference as a “defensive measure” against competitors who “no longer respect the rules of the World Trade Organization,” framing it as legitimate response to unfair practices rather than protectionist deviation from free trade principles.
German leader Friedrich Merz’s alternative vision emphasizes “Made with Europe” approaches that would include trading partners rather than narrowly defining European content. This reflects Germany’s extensive supply chains that extend globally and concerns that narrow European content requirements could disrupt efficient production networks that German manufacturers have built over decades. Merz also champions aggressive deregulation as essential to European competitiveness, arguing that excessive regulation imposes costs and rigidities that make European businesses less competitive than American or Asian rivals who face lighter regulatory burdens.
The Merz-Meloni partnership has emerged as a significant force in European economic policymaking, potentially challenging the traditional Franco-German axis that has historically driven European integration. Italy and Germany co-hosted a pre-summit gathering of 19 member states to discuss industrial relaunch initiatives including review of the emissions trading system. Many manufacturers complain that carbon pricing creates competitive disadvantages against rivals in countries without carbon prices, forcing European companies to invest elsewhere or lose market share to imports that carry no carbon costs. This coalition’s emphasis on deregulation and competitiveness appeals to business interests frustrated by what they perceive as excessive European regulatory burdens.
The Italian-German partnership raises questions about Franco-German relations, which have cooled during recent years despite the Macron-Merz rapprochement. France and Germany disagree fundamentally on multiple issues including European preference scope, the Mercosur trade deal, defense policy, and fiscal rules. These disagreements reflect different economic models—French dirigisme versus German ordoliberalism—and different geopolitical perspectives. France prioritizes strategic autonomy and is willing to challenge the United States when European and American interests diverge. Germany has traditionally emphasized Atlanticism and worries that European strategic autonomy could alienate the United States and leave Europe isolated. As Germany develops closer ties with Italy, traditional Franco-German leadership of European integration may be evolving toward more complex multi-polar dynamics.