On 5 June 2026, European Commissioner for Trade and Economic Security Maroš Šefčovič addressed the Brussels Economic Security Forum, calling for a dedicated diversification instrument modelled on the Energy Union and urging industry to treat geopolitical risk as a core business risk. He stressed that economic security must be built from the inside out, with a stronger Single Market and deeper capital markets union as foundations.
Šefčovič argued that openness without security is vulnerability, reiterating the EU's commitment to rules-based trade while asserting that the bloc is using existing tools more assertively and building new ones where gaps exist. He cited the revision of the Foreign Direct Investment Regulation, reinforced export controls, and recent action to ensure EU funding does not benefit projects contrary to economic security interests.
The speech contained few concrete numerical targets or deadlines, instead offering broad policy orientation. Šefčovič proposed a dedicated diversification instrument inspired by the Energy Union, which he oversaw in a previous Commission mandate. He noted that investing in LNG terminals and interconnectors was unpopular at the time but proved vital after Russia's invasion of Ukraine in 2022. He argued that a similar step change is now needed for critical minerals and other high-risk sectors to reduce single-supplier dependence.
On trade agreements, Šefčovič highlighted that the EU has 45 agreements in force with 80 countries, and with concluded negotiations with Indonesia, India, and Australia, that would rise to 48 deals covering 83 countries. He framed each new agreement as reducing dependence and creating opportunities.
Šefčovič also emphasised the importance of the Single Market, stating that a 2% increase in internal trade could completely offset the impact of US tariffs. He called for dismantling internal barriers, moving towards less fragmented capital markets, cutting red tape, and reducing energy prices as foundations of economic security.
The speech did not announce new legislative proposals or specific budget allocations, but rather set out a strategic direction. Šefčovič placed responsibility on industry to diversify rapidly and integrate resilience costs into business models, warning that the cost of inaction could be existential.
EU producers in high-risk sectors (e.g., chips, rare earths) would face pressure to diversify supply chains, potentially increasing short-term costs but reducing long-term vulnerability. EU consumers could benefit from more resilient supply chains and lower energy prices, though diversification costs may be passed on. EU regulatory bodies would need to design and implement the proposed diversification instrument, requiring additional resources. EU trade partners, particularly those currently dominant in critical mineral supply, may see reduced dependence as the EU seeks alternative sources.
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