EU's protectionist approach risks repeating Ireland's past

Ireland's domestic manufacturing sector remained heavily protected and inefficient after World War II, with trade barriers in place until the 1960s.

The gradual removal of these barriers in anticipation of EEC membership led to significant industry closures in the late 1960s and 1970s.

New foreign-owned firms eventually benefited from EU market access, proving that free trade ultimately boosted Ireland's economy.

The EU's current response to China's rise and U.S. trade policies includes raising trade barriers and implementing 'buy EU' regulations, which some argue are misguided.

EU factories are already under pressure, with manufacturing employment falling by 1.5 million between 2008 and 2024.

The loss of lower-skilled jobs has fueled political shifts, with parties like Germany’s AfD and France’s National Rally gaining support.

France has lost 800,000 lower-skilled manufacturing jobs, while Germany has seen a rise in graduate employment offsetting some job losses.

To build a successful EU manufacturing sector, policies should focus on helping industries transition to a globally competitive position.

Temporary protection should only be given to sectors with a realistic chance of competing globally within a reasonable timeframe.

China's dominance in battery and solar panel production is due to advanced research in materials science, not just government subsidies or access to rare earths.

The EU should invest in research and innovation to transform its manufacturing sector into a world-class supplier.

Pharmaceutical research is a key area for EU investment, as the U.S. has reduced funding, creating an opportunity for European leadership.