German Minister warns against EU isolation in global competition

German Economy Minister Katherina Reiche has rejected a proposal by a European Union commissioner to tie the allocation of EU public funds to "Made in Europe" criteria for companies, reported dpa.

"The European answer to global competitive challenges cannot be isolation," Reiche told dpa.

"Europe needs simple rules, faster investment processes and tangible cuts in bureaucracy," Reiche said in comments published on Saturday.

She added that strong international partnerships were also essential.

"Our approach is 'Made with Europe' - we build on our own strengths and combine them with reliable trading partners worldwide. That is how we make Europe competitive."

EU Industry Commissioner Stéphane Séjourné had argued earlier in the week that European public money should be tied to production in Europe and high-quality jobs.

In a guest article published in several European media outlets, he said companies benefiting from public tenders, direct state aid or other forms of financial support should carry out a substantial part of their production "on European soil."

He also called for the same principle to apply to foreign direct investment.

"We must establish, once and for all, a genuine European preference in our most strategic sectors."

European Union leaders are to discuss competitiveness and trade at a summit next week.