SPD Calls for "Buy European" Strategy to Bolster EU Industry Amid US‑China Rivalry
Economy / Finance

SPD Calls for “Buy European” Strategy to Bolster EU Industry Amid US‑China Rivalry

The Social Democratic Party (SPD) says that the growing economic rivalry-particularly with the United States and China-demands stronger protection and insulation of German and European markets.

On Monday morning the SPD Presidium will adopt a resolution that calls for a tougher “Buy European” stance within EU trade policy. It proposes that public procurement should systematically favour European products and services. In a draft presented to the “Rheinische Post” the party criticises China’s large state subsidies and the United States’ high tariffs, warning that “when other countries no longer play by the rules, we cannot be naïve”.

Vice‑Chancellor and SPD leader Lars Klingbeil told the “Rheinische Post” that an increasing number of states distort global competition through subsidies and tariffs. “Europe must not sit on the sidelines while other large economies protect their industries and exploit economic dependencies” he said. “We want Europe to be so strong economically that we cannot be blackmailed”.

SPD Finance Minister added that the EU’s Industrial Accelerator Act is a vital step toward economic sovereignty, but that the current Commission proposal falls short of ambition. He specifically targets the steel sector, demanding clear rules for EU preferences that would favour climate‑friendly European steel used in key infrastructure, defense, and automotive projects.

According to the resolution, the party seeks to align public funding and procurement more tightly with the goal of securing domestic value chains and preserving jobs in Europe over the long term. It also aims to reduce critical dependencies by accelerating the shift to non‑fossil, local energy sources, creating new energy partnerships, and diversifying supply chains. “Resilience requires that we prevent vital intermediate goods from becoming political leverage” the paper states.

The SPD leadership is pushing for a bureaucracy‑light rollout of “Buy European” rules in public funding and procurement-especially for green steel and automotive production. It urges the European Commission to incorporate local‑content requirements for green steel into the Industrial Accelerator Act. “We already have European companies that have taken major steps toward climate‑neutral steel, with significant state support. Ignoring these pioneers would send the wrong message” the party argues.

SPD Chairwoman and Labour Minister Bärbel Bas summarised that a robust European industrial policy means increased production and value creation within the continent, procurement that strengthens jobs in the internal market, and clear rules that counteract dumping practices which systematically erode prices and standards. Chancellor Friedrich Merz of the CDU has recently expressed scepticism about stricter market isolation.