The European Commission plans to acquire emergency powers to intervene in the production of certain goods in critical situations, the German newspaper Frankfurter Allgemeine Zeitung reported. This so-called “single market emergency instrument”, which will be presented on September 13, establishes several phases that grant Brussels different powers depending on the situation. The “surveillance mode”, which could be declared before an event that could threaten the security of supply, allows the Commission to request data from companies and suggest that “strategic reserves” be constituted first and, if that is not enough, order them. In the event of a crisis, the Commission could directly dictate which orders companies should prioritize, according to the paper. Companies would only be exempted if the Commission's conditions cause economic hardship or for capacity reasons. If they refused, they would risk paying a fine.
This mechanism, according to the document, is designed to prevent member states from restricting their internal markets during a crisis – as was seen during the pandemic with the mask export bans – through transparency and better coordination of national measures. . A Commission official said the proposed measure aims to ensure greater transparency and coordination in the event of a critical situation, safeguard the free movement of services and goods and maximize the availability of essential products. The proposal would have to pass the green light of the European Parliament and the Council of Ministers of the EU.
