Aura Salla: The EU must strengthen its markets and overall security
US trade policy is unpredictable. President Donald Trump’s statements and the tariffs imposed by his administration are shaking the global economy.
Looking at the figures from 2023, taking into account both goods and services, the EU has a small surplus of €48 billion with the United States. This corresponds to about three percent of the total trade volume of approximately $900 billion between the US and the EU. In terms of trade in services the EU had a trade deficit of around €109 billion with the US in 2023. The trade imbalance between the continents is thus not proportionally as large as President Trump repeatedly suggests. Of course, there are also other forms of interdependence between the US and Europe, such as our companies’ reliance on American tech giants’ services and data. At the same time, the EU has regulated its own digital markets in a highly unfavorable manner, which further slows the growth of alternative European success stories. The challenges of this equation have become clear, and efforts are being made to correct course by simplifying regulation. However, this path is slow and requires, at the same time, the development of capital markets, the advancement of the internal market, and a skilled workforce.
Last week’s plenary session in Strasbourg discussed, among other things, comprehensive security, energy-intensive sectors and the deregulation packages presented by the Commission. Regarding the resolution for Energy intensive industries, attention should be paid to achieving a functioning energy market and competitive energy prices, which will generate growth and competitiveness while facilitating a swift transition towards low carbon. It is crucial to ensure that the proposals do not add support elements harmful to the market.
The Commission also published its internal security strategy (Protect EU). The strategy is a positive step towards stronger internal security, with attention also given to hybrid and cybersecurity. However, there are concerns about the Commission’s flirtation with the idea of decrypting communications, which could expose highly critical entities such as hospitals, banks, and businesses, as well as children, to an increased risk of cyberattacks.
In the panel discussions that took place in March, a hot topic was comprehensive security, competitiveness, defense, and AI regulation. The EU must de-regulate sensibly, strengthen its sovereignty by enabling the growth of European companies, and be able to finance comprehensive security and direct defense through existing financial instruments.
My opinion on the multiannual financial framework (MFF) for the internal market was approved with a clear majority support in the Parliament’s Internal Market and Consumer Protection (IMCO). In addition, I was appointed to a highly significant reporting task to reform and streamline the InvestEU financing program for the Budget Committee. InvestEU is one of the Union’s success stories, aimed at using EU funds for riskier and more productive projects, particularly in the fields of digital and green transition. Funding is channeled through the European Investment Bank and the fund, as well as national banks.
The Commission is expected to present several proposals for simplification in the spring: on May 14th for Agriculture, May 21st for Small and Medium-sized Enterprises (SMEs), and June 17th for the Defense sector. On May 21st, a Single Market Strategy will be announced, and on June 25th, an updated proposal on State Aid rules within the framework of the Clean Industrial Deal will be released.
During Easter, I will visit Lappeenranta again for the first time in a long time and spend time with my family. We also received some good news as a family. As of August my husband will be working in Brussels which means we will finally be able to move back to Belgium with the whole group.
Wishing you a relaxing Easter,
Aura
Member of the European Parliament, National Coalition Party, EPP
