Statement by Executive Vice President M. Vestager on the European Economic Security Package

Statement by Executive Vice President M. Vestager

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Today, we adopted a package of new initiatives to enhance Europe's economic security.

This package is a direct follow-up to the European economic security strategy, which we presented in June 2023. This strategy stemmed from a simple observation: there is fierce competition worldwide for the technologies we need the most. And in this competition, Europe must be a player, not a playground. The whole point of our economic security strategy is to de-risk our economic interdependencies.

To address this, we first need to identify the precise risks. This is why in October we set out a list of technologies which we deem critical for our economic security. We are working with Member States on collective risk assessments in four areas: Artificial Intelligence, advanced semiconductors, biotechnology and quantum.

In parallel, we have been reviewing our own European instruments. Today we take initiatives to make sure they are fit for purpose to mitigate risks to our economic security.

Three of them are on trade – which Valdis will talk about. Two of them are on research and innovation. All of them help us to address risks to technology security and technology leakage. Because technology can flow in different ways, whether it is through exports, through investments, but also through knowledge acquired through research. This is what ties this package together.

First, we propose a Council Recommendation on research security.

For some time now, we have been working to secure Horizon Europe from research security risks, under the principle of “as open as possible, as closed as necessary”. In the current work programme, 31 actions accounting for 3.5% of the total, have eligibility restrictions. Cooperation with entities based in China has been excluded for innovation actions, and entities from Russia and Belarus are fully excluded from the programme. Just to name a few measures.

But Horizon Europe covers only a fraction of the overall research & innovation in the EU. That is why today we recommend actions at national level too.

We provide guidance to Member States and European research organisations. Concrete guidance to identify, and address, research security risks. We target partnerships with research organisations either based outside the EU, or based in the EU but controlled from outside.

It covers all risks stemming from foreign interference in European research and innovation. More specifically, we are looking at:

• the undesirable transfer of critical knowledge and technology, that may affect Europe's security, for instance if used for military purposes in third countries;
• the misuse of European research by third countries to diffuse certain narratives or infringe academic freedom;
• the misuse of European research to suppress or undermine fundamental values, whether in the EU or elsewhere.

To give you an example, in 2022, investigative journalists found almost 3.000 scientific collaborations of EU universities with Chinese military institutes since 2000. This may not have been illegal then, but is it desirable?

To mitigate those risks, the Commission comes with concrete recommendations to both Member States and research organisations, be it universities or public research labs.

For instance, we recommend conducting risk appraisals that include specific elements of a country's profile. Like the risk of civil military fusion, the human rights situation, or the level of academic freedom. Member States and research organisations must make sure that those risk appraisals are available within the research ecosystem. Including when making a funding decision to support a scientific project, or not.

To support them, the Commission will create a Centre of Expertise for Research Security, which will act as a “one stop shop” to Member States and research organisations. The point is to give advice and share best practices in dealing with risks related to their international cooperation.

The Commission also recommends that funding agencies take action to ensure research security is taken into account when preparing calls for proposals. Research organisations themselves should perform the necessary due diligence of their collaborations.

We have several examples of such efforts. Universities that provide a list of questions to their staff and students, that should be answered before engaging in any international collaborative venture. Research agencies that guarantee the anonymity of whistleblowers, in case a PhD candidate reports misconduct by a supervisor, for example.

One last point before I get to the second initiative.

Openness and international cooperation is in the DNA of every researcher. This DNA must now unfold in an increasingly complex and tense landscape, where security is a real, growing concern. What we are doing here is enabling researchers to navigate this complexity.

European researchers play a big role in Europe's prosperity, its competitiveness, and its security. This recommendation supports them to keep this role and responsibility, despite the new challenges they face.

The second initiative on research and innovation today is the White paper on dual-use research.

There are many technologies with a double civil and defense use. GPS data, night vision technology, drones, thermal imaging. Those technologies are extremely important to Europe's competitiveness. They highly benefit our economy. And because of their dual nature, they're also sensitive technologies that play a key role in our own security. So, we must boost our support for Research & Development in dual-use technologies.

The issue that we face today is that European programmes make a strict separation between civilian and defense research activities. They're not run, nor funded, by the same programmes. This limits the EU's ability to promote its edge in dual use technology.

So the purpose of this White Paper is to present three different options to break down those barriers and make the most of dual use:

• Option 1 - we go further based on the current set-up. This means we keep the existing structure and bring improvements;
• Option 2 - we partially remove Horizon Europe's exclusive focus on civil applications, by opening it up in certain domains to support dual-use projects;
• Option 3 - we create a new dedicated instrument with a specific focus on dual use.

Option 1 is possible as of now. Options 2 and 3 are only possible in the future Multiannual Financial Framework. With this White Paper, we want to test those three options, without expressing a preferred way forward at this stage. The consultation will run until the end of April, after which we will decide on next steps.

With those two initiatives, we are stepping-up our efforts to ‘promote' and ‘protect' our European research agenda. At the same time, we are making new associations to Horizon Europe, with partners such as Canada, UK, and New-Zealand. Promote, protect, partner – these are the three pillars of our EU economic security strategy.

Valdis, up to you.