EU seeking emergency powers to tackle supply crisis

Brussels, Sep 19: The European Commission unveiled a proposal on Monday that would allow Brussels to secure essential products from member states during a crisis.

Under the rules, European companies could be forced to prioritize the production of key products and stockpile goods or else face fines.

"We need new tools that allow us to react fast and collectively," EU Executive Vice President Margrethe Vestager said.

The proposed "Single Market Emergency Instrument" allows the Commission to order EU states to reorganize supply chains, including expanding or repurposing existing production capacities or setting up new ones, and placing crisis-relevant goods on the market.

For 30 years, the Single Market has helped keep 🇪🇺 strong and united.

Through the new #SingleMarket Emergency Instrument, we're better prepared for disruptions that could affect the EU economy.

This follows a commitment made by President @vonderleyen in her 2021 #SOTEU speech. pic.twitter.com/zGuf6d6rT0

— European Commission 🇪🇺 (@EU_Commission) September 19, 2022

Pushback from member states expected

The proposal is expected to face intense pushback from businesses and some EU countries, over concerns that the plan amounts to over-reach by the Commission.

The Commission will need to thrash out details with EU countries and EU lawmakers before the proposal can become law in a process that could take months.

Source: DW