From Chips to Medicines: Europe Pushes for Real Economic and Digital Sovereignty

POLITICSFrom Chips to Medicines: Europe Pushes for Real Economic and Digital Sovereignty

From semiconductors and software to critical raw materials, medicines, and active pharmaceutical ingredients, the European Union remains heavily dependent on supplies from outside the bloc. The European Parliament says that in 2026 one of its priorities will be to build genuine strategic autonomy—and, in doing so, strengthen the competitiveness of the EU economy. MEPs argue that this also means reinforcing Europe’s resilience and security in an era of global crises.

“The Parliament should be setting the direction here. It must do much more—and much faster—when it comes to boosting the competitiveness of the European economy. A great deal has been written about this, but when I talk to Polish companies across many industries, they say: nothing has really changed; energy prices are still as high as they were. As a result, Polish and European companies are not competitive compared with Asian or American firms, and similar obligations, rules, and administrative burdens under EU regulations remain in place,” Michał Kobosko, a Member of the European Parliament from Poland 2050 (Renew Europe), told the Newseria news agency.

One of the key challenges highlighted by EU institutions is the comparatively low competitiveness of Europe’s economy versus the United States and Asia—driven, among other factors, by high energy prices, market fragmentation, and extensive regulatory requirements. More than half of EU SMEs, which account for the majority of jobs in the Union, report administrative burdens or regulatory barriers. In response, further deregulation packages—so-called “omnibus” initiatives—have been announced, covering areas such as digital law, ESG reporting, the energy market, and selected industrial sectors.

“The European Union has built, over decades, what we might call an empire of regulation. Now we need to create an empire of deregulation,” Kobosko argues. “There are already several Omnibus packages—additional deregulation packages for specific industries. I think there will be many more. We hear from Polish and European companies that these are steps in the right direction, but they are not sufficient—like the recent digital Omnibus, which is changing our reality too slowly.”

Deregulation is expected to be one of the main instruments for keeping industry in Europe—especially in sectors such as steelmaking, cement, and automotive manufacturing, which face the combined pressure of high energy costs, climate policy demands, and fierce global competition. The European Parliament underlines the need to preserve a balance between climate objectives and the real capabilities of companies operating in the single market.

A second area that MEPs say will be fundamental in 2026 is the EU’s digital sovereignty. Official European Parliament analyses—drawing, among other sources, on a report prepared by former European Central Bank President Mario Draghi—point to Europe’s high level of dependence on non-European technologies, particularly in semiconductors, software, and digital infrastructure.

“According to the Draghi report, we are 80% dependent on non-European technological solutions. In this kind of mathematics, 80% dependence basically means 100% dependence—because today we are fully reliant on non-European solutions, which limits development opportunities for European start-ups and companies, for whom it becomes much harder to operate under these conditions,” the Poland 2050 MEP explains.

In response, the European Parliament is signaling intensified work on new regulatory frameworks for the digital and telecommunications sectors. A flagship initiative is expected to be the Digital Networks Act, described as a future “constitution” for the EU telecommunications market. The goal is to strengthen European operators and create conditions that encourage investment in digital infrastructure—seen as essential for the economy’s next stage of growth.

“Today, European telecom operators lag behind in competition with American or Asian companies—and we know that without connectivity there is no economic development in Europe. That is why we are waiting for these regulations and we will work very hard on them. We want the European Union to show that it can provide clear, tangible support to this specific and much-needed sector of the economy,” says Kobosko.

Beyond economic and digital issues, security—understood in a broad, multi-dimensional sense—is expected to remain the dominant theme of the European Parliament’s work in 2026, spanning military, energy, health, and food security.

“It’s one and the same word, but it can mean very different areas of action,” says Andrzej Halicki, a Civic Coalition MEP (European People’s Party). “This includes physical security—because we have a war at our doorstep, with Russia as the aggressor. Europe must be able to decide for itself and begin to act as a very serious player on the international stage. That requires strong leadership, but also agreement among leaders and a clear, shared direction. A coalition of the willing can even extend beyond the European Union, and 2026 will be a test for Europe in this respect—and I hope we will all pass it.”

Official European Parliament documents emphasize that amid growing geopolitical unpredictability and shifting transatlantic dynamics, the EU’s ability to act independently and forge common positions in foreign and security policy is crucial. They also note the increasing role of “coalitions of the willing” as a format for strengthening Europe’s capacity to respond effectively in crisis situations.

“Europe must be stronger, united, and very resolute. We also have economic and energy security linked to this situation. We have cut off Russia; we no longer buy energy and strategic raw materials from it, and therefore we are not funding its army. But because of that, we also need to expand our markets and partners,” the Civic Coalition MEP stresses.

Another priority singled out by the European Parliament is health security, which has become a permanent feature of Europe’s policy debate after the COVID-19 pandemic. MEPs are working to strengthen common crisis-response mechanisms, improve access to medicines, and increase the resilience of pharmaceutical supply chains.

“As the Polish delegation, we demanded not only a common policy in this area, but also a special committee that started operating this year—so we will also be securing budgetary support for these efforts. The first very important act is the document on critical medicines and cooperation in this field. This matters for citizens who have health problems, and Europe exists to guarantee that security for them,” Halicki notes.

Food security is also expected to be a significant part of the European Parliament’s 2026 agenda, particularly in the context of EU trade agreements with third countries. In official positions, the Parliament stresses the need to protect European production standards, consumer health, and the principle of reciprocity in international trade.

“This is not only a problem for producers and farmers—it is, above all, a problem of standards, which in Europe are at a completely different level. I mean food quality, not using certain chemicals and pesticides, and the norms that must be protected if these products are to enter our market. It is about our health and safety,” the Civic Coalition MEP argues.

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